Revenue Challenges Abound; Buy-back could Support Stock 1QFY17 financials of eClerx Services (eClerx) reflect major revenue challenges led by automation, in-sourcing initiatives and project roll offs. USD revenue fell 1.2% qoq (-0.6% in CC terms) to US$50.2mn, while yoy revenue grew by single digit (8.2%) for the first time since 3QFY15. It disappointed on EBIT margin also, which came in 147bps below our estimate (33.5% vs. 35% estimated) owing to pay hikes and reversal of gratuity write-backs. Notably, automation has impacted all its verticals Cable, Digital Marketing Financial Services to varying degrees. 2QFY17E revenue will be flattish, with possible...