eClerx Services Ltd. Reports Strong Revenue Growth for Q4 FY2023-24

Mumbai-based IT consulting firm eClerx Services Ltd. has announced its consolidated financial results for the quarter ended March 31, 2024. the company reported sequential and Y-o-Y improvement in terms of operational revenue. The company continues its focus on operational efficiencies, even as it pursues an organic growth expansion strategy to diversify into developing markets. The Board also approved the buyback of equity shares through tender offer route for an amount not exceeding Rs. 385 Crores (Buy Back Size) at a price of Rs. 2,800 per share (Buy Back Price) and a final dividend of INR 1 per share, subject to approval of shareholders.

Key highlights from the consolidated financial results reported for the year ended March 31, 2024

On a consolidated basis, eClerx’s revenue from operations came in at INR 2,925.5 crore vs. INR 2,647.9 crore in FY2022-23, representing a solid 10.5% Y-o-Y growth. In USD terms, the company posted USD 353.9 million in operating revenue, signifying a 6.4% growth on a Y-o-Y basis.

Similarly, total income increased to INR 2,991.0 crore from INR 2,713.7 crore in FY2022-23, recording a 10.2% growth.

•Earnings before interest and taxes (EBIT) grew to INR 714.6 crore as compared with INR 695.7 crore in FY2022-23, amounting to a 2.7% EBIT growth on a Y-o-Y basis.

•Net Profit has grown to INR 511.5 crore as compared with the FY2022-23 number that came in at INR 488.8 crore.

•Basic earnings per share (EPS) has also increased from INR 98.76 in FY2022-23 to INR 106.15 in the recently concluded quarter, underscoring eClerx’s exceptional run of delivering positive shareholder returns even amidst a challenging external business environment.

•Total delivery headcount stood at 17,231 at the end of the March quarter, representing a 7.6% increase on a Y-o-Y basis,

Commenting on the company’s performance in Q4FY2023-24, Mr. Kapil Jain, Managing Director and Group CEO at eClerx remarked, “Once again eClerx has exceeded shareholder’ expectations and delivered good results, helping the company end the financial year with an annual profit of INR 5,115 million. This was achieved despite a global slowdown affecting IT demand, with the company leveraging its technological innovation and operational know-how to deliver exceptional value to all its customers. This customer focus and pursuit for operational excellence sets eClerx apart from its peers, with the firm counting a number of Fortune 2000 enterprises among its expanding client base. Looking towards FY2024-25 and beyond, our aim will be to stay relevant for our clients and expand the firm’s internal capabilities.”

eClerx’s revenue outperformance for FY2023-24 is largely credited to the strong growth in its top client base. The company has also won many laurels for its products and services in Q4 FY2023-24, a few of which are outlined below 

Key developments, initiatives and recognitions

•          eClerx’s Roboworx, the company’s flagship RPA product, selected as a winner of the ‘Technology of the Year-Excellence in Customer Service’ Award 2024

•          eClerx’s AI-powered digital shelf analytics platform Market360 was awarded Bronze at the E-commerce Germany Awards for Best Analytics and BI Solution