eClerx Services Limited — PPTs, 14-05-2025: Investor Presentation

1. Financial Highlights:

eClerx reported Q4 revenue of INR 916.5 Cr, up 16.1% YoY, with operating revenue rising 17.2% YoY to INR 898.3 Cr. In USD terms, operating revenue grew 14.1% to $104.9 million. EBIT increased 13.2% YoY to INR 209.6 Cr, and net profit rose 16.6% to INR 152.2 Cr. EBITDA margin expanded 128 bps QoQ to 27.3% but was down 209 bps YoY. Basic EPS improved to INR 32.4 from INR 27.1. Consolidated cash balance stood at INR 1,025.8 Cr, with net operating cash flow of INR 654.6 Cr, reflecting strong cash conversion of 73.2%. Capex increased to INR 120.2 Cr from INR 86.4 Cr. Headcount grew 11.8% YoY to 19,267.

2. Strategic Initiatives & Growth Drivers:

Focus remains on scaling intelligent operations and analytics for Fortune 2000 clients globally. Wage hikes effective April 2025 highlight investment in talent retention. BFSI services (~43% of revenues) continue as a core segment. Strong USD hedge at average INR 86.66/USD helps manage forex risk. Expansion of global delivery centers supports growth and improves operational efficiency.

3. Business Developments:

No acquisitions or partnerships this quarter. Continued investments in automation and analytics aim to expand addressable market and deepen client relationships across financial services, retail, and technology verticals.

4. Market Position & Competitive Advantage:

With over 19,000 employees across global centers, eClerx provides end-to-end process management and analytics solutions for large enterprises. Leadership in complex, data-driven business processes and stable client concentration (top 10 clients contribute 64%) strengthen its competitive moat. Consistent growth in delivery headcount underpins scalability.

5. Investor Implications:

Strong revenue, profit growth, and robust cash flows signal positive growth potential. Latest margin expansion suggests improving operational leverage despite wage pressures. Investors should watch execution of wage increases and currency hedging effectiveness as key profitability drivers. Overall, stable fundamentals position eClerx well for sustained growth in digital transformation services.