eClerx Services Ltd. share price target

eClerx (ECLX) has acquired Personiv an IT services firm with capabilities in the digital, back office and customer contact domains for a cash consideration of US$ 34mn.

eClerx (ECLX) reported a surprising growth and margin beat in Q2FY21 backed by CLX recovery and aggressive cost cuts.

eClerx (ECLX) reported a surprising operating margin beat in Q1FY21 backed by aggressive cost cuts.

In the current quarter, eClerx witnessed demand and supply side challenges. However, we believe the company could see improving revenue growth in coming quarters led by receding supply side challenges and improving demand. eClerx also witnessed healthy deal wins upwards of quarter million dollars. A few deal wins include a Nordic banking client, food business client and higher wins from existing clients. In addition, the company expects CLX business (that we believe contributes 18% to topline) to see improvement in coming quarters. Hence, we expect eClerx to witness a gradual...

In the near term, the company is expected to face a significant revenue impact due to some supply side challenges, lower demand, impact in voice and exposure to retail & travel vertical (that we believe together may account for 10% of revenues). As a result, we expect a sharp fall in Q1FY21E revenues. We expect the company to witness a marginal improvement from Q2FY21E onwards and to reach Q4FY20 revenues in Q4FY21E (as indicated by management). Based on our assumptions, we expect dollar revenues to decline 8.4% YoY in FY21E. However, we expect the company to witness an...

eClerx's (ECLX) Q4FY20 dollar revenue declined by a sharp 7.9% QoQ owing to onsite revenue contraction of 15%.

Revival in revenue growth key thing to watch Dollar revenues grew 3.4% sequentially after two consecutive quarters of decline. The growth was aided by one-off projects in the CLX business and milestone accruals. The management said the soft Q4FY20E was on account of one-off gains in Q3 and delay in ramp up of projects. Taking into consideration the weak performance in H1FY20 and a softer Q4FY20E, we expect mere 2.2% YoY revenue growth in FY20E. The company has faced certain client specific issues in the past and pressure in legacy business. In...

A mix of favourable yet transient dynamics saw eClerx (ECLX) staging a surprising operational beat in Q3FY20 (revenue up 3% QoQ, EBIT margin up 590bps).

eClerx (ECLX) reported a margin beat for Q2FY20 (EBIT margin at 16.9%), albeit backed largely by marketing cuts, while dollar revenue was a miss (1.6% QoQ).