eClerx Services - Healthy results in uncertain times - Edelweiss

eClerx's Q3FY13 revenues at USD31.3mn (QoQ growth of 5%) were higher than the Street estimate of USD31.0mn. PAT at INR490mn was significantly higher than our estimate of INR433mn, largely due to higher operating profits and lower tax rate (16.3% vs. 25.3% in Q2FY13).

The management reiterated organic growth would remain soft owing to regulatory changes that are impacting clients' businesses. Even as organic growth remains soft in near term, we believe the long term story remains intact for eClerx owing to its cost-focused business model.

At P/E of 8.6x FY14E, we maintain 'BUY'.

Source : Equity Bulls

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