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management services across the customer lifecycle. Company offers a inclusive suite of business process management services through a widespread domain knowledge, internal competencies and strategic...

ICICI Securities Ltd | Retail Equity Research eClerx reported a mixed set of Q4FY16 numbers as though revenues were below our estimates, EBITDA and PAT were above estimates...

eClerx has posted revenue of US$50.8mn on 2.5% qoq decline in cc terms. FY16 revenue stood at US$199.2mn, registering 34% growth in cc terms with 18.8% organic cc growth. Growth decline in 4Q was due to 3.9% sequential decline in top-10 accounts, impacted by project completion largely in financial services vertical. Among geos, RoW had the highest contribution towards growth decline and non top-10 (emerging accounts) grew 4.7% qoq. Its Management expects flat 1HFY17E with subsequent pick-up in growth based on project schedules. Pipeline of Cable Division as well as Digital Business remains healthy. While Financial Services is expected to be volatile, Cable Division is expected to drive growth...

FSL's revenues during the quarter grew 6.8% QoQ led by continued momentum in top 2-5 (up 18% QoQ on top of 16% QoQ growth in Q3) and growth in BFSI and healthcare verticals. Top customer revenues...

Modest revenue growth & margin slips by 13bps qoq: Firstsource reported revenue of Rs. 8178 mn in Q3FY16 which is up by 3.2% Q-o-Q and 8.9% Y-o-Y. EBITDA is Rs. 1005 Mn which was Rs. 984 Mn in Q2FY16 and the margins dropped to 12.3% which is by 13 bps Q-o-Q and 17 bps Y-o-Y. This sluggish movement and ramp down in margins mainly due to disruption in Chennai operations and business continuity cost. However, the growth momentum is expected to continue in Q4FY16E due to ISGN acquisition, demand in Healthcare and Telecom segments.

eClerx has posted 4.8% QoQ and 42.5% YoY INR revenue growth and 3.2% growth in US$ terms in Q3FY16. Rollover of one short term project and some extensions during Q3 have driven the growth. Q4 revenue growth would largely remain flat versus Q2FY16 due to roll-off of short term projects in due course.

eClerx reported strong USD revenue growth (3.2% QoQ USD, 4.2% CC). Top-5 client revenue was the highest in five years (since 3QFY11) at 7.9% QoQ; YoY growth (17.5%), too, was the highest since 4QFY12. Non-top-5 clients, however, recorded a decline of 2.7% QoQ, the first since 4QFY12, as some top clients of similar size displayed divergent growth, leading to a change in classification. Higher onsite wage and delivery cost reduced EBIT margin (-115bps QoQ).

eClerx posted result that came slightly ahead on revenue while operating performance was nearly in-line. 3Q performance was driven by sharp acceleration in top-5 accounts while emerging accounts declined sequentially. Increase in shorterduration contracts, divergent growth trends in top-5 accounts and completion of projects in the near-term is expected to keep near-term growth/margin volatile, however, cable business is expected to remain strong ahead. We maintain our BUY...

Ex-Bonus Price Target Rs.1617; Initiating Coverage Report Price Target Rs. 2156 (Pre-Bonus) We had Initiated Research Coverage on eClerx services Ltd on 03rd Dec, 2015 with a BUY Rating and a Price Target of Rs. 2156. Post the Ex-date of Bonus issue of 1:3 (One share for every three shares held), the target stands adjusted accordingly to Rs. 1617 per share (from the earlier target of Rs. 2156).