Shares of eClerx hit upper circuit on robust Q1 results
The shares of eClerx Services were trading in the green and surged 20 per cent to hit its intraday high on Thursday, a day after the company came out with its June quarter earnings.
Its consolidated net revenue stood at Rs 336.55 crore in Q1FY21. EBITDA came in at Rs 81.4 crore in Q1FY21, which was up by 25.62 per cent YoY from Rs 64.80 crore in the same period for the previous fiscal year. EBITDA margin stood at 24.19 per cent, which was up by 5.92 per cent YoY.
The company reported consolidated net profit at Rs 51.77 crore, up by 30.04 per cent YoY, as compared to Rs 39.81 crore Q1FY20. The net profit margin in Q1FY21 came in at 15.38 per cent, gaining 4.16 per cent YoY.
eClerx is one of the few companies to have gone ahead with wage hikes and performance bonuses despite revenue contraction. This, along with return-to-office costs, are likely to keep margins remain volatile in the coming quarters. On the other hand, the improving environment is likely to be a tailwind for the company and drive up the revenue.
The stock of eClerx Services was locked at its upper circuit of 20 per cent after which, the trading was suspended at Rs 620.50 per share, up by 20 per cent or Rs 103.40 per share. The stock’s 52-week high is Rs 711.30 and the 52-week low is Rs 323.15 on BSE.