Maintain NEUTRAL on eClerx with TP of Rs 1,285, 14x FY20E. eClerx posted strong revenue and sub-par operating performance. Revenue came at USD 53mn, 7.4% QoQ (6.5% CC) and FY18 revenue stood at USD 199mn, 2.3% YoY (vs. 2.5% decline in FY17). EBIT% came at 18.7%, -417bps QoQ (impacted by non-recurring items -270bps impact). FY18 EBIT% stood at 23.3%, -800bps YoY impacted by increase in delivery cost with onshore expansion (-560bps YoY impact) and S&M; impact of -240bps (increase in senior management hires and higher travel expense). 4Q APAT stood at Rs 0.64bn, 11.5% QoQ.