eClerx - Q2 FY2013 Result Update - SPA Securities

eClerx reported 6.1% Q2FY13 revenue growth at $29.8mn (SPAe: $30.4mn) on the back of 4.6% inorganic growth through Agilyst and 1.5% organic growth. Its EBIT Margins declined by 490bps to 32.4% sequentially on the back of higher employee and amortization cost. PAT margins came down to 15.6% from 33.5% in Q1FY13, cumulatively affected due to decrease in EBIT margins coupled with other income loss of INR 187mn.

Thus, we have adjusted our FY13 EPS to inculcate this drop. However, we expect FY14 numbers to be inline with our existing estimates on the back of strong order pipeline.

We continue to recommend BUY with a 18-month TP of INR 874.0.

Source : Equity Bulls

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