Fwd: eClerx Q2FY12 Result Update; In line show, retain ACCUMULATE; Target: Rs 800

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Deepak Vaishnav

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Oct 22, 2011, 4:09:08 AM10/22/11
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eClerx Services Ltd.

In line show, retain ACCUMULATE

 

ACCUMULATE

 

CMP: Rs 732                                       Target Price: Rs 800

n     Rev at US$ 24.3 mn (+9% QoQ) came in ahead of 7.2% QoQ growth expectations with margins declining by ~30 bps QoQ to 38.9% on a/c of ~130 bps QoQ increase in SG&A expenses

n     Profits at Rs443 mn (+26% QoQ) ahead of est aided by forex gains (Rs 102.3 mn).However, sharp increase in DSO’s over past 2 qtrs to 76(V/s 59 at FY11 end), a disappointment 

n     Non top 5 client revenues grow by ~27% sequentially helping reduce top 5 contribution by ~200 bps QoQ to 86%. Co remains committed to increasing sales/onshore investments

n     Lower currency resets drive a3%/4% raise in FY12/13E EPs to Rs 53.6/63. Retain ACCUMULATE with an unchanged TP of Rs 800

 

Regards,

Manik Taneja

Research Analyst | Emkay Global Financial Services Ltd. | www.emkayglobal.com | Email : manik....@emkayglobal.com 

Board No. : +91-22-66121212 | Extn. : 253 | DID : 66121253 | Mob : +919833934924 |

 

 


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eClerx Q2FY12 Result Update.pdf
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