Eclerx Posted Disappointing Q4 Result

eClerx Services (eClerx) is a one of the leading knowledge process outsourcing (KPO) companies which provides  middle/back office operations support to over 30 Fortune 500 companies.Founded in 2000 and  publicly listed on both the Bombay and National Stock Exchanges in India since 2007, it's five delivery centers across India support a diverse global client base, including the world’s leading Financial Services, Broadband, Cable & Telco, eCommerce & Retail, High Tech, Industrial Manufacturing & Distribution, Software, Media & Entertainment and Travel companies. Headquartered in Mumbai, India.

Recently announced fourth quarter FY15 result, Total Income From Operations increased by 4 per cent compared to third quarter FY15 to Rs 251 crores from Rs 242 crores. USD revenue increased by 5 per cent .The comparison of the company results on sequential basis, the total expenses increased by 11.34 per cent to Rs 193 crore from Rs 520 crore., because of increased in employee benefit expenses, other expenses and depreciation. The employee cost increased by 5.61 per cent, the other expenses increased by 24.29 per cent. The depreciation increased by 14. 47 per cent because the company revised the estimated useful lives of certain group of fixed assets with effect from April 1, 2014.

The EBITDA  decreased by  10 per cent on sequential basis to Rs 73 crore compared to Rs 81 crore. EBITDA margin decreased by 1347 basis points to 29 per cent. The other income decreased by 15.2 per cent, which reflects in total net profit decreased to Rs 53 crore compared to Rs 61 crore in forth quarter FY15 from third quarter FY15.

The annual performance of the company resulted, 12 per cent growth in total income from operations  to  Rs 942 crore from Rs 841 crore because the acquisition of creative services firm CLX.

The total expenses increased by  29.99 per cent due to increased in employee cost, selling & distribution cost, general and administrative expenses and Depreciation, Interest and Amortization. The employee cost increased by 26.3 per cent due to pay restructuring, change in business mix & increase in benefits. The selling & distribution expenses increased by 29.8 per cent because increase in bonus & commission due to emerging growth and travel. General and administrative expenses increased by 33.48 per cent because of  increase cost mainly due to CLX M&A related cost, increase in CSR expenditure as per change in companies act, change in business mix & facility consolidation. The  Depreciation, Interest and Amortization increased by 51.4 per cent as the depreciation increased due to regulatory changes and addition/consolidation of facility and increased in fixed asset by 7.9 per cent yearly basis.

The EBITDA decreased by 10.74 per cent to Rs 316 crores from Rs 356 crores, the EBITDA margin decreased by 2032 basis points to 33.5 per cent. The Net profit stood at Rs 160 crore compared to Rs 123 crore down by 10.16 per cent in FY15 compared to FY14.