eClerx Reports Strong Q3 FY25 Results with 13.1% Revenue Growth

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Mumbai, January 29, 2025 – eClerx Services Ltd. (BSE: 532927 | NSE: ECLERX), a global leader in data analytics, business process management, and automation solutions, announced its financial results for the third quarter of fiscal year 2024-25. The company reported a consolidated revenue of ₹875.2 crore, reflecting a 13.1% year-on-year (YoY) growth.

Financial Performance Overview

For Q3 FY25 (October–December 2024), eClerx reported:
  • Operating Revenue: ₹853.8 crore, up 13.4% YoY.
  • Total Revenue (including other income): ₹875.2 crore.
  • EBIT: ₹192.3 crore, down 1.1% YoY.
  • Profit After Tax (PAT): ₹137.1 crore, compared to ₹138.6 crore in Q3 FY24, a slight 1.1% decline.
  • Basic EPS: ₹29.2, compared to ₹28.8 in Q3 FY24.
In USD terms, operating revenue grew 11.2% YoY, reaching $100.7 million, compared to $90.5 million in the previous year.


Operational Highlights

  • Employee Strength: eClerx’s global workforce reached 18,514 employees, reflecting a 9.2% YoY increase.
  • Margins:
    • EBITDA Margin: 26.1% (down 103 basis points QoQ).
    • EBIT Margin: 22.0% (down 123 basis points QoQ).
    • Net Profit Margin: 15.7% (down 94 basis points QoQ).
  • Cash & Liquidity: Total cash and cash equivalents stood at ₹9,358 million, compared to ₹8,359 million in Q2 FY25.

Strategic Developments

  1. Strong Client Growth: eClerx expanded its strategic customer base, with the top 10 clients contributing 62%of total revenue.
  2. Geographical Performance:
    • North America: 76% of total revenue.
    • Europe: 16%.
    • Rest of World: 8%.
  3. Currency Impact & Hedging:
    • The company benefited from USD appreciation against INR, with a revaluation income of ₹106 million in Q3.
    • Total outstanding hedges stood at $242.4 million at an average rate of ₹85.86/USD.

Market Outlook

eClerx continues to position itself as a leader in data analytics and digital process automation. The company's strategic focus on BPaaS (Business Process as a Service) and automation solutions is expected to drive sustainable long-term growth.

Despite a minor dip in profitability margins, revenue growth remains strong across all business verticals, fueled by an expanding client base and increased offshore delivery capabilities.

Stock Market Impact: Given the strong revenue growth and steady operational performance, analysts expect positive investor sentiment, with potential upside in the stock price.
 
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