Shares of eClerx Services declined more than 3% in Thursday’s trade after the company reported its Q4 results, with investors reacting to a marginal decline in profitability and softer margin performance on a quarter-on-quarter basis.
The company posted consolidated revenue of Rs 1,107 crore for the March quarter, registering a 3.5% rise compared to Rs 1,070 crore reported in the previous quarter.
EBITDA came in at Rs 284 crore, up 2.7% sequentially from Rs 276 crore. However, EBITDA margin slipped 20 basis points to 25.6% versus 25.8% in the December quarter, indicating mild pressure on operating profitability.
Net profit for the quarter declined 1.4% to Rs 189 crore, compared to Rs 192 crore reported in the previous quarter.
The muted profit growth and slight contraction in margins weighed on investor sentiment, leading to selling pressure in the stock despite steady revenue expansion.
Stock Performance
The stock witnessed volatility after the earnings announcement.
- Today’s high: Rs 1,580.00
- Today’s low: Rs 1,476.60
- Opening price: Rs 1,555.50
- Previous close: Rs 1,531.70
- 52-week high: Rs 2,497.50
- 52-week low: Rs 1,282.55
The decline in profitability and slight contraction in operating margin appeared to dampen investor sentiment despite steady revenue growth.