eClerx Services hits record high as Q1 profit beats estimates

The stock rallied 11% to Rs 1,768, also its record high on the BSE.

eClerx Services has rallied 11% to Rs 1,768, also its record high on the BSE, after reporting a better-than-expected consolidated net profit at Rs 73.24 crore for the first quarter ended June 30, 2015 (Q1).

The mid-sized software company, engaged in the knowledge process outsourcing (KPO) business, had posted a profit of Rs 53.18 crore in the March 2015 quarter. It had reported a profit of Rs 53.40 crore in the June 2014 quarter.

Income from operations in the quarter stood at Rs 298 crore against Rs 251 crore in the previous quarter.

Analysts on an average had expected net profit of Rs 63 crore on revenues of Rs 296 crore.

The company has acquired the entire shareholding of CLX Europe S.P.A, a joint stock company based in Italy, with effect from April 22, 2015 through its overseas subsidiary eClerx Investment (UK) for a consideration of Euro 175.73 lakhs.

Meanwhile, the company reported other income of Rs 15.92 crore in the June quarter, mainly on account of forex gains of Rs 11.20 crore. It had posted other income of Rs 9.65 crore in the preceding quarter.

Till 09:57 AM, a combined 103,360 shares changed hands on the counter on the BSE and NSE.