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ECLERX SERVICES 2017-18 Annual Report Analysis
Sat, 31 Mar

ECLERX SERVICES has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

ECLERX SERVICES Income Statement Analysis

  • Operating income during the year rose 2.6% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 15.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 28.5% in FY18 as against 34.7% in FY17.
  • Depreciation charges decreased by 6.9% and finance costs decreased by 25.3% YoY, respectively.
  • Other income grew by 42.7% YoY.
  • Net profit for the year declined by 18.1% YoY.
  • Net profit margins during the year declined from 26.6% in FY17 to 21.2% in FY18.

ECLERX SERVICES Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 13,300 13,651 2.6%
Other income Rs m 282 402 42.7%
Total Revenues Rs m 13,582 14,053 3.5%
Gross profit Rs m 4,610 3,887 -15.7%
Depreciation Rs m 518 482 -6.9%
Interest Rs m 16 12 -25.3%
Profit before tax Rs m 4,358 3,795 -12.9%
Tax Rs m 819 896 9.4%
Profit after tax Rs m 3,539 2,899 -18.1%
Gross profit margin % 34.7 28.5
Effective tax rate % 18.8 23.6
Net profit margin % 26.6 21.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

ECLERX SERVICES Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 2 billion as compared to Rs 1 billion in FY17, thereby witnessing an increase of 19.5%.
  • Long-term debt down at Rs 6 million as compared to Rs 7 million during FY17, a fall of 9.6%.
  • Current assets rose 3% and stood at Rs 10 billion, while fixed assets fell 1% and stood at Rs 4 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 14 billion as against Rs 14 billion during FY17, thereby witnessing a growth of 1%.

ECLERX SERVICES Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 12,003 11,858 -1.2
 
Current Liabilities Rs m 1,361 1,627 19.5
Long-term Debt Rs m 7 6 -9.6
Total Liabilities Rs m 13,981 14,189 1.5
 
Current assets Rs m 10,121 10,375 2.5
Fixed Assets Rs m 3,860 3,814 -1.2
Total Assets Rs m 13,981 14,189 1.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



ECLERX SERVICES Cash Flow Statement Analysis

  • ECLERX SERVICES's cash flow from operating activities (CFO) during FY18 stood at Rs 3 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs 170 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -3 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 278 million from the Rs -1 billion net cash flows seen during FY17.

ECLERX SERVICES Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 3,124 3,050 -2.4%
Cash Flow from Investing Activities Rs m -1,695 170 -
Cash Flow from Financing Activities Rs m -2,453 -3,035 -
Net Cash Flow Rs m -1,082 278 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for ECLERX SERVICES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 76.0, an decline from the EPS of Rs 89.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,203.2, stands at 14.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.4 times, while the price to sales ratio stands at 3.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 15.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 334.9 357.9
TTM Earnings per share Rs 89.1 76.0
Diluted earnings per share Rs 104.6 85.7
Price to Cash Flow x 11.7 15.5
TTM P/E ratio x 13.4 14.0
Price / Book Value ratio x 5.1 4.4
Market Cap Rs m 60,656 52,438
Dividends per share (Unadj.) Rs 1.0 1.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for ECLERX SERVICES

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 6.4x during FY18, from 7.4x during FY17. The current ratio measures the company's ability to pay short-term and long-term obligations.

    Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 324.8x during FY18, from 279.0x during FY17. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company declined and down at 24.5% during FY18, from 29.5% during FY18. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

    Return on Capital Employed (ROCE): The ROCE for the company declined and down at 32.1% during FY18, from 36.4% during FY17. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

    Return on Assets (ROA): The ROA of the company declined and down at 20.5% during FY18, from 25.4% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 7.4 6.4
Debtors’ Days Days 59 62
Interest coverage x 279.0 324.8
Debt to equity ratio x 0.0 0.0
Return on assets % 25.4 20.5
Return on equity % 29.5 24.5
Return on capital employed % 36.4 32.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how ECLERX SERVICES has performed over the last 5 years, please visit here.

ECLERX SERVICES Share Price Performance

Over the last one year, ECLERX SERVICES share price has moved down from Rs 1,405.6 to Rs 1,203.2, registering a loss of Rs 202.4 or around 14.4%.

Meanwhile, the S&P BSE IT Index is trading at Rs 12,100.6 (down 0.3%). Over the last one year it has moved up from 10,365.5 to 12,100.6, a gain of 1,735 points (up 16.7%).

Overall, the S&P BSE SENSEX is up 12.1% over the year.

(To know more, check out historical annual results for ECLERX SERVICES and quarterly results for ECLERX SERVICES)

Annual Report FAQs

What is the current share price of ECLERX SERVICES?

ECLERX SERVICES currently trades at Rs 2,354.8 per share. You can check out the latest share price performance of ECLERX SERVICES here...

What was the revenue of ECLERX SERVICES in FY18? How does it compare to earlier years?

The revenues of ECLERX SERVICES stood at Rs 14,053 m in FY18, which was up 3.5% compared to Rs 13,582 m reported in FY17.

ECLERX SERVICES' revenue has grown from Rs 13,513 m in FY16 to Rs 14,053 m in FY18.

Over the past 3 years, the revenue of ECLERX SERVICES has grown at a CAGR of 2.0%.

What was the net profit of ECLERX SERVICES in FY18? How does it compare to earlier years?

The net profit of ECLERX SERVICES stood at Rs 2,899 m in FY18, which was down -18.1% compared to Rs 3,539 m reported in FY17.

This compares to a net profit of Rs 3,417 m in FY16.

Over the past 3 years, ECLERX SERVICES net profit has grown at a CAGR of -7.9%.

What does the cash flow statement of ECLERX SERVICES reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of ECLERX SERVICES reveals:

  • Cash flow from operations decreased in FY18 and stood at Rs 3,050 m as compared to Rs 3,124 m in FY17.
  • Cash flow from investments increased in FY18 and stood at Rs 170 m as compared to Rs -1,695 m in FY17.
  • Cash flow from financial activity decreased in FY18 and stood at Rs -3,035 m as compared to Rs -2,453 m in FY17.

Here's the cash flow statement of ECLERX SERVICES for the past 3 years.

(Rs m)FY16FY17FY18
From Operations4,1773,1243,050
From Investments-1,647-1,695170
From Financial Activity-1,650-2,453-3,035
Net Cashflow859-1,082278

What does the Key Ratio analysis of ECLERX SERVICES reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of ECLERX SERVICES reveals:

  • Operating profit margins witnessed a fall and stood at 28.5% in FY18 as against 34.7% in FY17.
  • Net profit margins declined from 26.6% in FY17 to 21.2% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.0 as compared to 0.0 in FY17.

Here's the ratio/financial analysis of ECLERX SERVICES for the past 3 years.

 FY16FY17FY18
Operating Profit Margin (%)36.634.728.5
Net Profit Margin (%)26.026.621.2
Debt to Equity Ratio (x)0.00.00.0

Read: Latest Annual Report Analysis of ECLERX SERVICES

 

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