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eClerx Q4FY21: Will be able to maintain 30% of EBITDA despite wage hike, says management

Updated : June 11, 2021 13:50:09 IST

eClerx stock locked at 20 percent upper circuit post its strong Q4FY21 results boosted by the Personiv acquisition. The company reported a margin of 27.1 percent which is the highest in 4 years.

Speaking to CNBC-TV18, Rohitash Gupta, CFO of the company, said that there will be wage hikes in the current quarter which will have a 200 basis points impact on EBITDA.

“The only headwind on the margin side will be the wage hikes that were effective from April 1 for our global staff. Wage hikes impact could be about 200 basis points on EBITDA levels. Wage hikes are pretty normal in terms of mid-single digits -- depending upon geography, it can move up or down,” he said.

However, he believes that the company will be able to maintain 30 percent of EBITDA despite the wage hike.

Also Read: eClerx Services hits 52-week high; shares locked in 20% upper circuit on stellar earnings

Gupta also said that H2 revenue benefitted from pent-up demand. However, he believes that it will be difficult to sustain that and expects modest growth in the near future.

“As you would have seen with other companies also, there was a pent-up demand which unfolded in H2 and that kind of sequential growth momentum is hard to maintain. But we do see some modest amount of growth in the near future,” he said.

The company continues to look for newer modest-sized acquisitions, he added.

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