Why eClerx Services shares fell over 3% today

eClerx Services shares declined more than 3% on Thursday after the company reported its Q4 results, with investors reacting to a marginal decline in net profit and slight pressure on operating margins on a quarter-on-quarter basis.

The company reported consolidated revenue of Rs 1,107 crore for the March quarter, up 3.5% compared with Rs 1,070 crore in the previous quarter.

EBITDA stood at Rs 284 crore, rising 2.7% sequentially from Rs 276 crore in the December quarter. However, EBITDA margin slipped by 20 basis points to 25.6%, compared with 25.8% in the previous quarter.

Net profit declined 1.4% quarter-on-quarter to Rs 189 crore, compared with Rs 192 crore reported in the previous quarter.

The stock witnessed volatility after the earnings announcement. eClerx Services opened at Rs 1,555.50 against the previous close of Rs 1,531.70. During the session, the stock touched a high of Rs 1,580.00 and a low of Rs 1,476.60.

On a 52-week basis, the stock has touched a high of Rs 2,497.50 and a low of Rs 1,282.55.

Overall, eClerx Services shares moved lower as investors focused on the marginal decline in net profit and slight contraction in EBITDA margin, despite steady revenue and EBITDA growth during the quarter.

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