eClerx Services (ECLERX) Q4 23/24 earnings summary

Executive summary

• Revenue grew 10.5% year-over-year to INR 29,255 million, with USD revenue up 6.4% to $354 million, outpacing the market despite macroeconomic headwinds.

• Net profit after tax increased to INR 5,117 million, with a 5-year CAGR of 18% for net profit and 19% for EBITDA.

• Transitioned to professional leadership under new Group CEO, with a focus on productized services, automation, and analytics.

• Added 65 new clients, with 10 clients now in the $10 million+ revenue cohort.

Financial highlights

• Operating revenue: INR 29,255 million, up from INR 26,479 million year-over-year.

• EBITDA: INR 8,404 million (28.1% margin), up from INR 7,882 million (29.0% margin) year-over-year.

• Net profit after tax: INR 5,117 million, up from INR 4,892 million year-over-year.

• EPS: INR 106.2, up from INR 98.8 year-over-year.

• Dividend of Re. 1 per share proposed; buyback of INR 3,850 million completed in July 2024.

• Cash distributed to shareholders: INR 3,034 million.

Outlook and guidance

• Management expects continued growth, with strong pipelines in technology, finance, and compliance.

• Digital and customer operations divisions anticipate further expansion, leveraging investments in AI, automation, and new geographies.

• Board approved a 4-year strategic plan focused on sales, client mining, and unified market messaging.