- 06 Nov 2024
- ICICI Securities
HEALTHY GROWTH ON THE REVENUES; MARGIN RECOUPS Q1 DECLINE
News: Eclerx in Q2FY25 reported revenues of US$ 98.8 mn, up 7.5% QoQ/12.8% YoY. In CC terms the revenue was up 5.7% QoQ/12% YoY. Geography wise, North America (76% of the mix) and RoW (8% of the mix) grew by 7.3%, 6.9% QoQ respectively while Europe (16% of the mix) saw a decline of 0.5% QoQ. The company’s absolute EBITDA came at ₹228.8 crore, translating to an EBITDA margin of 27.1% up ~376 bps QoQ. The PAT for the quarter stood at ₹140.2 crore and PAT margin came at 16.9%, up ~258 bps QoQ. The company’s onshore revenue (20% of mix) and offshore revenue (80% of mix) increased by 5.6% and 6% QoQ respectively. The headcount for the quarter stood at 18,227, a net increase of 478 employees.
Views: Eclerx reported a strong performance with All the geographies witnessing an uptick barring Europe which saw a marginal decline sequentially. On the margins front, the company saw an uptick in its EBITDA margins, largely recouping the Q1 weakness where the margins had seen a decline of ~440 bps. Additionally, the revenues from the top 10 clients saw an uptick of 8.4%, from 0.5% last quarter. Management commentary on demand and growth is awaited.
Impact: Positive