eClerx: Investor Relations
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Investor Relations - FAQs

When did eClerx Services Limited commence operations?  

The company was originally incorporated on March 24, 2000 as eClerx Services Private Limited under the Companies Act, 1956. The company was converted to a public limited company and the name was changed to eClerx Services Limited, pursuant to resolution of the shareholders passed in the annual general meeting held on August 1, 2007.
 
What is eClerx’s area of operations?  
  eClerx provides data analytics and customized process solutions to global enterprise clients from its offshore delivery centers in India. The company’s portfolio of services comprises data analytics, operations management, data audits, metrics management and reporting services. eClerx currently offers its services to clients in the financial services, retail and manufacturing industries.

Financial Services
We are engaged by some of the leading financial services companies to provide specialist support to their capital markets, investment banking and asset management divisions. We have specialized knowledge of financial products and transactions including derivatives and structured products, and their associated data, risk management and processing requirements. We have capabilities in risk management, financial control, confirmations, settlements, valuations, cash flow calculations, reference data research and maintenance and transaction maintenance related to financial transactions.

Retail and Manufacturing
We are engaged by some of the world’s largest retail and manufacturing companies to increase revenues, reduce operating costs and boost profits, across a variety of business functions including marketing, pricing, manufacturing and supply chain management. In particular, we have developed specialized knowledge of optimizing the effectiveness of ecommerce websites. This has helped us penetrate several industries where online platforms dominate such as supermarkets, travel and hospitality, consumer retail, and consumer electronics.
 
 
What differentiates a KPO from a BPO?  
In BPO, the focus is on executing standardized processes, whereas KPO requires processes that demand advanced information searching, analytical interpretation, high-end domain knowledge as well as some judgment and decision making.

Knowledge Process Outsourcing (KPO), also referred to as “Knowledge Services”, is different from the more traditional outsourcing offerings and approaches. It cuts into the traditional “core competencies” of many organizations. Moreover, while cost reduction seems to have been the prime motivator of the ITO and BPO waves, “intellectual arbitrage” seems to be the big KPO advantage. KPOs require the application of specialized domain related knowledge and skill. Therefore, KPO business units provide typical domain-based processes, advanced analytical skills and business expertise, rather than just process knowledge.

As per research done by KPMG, knowledge services also differ from business processes in terms of the value proposition to the client, which leads to a clear demarcation in process complexity, the amount of intellectual intervention in the process, the skills required and the ability to scale. While business processes are essentially process-driven and rule-based, knowledge processes also involve judgment. By outsourcing their core operations to KPO providers (third-party or captive), KPO clients enhance their top line revenues by being able to make different investment decisions and take on more work than would otherwise be the case.
 
 
What has been the past performance of eClerx?
 

FY 2008*

FY 2007

FY 2006

Revenue

873.7

862.34

477.52

EBITDA

372.3

433.64

261.25

PAT

294.2

405.19

240.44

 

     

EPS - Basic

17.70

26.68

15.83

EPS - Diluted

17.24

26.49

15.7

       

EBITDA Margins

42.6%

50.3%

54.7%

Net Margins

33.7%

47.0%

50.4%

*For nine months period from April 2008 to December 2008

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Where are the operational facilities of eClerx located?
We currently operate three facilities in India located at –
Navbharat Estate, Sewri (West)
Raheja Plaza-1, Ghatkopar (West),
Ashok Mills Compound, Ghatkopar (West)

A fourth facility in Hinjewadi, Pune is expected to be operational by April-May 2008.
 
When did eClerx Services Ltd. get listed?
31st December 2007
 
What was the issue size and issue price of the IPO?
Issue size - Rs.101 crores; issue price – Rs. 315
 
 
What was the objective of raising funds through the IPO?

 Particulars

Amt (Rs in Mn)

Acquisitions

                220.00

Infrastructure Investments

                180.00

Setting up of Additional Facilities

                100.00

General Corporate purposes

                161.00

Total

                661.00

Acquisition
As part of our growth strategy, we will continue to selectively consider acquisitions that would expand the scope of our existing services, add new clients or allow us to enter new geographic markets. We are currently exploring options for such acquisitions and strategic investment opportunities. We have acquired the Igentica Group, which introduced us to a client base of global corporations in the travel and hospitality industry.

Infrastructure investments
We have entered into a memorandum of understanding with DLF Akruti Info Parks (Pune) Limited on May 31, 2007 for an area of approximately 74,944 square feet in Hinjewadi, Pune and a seating facility of approximately 900 workstations. The facility will be operational from April 2008.

Setting up of additional facilities
We are exploring opportunities of extending facilities in Chennai, National Capital Region (NCR), Pune and Mumbai, as part of our growth strategy. We believe that Pune and Chennai have the advantage of being relatively low-cost whereas NCR has the advantage of international connectivity and a large pool of managerial talent. An expansion in Mumbai may provide a quicker ramp-up.

General corporate purposes
In accordance with the policies set up by the Board, the Company proposes to retain flexibility in applying the remaining Net Proceeds for general corporate purposes, including strengthening of our marketing capabilities, brand building exercises and up gradation of infrastructure.
 
On which exchanges are the shares of eClerx listed?
BSE and NSE
 
What is the address of registered office of eClerx?  
29 Bank Street, Sonawala Building, Fort , Mumbai 400 023
 
When does eClerx’s financial year end?
31st March