eClerx Services , a prominent player in the IT services sector, has recently announced its ambitious growth plans and financial outlook, signaling both opportunities and challenges ahead for the company.

Growth Targets and Annual Contract Value

eClerx Services has set its sights on achieving growth in the top quartile of its industry. The company expects to surpass its previous year's annual contract value (ACV), which stood at approximately INR 140-142 crore. This target underscores the company's confidence in its business model and market positioning.

Q3 Margin Outlook

Despite the optimistic growth projections, eClerx Services has cautioned investors about potential margin pressure in the third quarter. The company anticipates weaker margins in Q3 compared to Q2, primarily attributing this to the recent strengthening of the Indian Rupee.

Currency Impact and Full-Year Forecast

The strengthening of the Indian Rupee is expected to have a short-term impact on the company's financial performance. However, it's worth noting that currency fluctuations are a common challenge for IT services companies with significant international operations.

Despite the expected quarterly margin pressure, eClerx Services maintains a positive outlook for its full-year performance. The company has reaffirmed its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin forecast for the full year, projecting it to be in the range of 24-28%.

Financial Outlook Summary

This balanced outlook from eClerx Services suggests that while the company may face some short-term challenges, it remains confident in its ability to deliver strong full-year results. Investors and market watchers will likely keep a close eye on how the company navigates the anticipated Q3 margin pressure and works towards achieving its ambitious growth targets.

eClerx Services Limited has revised its share buyback program, increasing the buyback price while reducing the number of shares to be repurchased. The Buyback Committee of the Board of Directors approved these changes, maintaining the total buyback value at ₹3,000 million.

Revised Buyback Parameters

Key Buyback Features

The buyback will be conducted through a tender offer route with specific provisions for different shareholder categories. Small shareholders have 15% of the shares reserved for them, while promoters and promoter group members will not participate in the buyback process.

Current Shareholding Structure

The company's shareholding pattern shows promoters holding a majority stake, with public shareholders comprising the remaining portion.

Regulatory Compliance and Publication

The company has informed BSE Limited and National Stock Exchange of India Limited about the price revision under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. An addendum to the public announcement will be published in Business Standard (English and Hindi editions) and Mumbai edition of Navshakti, and will be available on the company's website.

The price increase from ₹4,500 to ₹4,800 per share represents a 6.67% enhancement in the offer price, potentially making the buyback more attractive to shareholders. The corresponding reduction in share count from 666,666 to 625,000 shares ensures the total buyback value remains unchanged at ₹3,000 million. Shareholders eligible for participation will be determined based on the record date of December 17, with the buyback period scheduled from December 22-29.