Name: Latest research reports of eClerx Services Ltd. authored by Bonanza and published by - Trendlyne research reports.
Item: eClerx Services Ltd.
Rating: 5
Author: Bonanza

H1 to remain soft; valuations remain favourable

Buy: eClerx Services Ltd.

Target

Bonanza

eClerx posted weak operating performance in Q1. Revenue fell 2% QoQ, hit by budget cuts, drop in project renewals and unanticipated project cancellations particularly among large clients in the digital and financial markets. OPM declined by 530bps QoQ. Management expects revenue to rebound in Q2 and log closer to Q4FY23 levels, further improving in H2.