eClerx Services Reports Strong Q2 Results, Announces 3 Billion Rupee Share Buyback
eClerx Services reported robust Q2 financial performance with revenue reaching 10.05 billion rupees, up 20.8% YoY. EBITDA grew 28.1% to 2.98 billion rupees, with margin expanding to 28.8%. Net profit increased 30.6% to 1.83 billion rupees. The company also announced a share buyback program of up to 3 billion rupees at 4,500 rupees per share via tender offer route.
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eClerx Services , a leading data management and analytics solutions provider, has reported robust financial performance for the second quarter, coupled with the announcement of a significant share buyback program.
Strong Financial Performance
The company's consolidated financial results for Q2 showcase impressive growth:
| Metric | Q2 | YoY Growth |
|---|---|---|
| Revenue | 10.05 billion rupees | 20.8% |
| EBITDA | 2.98 billion rupees | 28.1% |
| Net Profit | 1.83 billion rupees | 30.6% |
| EBITDA Margin | 28.8% | 399 bps |
eClerx Services' revenue for the quarter reached 10.05 billion rupees, marking a substantial year-over-year increase of 20.8%. The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew by 28.1% to 2.98 billion rupees, with the EBITDA margin expanding by 399 basis points to 28.8%.
Net profit for the quarter saw a significant jump of 30.6%, reaching 1.83 billion rupees. This strong bottom-line growth underscores the company's operational efficiency and ability to translate revenue gains into profitability.
Share Buyback Program
In a move that signals confidence in its financial position and commitment to enhancing shareholder value, eClerx Services' Board of Directors has approved a share buyback program. The key details of the buyback are as follows:
- Total buyback size: Up to 3 billion rupees
- Buyback price: 4,500 rupees per share
- Method: Tender offer route
The buyback represents 21.08% of the aggregate of the company's total paid-up equity share capital and free reserves based on the standalone financial statements as of March 31, 2025. On a consolidated basis, it accounts for 13.80% of the same metrics.
Market Position and Future Outlook
eClerx Services continues to strengthen its position in the data management and analytics solutions sector. The company's robust financial performance, coupled with the share buyback announcement, may be interpreted as a sign of management's confidence in the company's future prospects and its commitment to returning value to shareholders.
The increase in revenue and profitability suggests that eClerx Services is successfully capitalizing on the growing demand for data-driven solutions across various industries. As businesses increasingly rely on data analytics for decision-making, companies like eClerx Services are well-positioned to benefit from this trend.
Conclusion
eClerx Services' strong Q2 results, characterized by double-digit growth in revenue and profitability, along with the announcement of a substantial share buyback program, paint a positive picture for the company. As the demand for data management and analytics solutions continues to grow, eClerx Services appears to be in a strong position to capitalize on market opportunities and deliver value to its shareholders.
Historical Stock Returns for eClerx Services
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.37% | +9.26% | +8.47% | +67.48% | +59.72% | +839.41% |
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