eClerx Services Ltd (NSE:ECLERX)
₹ 1,795.6 +32.3 (+1.83%) Market Cap: 165.25 Bil Enterprise Value: 156.64 Bil PE Ratio: 23.40 PB Ratio: 6.44 GF Score: 83/100

Q3 2025 eClerx Services Limited Earnings Call Transcript

Jan 30, 2025 / 11:30AM GMT
Release Date Price: ₹1502 (-4.12%)

Key Points

Positve
  • Operating revenue for Q3 was $100.7 million, marking a 1.8% sequential increase, driven by growth in digital and financial markets.
  • The analytics and automation business saw a 9% sequential increase, reaching $20.8 million, driven by change and transformation work.
  • eClerx Services Ltd (BOM:532927) achieved a significant milestone by crossing the INR400 million run rate.
  • The company has successfully set up a subsidiary in Peru and plans to launch operations in late Q4, indicating strategic geo-diversification.
  • eClerx Services Ltd (BOM:532927) received recognition as a major contender in the experience-driven integrated BFS operations peak matrix and assessment 2024, and is one of the five global companies certified for ISO 42001.
Negative
  • Margins in Q3 were lower due to the removal of one-offs from Q2 and lower utilization, aligning with long-term averages.
  • The company incurred higher legal fees related to setting up a new entity and tax consulting services.
  • Seating capacity increased by 1800 seats, leading to higher facility, housekeeping, security, and transportation costs.
  • The cable and telecom industry continues to face pressure, with a focus on subscriber retention.
  • DSO increased to 83 days from 77 in the previous quarter, indicating potential challenges in cash flow management.
Asha Gupta
Ernst & Young LLP - Vice President - Investor Relations Practice, Strategy and Transaction

Hi, everyone. Good evening participants, and welcome to the Q3 FY25 earnings call of eClerx Services Limited. Please note that this webinar will be recorded. To take us through the results, and to answer your questions we have with us, the top management of eClerx represented by Kapil Jain, Managing Director and Group CEO; and Srinivasan Nadadhur, Chief Financial Officer.

We will start the call with brief opening remarks by Kapil, followed by Srinivasan, who will be sharing the financial update and then we will open the floor for Q&A session. As usual, I would like to remind you that anything that is mentioned on this call that gives any outlook for the future or which can be construed as forward-looking statement must be viewed in conjunction with the risk and uncertainties that we face.

This risk and uncertainties are included but not limited to what we have mentioned in the prospectus filed with the SEBI subsequent annual posts which you can find on our website.

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