ECLERX SERVICES Announces Quarterly Results (1QFY22); Net Profit Up 77.8%

Mon, 16 Aug

ECLERX SERVICES has announced its results for the quarter ended June 2021. Here is a detailed performance review of the same:

ECLERX SERVICES Quarterly Financials

No. of Mths Qtr. Ending		3 Jun-20*	3 Mar-21*	3 Jun-21*	QoQ Change	YoY Change
Net Sales	Rs m	3,366	4,728	4,863	2.8%	44.5%
Other income	Rs m	135	64	95	48.0%	-29.5%
Turnover	Rs m	3,500	4,792	4,957	3.4%	41.6%
Expenses	Rs m	2,552	3,203	3,451	7.7%	35.3%
Gross profit	Rs m	814	1,525	1,412	-7.4%	73.4%
Depreciation	Rs m	173	244	237	-3.1%	36.9%
Interest	Rs m	49	56	54	-2.7%	10.1%
Profit before tax	Rs m	726	1,289	1,215	-5.7%	67.3%
Tax	Rs m	209	305	295	-3.3%	41.4%
Profit after tax	Rs m	518	984	920	-6.5%	77.8%
Gross profit margin	%	24.2	32.3	29.0
Effective tax rate	%	28.7	23.7	24.3
Net profit margin	%	14.8	20.5	18.6

Year-on-Year Performance:

• The company's operating income during the quarter grew 44.5% on a year-on-year (YoY) basis. The expenses were up by 35.3% YoY during the same period.
• The company's operating profit increased by 73.4% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 29.0% in 1QFY22 as against 24.2% in 1QFY21.
• Depreciation charges increased by 36.9% and finance costs increased by 10.1% YoY, respectively.
• Other income declined by 29.5% YoY during the quarter.
• Net profit for the quarter increased by 77.8% YoY. Net profit margins during the quarter increased from 14.8% in 1QFY21 to 18.6% in 1QFY22.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 2.8% on a quarter-on-quarter (QoQ) basis. The expenses were up by 7.7% QoQ during the same period.
• The company's operating profit declined by 7.4% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 29.0% in 1QFY22 as against 32.3% in 4QFY21.
• Net profit for the quarter declined by 6.5% QoQ, while net profit margins declined from 20.5% in 4QFY21 to 18.6% in 1QFY22.

To see how ECLERX SERVICES has performed over the last eight quarters,please visit here.

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ECLERX SERVICES Share Price Performance

Over the last one year, ECLERX SERVICES share price has moved up from Rs 675.6 to Rs 2,281.0, registering a Gain of Rs 1,605.4 or around 237.6%.

Meanwhile, the S&P BSE IT Index is trading at Rs 32,885.5 (down 0.2%). Over the last one year it has moved up from 18,194.7 to 32,885.5, a gain of 14,691 points (up 80.7%).

Overall, the S&P BSE SENSEX is up 44.9% over the year.

Current Valuations

At the current price of Rs 2,281.0, the price to earnings (P/E) ratio of ECLERX SERVICES stands at 24.6 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 6.2 times.