Shares of eClerx Services surged almost 9 percent on Friday after the company declared decent results for the quarter ended March 2023 (Q4FY23).
The company's consolidated net profit rose 11.6 percent to ₹132.5 crore for the quarter under review from ₹118.7 crore in the year-ago period. Its consolidated revenue from operations also jumped 16 percent to ₹698 crore versus ₹601 crore in the corresponding period last year.
However, sequentially, the company reported flattish revenue numbers in Q4 with revenue up just 0.6 percent QoQ in dollar terms to $85.6 million. In constant currency terms as well, the revenue growth was flat. In rupee terms, the revenue came at ₹693.1 crore, up 0.9 percent QoQ.
The stock rose as much as 8.9 percent to its day's high of ₹1,534. It has gained 10 percent in 2023 YTD, however, in the last 1 year, the stock is up just 1.2 percent.
It has jumped 12 percent just in May, on the back of March quarter earnings after a 5 percent gain in April. However, it shed 7.5 percent and 4 percent in March and Feb, respectively. Meanwhile, in Jan, the stock rallied 13.5 percent.
Overall in FY23, the company's net profit increased 17 percent to ₹488.8 crore as against ₹417.4 crore in FY22. Meanwhile, its total revenue in FY23 came in at ₹2,713.8 crore, up 24 percent from ₹2,184.9 crore in FY22.
"The company had indicated in Q3 that they are expecting some softness in the near term and it is playing out now. The performance of the top 10 customers (59 percent of revenue mix) is the key where the weak performance continues for a couple of quarters now (8.6 percent YoY growth in Q4FY23 vs average >20 percent growth in last few quarters). A similar pattern is visible for thetop 5 customer’s performance (40 percent of mix) where the pick is critical for better growth ahead. The performance on margins was satisfactory as they ended at the middle of the guided band compared to their guidance of ending at the lower end," ICICI Direct said in a report.
