ECLERX SERVICES LTD. ON A GROWING DIGITAL PATHWAY

The Indian IT industry is witnessing a transformation phase where a strong digital trend is increasingly creating new opportunities for the industry players. This puts eClerx in a sweet spot, also on account of its diversification strategy

- 

An Indian IT consulting and outsourcing multinational company, eClerx is based in Mumbai and Pune. It provides critical business operation services to over 50 global Fortune 500 league clients, including some of the world’s leading companies across financial services, cable and telecom, retail, fashion, media and entertainment, manufacturing, travel and leisure, software and high technology. Incorporated in 2000, eClerx is one of India’s leading process management and data analytics’ companies and is today traded on both the Bombay Stock Exchange and the National Stock Exchange. The company employs 8,500+ people across its global sites in the US, UK, India, Italy, Germany, Singapore and Thailand.

Investment Thesis

If we look at the current quarter performance of the company, the Q4 dollar revenue at USD 64 million increased 19.7 per cent QoQ – 19.3 per cent CC of which 6.3 per cent CC was organic growth. While revenue growth has been below the estimates of the analyst fraternity, demand recovery has been faster than expected by the management. The demand uptick was also driven by the incorporation of Personiv and increased utilisation reported at 83.8 per cent. The company saw its employees adjusting and adapting to the ‘work-from-home concept comfortably – leading to increased utilisation. Utilisation increased by 260 bps QoQ while it increased 870 bps YoY even though the attrition shot up to 35.8 per cent. This attrition level was seen in the pre-pandemic levels.