eClerx Services (ECLERX) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 operating revenue reached USD 98.8 million (INR 8,318–8,447 million), up 6% sequentially and 12.8–15.4% year-on-year, driven by strong growth in financial markets and customer operations.

• EBITDA margin improved to 27.1%, with PAT at INR 1,402 million and a margin of 16.6–16.9%.

• Net profit for Q2 FY25 rose 25.7% quarter-over-quarter and 3.9% year-over-year.

• Analytics and automation business grew 10% sequentially to USD 19 million.

• ACV of deal wins was USD 28.9 million, though higher roll-offs in Q2 will impact Q3.

Financial highlights

• Total revenue for the quarter was INR 8,447 million, up 5.2% sequentially and 14.8–15.4% YoY.

• EBITDA of INR 2,288–2,523 million rose 22% sequentially and 4.5% YoY.

• PAT increased 26% sequentially and 3.9% YoY.

• Basic EPS for Q2 FY25 was INR 29.66, up from INR 23.13 in Q2 FY24.

• Net operating cash flow for Q2 FY25 was INR 2,048.1 million, with EBITDA conversion at 89.5%.

Outlook and guidance

• Medium- to long-term growth momentum remains positive, with a strong pipeline and ongoing cross-sell and upsell strategies.

• Full-year EBITDA margin guidance remains at 24% to 28%, with sequential EBITDA growth expected.

• Q3 and Q4 may see lower growth than Q2 due to roll-offs, but overall outlook is positive.

• Management notes forward-looking statements are subject to risks and uncertainties, including integration of acquisitions and economic conditions.