eClerx Services - Inline operating performance - Emkay

- eClerx's June'12 results were exactly inline with revenues at US$ 28.1 mn (+10.2% QoQ) and margins improving by ~170 bps sequentially to 38.4% aided by currency depreciation

- Organic business grows by ~1.5% QoQ in c.c terms (vol growth of 3-4% QoQ). Mgmt sees pickup in organic business with majority of volume led pricing resets reflected in Q1

- Improvement in Agilyst's financial performance ahead of initial expectations as company has won a marquee client during Q1, with margins being aided by weak currency

- Tweak FY13/14E EPS higher by 0.4%/0.6% to Rs 59.2/72.7 driven by Q1 beat despite higher tax rate assumptions. Retain ACCUMULATE, TP Rs 760.

Source : Equity Bulls

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