eClerx Services delivering on margins lifts stock 7%; analysts raise concerns

May 26, 2023 / 10:47 AM IST

Shares of eClerx Services Limited spiked connected May 26 aft the institution reported beardown twelvemonth connected twelvemonth maturation successful gross and profits. However, sequentially, maturation was muted amid slowdown successful demand.

As of 10.20 am, the banal traded up 6.74 percent astatine Rs 1503 connected BSE.

eClerx Services connected May 25 reported a 17.1 percent year-on-year (YoY) summation successful nett net astatine Rs 488.8 crore for the 4th fourth that ended March 31, 2023. Its full gross stood astatine Rs 2,713.7 crore, up 24.2 percent from the corresponding play of the preceding fiscal.

EBIT borderline came successful astatine 25.8 percent, improving by 44 ground points, contempt wide slowdown successful the industry.

Analysts said the show connected margins was satisfactory arsenic they ended astatine the mediate of the guided set compared to their guidance of ending astatine little end, which mightiness beryllium the crushed down the crisp emergence successful banal price.

ICICIdirect noted that the institution had indicated successful Q3 that they were expecting immoderate softness successful the adjacent word and it is playing retired now. The brokerage said the show of apical 10 customers (59 percent of gross mix) is the cardinal wherever the anemic show continues for a mates of quarters present (8.6 percent YoY maturation successful Q4FY23 vs mean >20 percent maturation successful past fewer quarters).

“Similar signifier is disposable for apical 5 customer’s show (40 percent of mix) wherever the prime is captious for amended maturation ahead,” the expert added.

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