eClerx Services (ECLERX) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 operating revenue reached INR 8,752 million ($100.7 million), up 3.6% sequentially and 14.6% year-over-year, driven by digital and financial markets growth.

• Net profit for Q3 FY25 was INR 1,371 million, up 2.1% year-over-year but down 2.3% sequentially.

• ACV of deal wins for the quarter was $33 million, with a healthy and growing pipeline across service lines.

• Strategic initiatives included geo-diversification with a new subsidiary in Peru, expansion in Manila, and a major equity buyback of 1,375,000 shares at INR 2,800 per share.

• Recognized as a major contender in BFS operations and received ISO 42001 AI management certification, among the first five global companies to achieve this.

Financial highlights

• EBITDA margin for Q3 FY25 was 26.1%, with PAT at 15.7%; EBITDA was $22.81 million, flat sequentially and year-over-year.

• EPS for Q3 FY25: Basic INR 29.16, Diluted INR 28.55.

• Total consolidated cash and cash equivalents at INR 9,358 million, up from INR 8,359 million in Q2.

• Net operating cash flow for Q3 FY25 was INR 1,794.3 million.

• DSO increased to 83 days from 77 in the previous quarter.

Outlook and guidance

• Expectation of better Q4 performance as roll-ups have normalized and deal pipeline remains strong.

• Margin guidance remains at 24%-28%, with continued investments in growth and new centers.

• Cautiously optimistic outlook, with focus on cross-sell, technology, and large deals.

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

• No significant change in deal tenure or nature; pipeline remains healthy and broad-based.