EClerx Q2 – FY24 Concall Notes :
- Good growth QoQ in sales(5.5%) and profit(27.1%) , margins above Q1 (18.8% vs 15.5%)
- Lower Delivery costs causing EBITDA margins to go up
- Financial, capital market compliance & KYC assistance driving fast growth
- Good Q3 expected. Also revised growth upwards. Earlier gave downward margin guidance.
- Europe, luxury post-pandemic hyper-growth is now normalising.
- Generally, Q3, and Q4 margins are mostly in line or better versus the Q2 margin. So, the same trend can be expected.
- No seasonality in product portfolio in Q3
- 900 Cr cash pile up & looking for M&A opportunities. Recently opened new position of M&A head.
- Looking for higher growth by increasing the onshore sales team. This will depress margins but provide growth in the topline
- Growing headcount in line with sales.
- Hiring in 3 different streams, ML researchers, business analysts and the implementation team as well
- Not seeing a major threat from Gen AI at the moment.
- The FY25 picture will be clearer by Q4 FY24.
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