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Eclerx Services stock skyrockets to record high after upbeat Q2 earnings show

The rise in eClerx shares was in line with the broader rally in information technology stocks, fueled by optimism surrounding Donald Trump's potential return as US president.

November 06, 2024 / 13:24 IST
The surge in the stock today was also triggered by heavy trading volumes as 10 lakh shares already changed hands till now.

The surge in the stock today was also triggered by heavy trading volumes as 10 lakh shares already changed hands till now.

 
 
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Shares of eClerx Services surged as much as 10 percent on November 6 and scaled a new peak of Rs 3,345.30 after the company's upbeat quarterly earnings bolstered sentiment. For the July-September quarter, eClerx reported a 5.9 percent sequential growth in revenue in dollar terms at $98.8 million, while the growth in constant currency terms stood at 5.7 percent.

Net profit for the September quarter also grew to Rs 139.5 crore, up from Rs 112 crore in the previous quarter and Rs 135.1 crore in the same period last fiscal.

Meanwhile, operational performance EBIT margin for the quarter swelled to 22 percent, up from 17.2 percent at the end of the previous quarter.

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New deal wins during Q2 grew by 8.2 percent from the June quarter, coming at $28.9 million. However, on a year-on-year basis, new deal wins were down by 1.7 percent.

The rise in eClerx shares was in line with the broader rally in information technology stocks, fueled by optimism surrounding Donald Trump's potential return as US president.

"The US has significant work to do in sectors like banking and healthcare, which are currently underpenetrated. Manufacturing is also facing challenges. So, there's an anticipation of IT project spending to pick up," said Rishubh Vasa, Research Analyst at Indsec Securities & Finance.

At 1.17 pm, shares of eClerx Services were trading at Rs 3,249 on the NSE, though firm in the green by off its record high. Furthermore, the surge in the stock today was also triggered by heavy trading volumes as 10 lakh shares already changed hands till now, far higher than the one month daily traded average of one lakh shares.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Moneycontrol News
first published: Nov 6, 2024 01:24 pm

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