IT stock jumps 9% after company’s net profit increases by 25% QoQ
IT stock jumps 9% after company’s net profit increases by 25% QoQ
One of the small-cap IT stocks engaged in business process management, automation, and analytics services has jumped by 9.14 percent after announcing the quarterly results, which show net profit has grown by 25 percent QOQ.
Stock movement
In Wednesday’s trading session, eClerx Services Limited’s share jumped by 9.14 percent from the previous close of Rs. 3,031.90. The stock opened at Rs. 3,179.95 and is currently trading at Rs. 3,309, with a high of Rs. 3,344.75 and a low of Rs. 2,965.05. The market capitalization now stands at approximately Rs. 15,610.26 crore
Q2 FY25 Result Walkthrough
eClerx Services Limited’s recent quarter saw a rise in revenue and net profits, which led to this bullish movement in the stock price. According to its recent filing, in the quarter ending September 2024, eClerx Services Limited’s revenue from operations has increased by 15.24 percent YOY, from Rs. 722 crore in Q2 FY24 to Rs. 832 crore in Q2 FY25, and up by 6.39 percent QoQ from Rs. 782 crore in Q1 FY25.
eClerx Services Limited’s net profit has increased by 2.94 percent YOY, from Rs. 136 crore in Q2 FY24 to Rs. 140 crore in Q2 FY25. As compared to the last quarters, the company’s net profit is up by 25 percent QoQ from Rs. 112 crore.
eClerx Services Limited’s EBITDA has improved from 45.6 percent in Q1 FY25 to 89.5 percent in Q2 FY25. The company’s capital expenditure has decreased from Rs. 24.4 crore in Q1 FY25 to Rs. 12.7 crore in Q2 FY25.
The company’s EPS has increased by 3.17 percent from Rs. 27.73 in Q1 FY25 to Rs. 28.61 in Q2 FY25.
In terms of return ratios, eClerx Services Limited’s share ROE and ROCE are currently at 25.4 percent and 31.8 percent, respectively. eClerx Services Limited has a debt-to-equity ratio of 0.14x, which shows the company is almost debt-free.
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Shareholding Pattern
eClerx Services Limited has a majority stake held by the promoters at 53.81 percent, foreign institutional investors at 10.31 percent, domestic institutional investors at 24.02 percent, the government at 0.02%, others at 1.42 percent and the public at 10.42 percent as of September 2024
Segment Analysis
eClerx Services Limited operates through three strategic divisions, which include customer operations, digital, and markets, each serving unique business needs. Customer Operations streamlines service delivery throughout the client journey with domain expertise. The Digital division focuses on e-commerce and web operations, while Markets provides consulting and innovation solutions. Each division contributes to eClerx’s comprehensive service portfolio.
Company Overview
eClerx Services Limited delivers critical business operations services across multiple sectors as a leading India-based company. The company transforms business processes through management solutions, data analytics, and smart automation capabilities. The company serves diverse industries including financial services, retail, media, manufacturing, and technology through specialized operational expertise.
Written By- Nikhil Naik
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