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ECLERX SERVICES Announces Quarterly Results (3QFY21); Net Profit Up 1.6%

Fri, 29 Jan

ECLERX SERVICES has announced its results for the quarter ended December 2020. Here is a detailed performance review of the same:

ECLERX SERVICES Quarterly Financials

No. of Mths Qtr. Ending		3 Dec-19*	3 Sep-20*	3 Dec-20*	QoQ Change	YoY Change
Net Sales	Rs m	3,755	3,608	3,943	9.3%	5.0%
Other income	Rs m	117	57	89	56.9%	-24.2%
Turnover	Rs m	3,872	3,665	4,032	10.0%	4.1%
Expenses	Rs m	2,725	2,587	2,822	9.1%	3.6%
Gross profit	Rs m	1,029	1,020	1,121	9.8%	8.9%
Depreciation	Rs m	176	196	202	3.1%	15.1%
Interest	Rs m	48	49	48	-2.3%	0.2%
Profit before tax	Rs m	923	832	959	15.4%	4.0%
Tax	Rs m	222	217	247	13.9%	11.5%
Profit after tax	Rs m	701	615	712	15.9%	1.6%
Gross profit margin	%	27.4	28.3	28.4
Effective tax rate	%	24.0	26.1	25.8
Net profit margin	%	18.1	16.8	17.7

Year-on-Year Performance:

• The company's operating income during the quarter grew 5.0% on a year-on-year (YoY) basis. The expenses were up by 3.6% YoY during the same period.
• The company's operating profit increased by 8.9% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 28.4% in 3QFY21 as against 27.4% in 3QFY20.
• Depreciation charges increased by 15.1% and finance costs increased by 0.2% YoY, respectively.
• Other income declined by 24.2% YoY during the quarter.
• Net profit for the quarter increased by 1.6% YoY. Net profit margins during the quarter declined from 18.1% in 3QFY20 to 17.7% in 3QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 9.3% on a quarter-on-quarter (QoQ) basis. The expenses were up by 9.1% QoQ during the same period.
• The company's operating profit increased by 9.8% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 28.4% in 3QFY21 as against 28.3% in 2QFY20.
• Net profit for the quarter increased by 15.9% QoQ, while net profit margins increased from 16.8% in 2QFY20 to 17.7% in 3QFY21.

To see how ECLERX SERVICES has performed over the last eight quarters,please visit here.

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ECLERX SERVICES Share Price Performance

Over the last one year, ECLERX SERVICES share price has moved up from Rs 666.3 to Rs 987.0, registering a Gain of Rs 320.7 or around 48.1%.

Meanwhile, the S&P BSE IT Index is trading at Rs 25,380.1 (down 0.3%). Over the last one year it has moved up from 16,233.5 to 25,380.1, a gain of 9,147 points (up 56.3%).

Overall, the S&P BSE SENSEX is up 14.1% over the year.

Current Valuations

At the current price of Rs 987.0, the price to earnings (P/E) ratio of ECLERX SERVICES stands at 16.6 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 3.3 times.