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eClerx Services Limited Annual Report 2021
62118_rns_2021-06-10_aa6e7f10-6013-4a71-b4c2-2ac607d773a7.pdf
Annual Report
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eClerx
eClerx/SECD/SE/2021/028
June 10, 2021
| BSE Limited | National Stock Exchange of India Limited |
|---|---|
| Corporate Relationship Department, | Exchange Plaza, Plot No. C/1, |
| Phiroze Jeejeebhoy Towers, | Block G, Bandra - Kurla Complex |
| 25th Floor, Dalal Street, | Bandra (East), |
| Fort, Mumbai - 400 001 | Mumbai - 400 051 |
Dear Sirs,
Sub: Outcome of Board Meeting held on Thursday, June 10, 2021
Scrip Code: BSE- 532927 NSE-ECLERX
This is to inform you that the Board of Directors of the Company at its meeting held on June 10, 2021, which commenced at 3.15 p.m. and concluded at 5.20 p.m., inter-alia, unanimously transacted the following business:
- Approved the Standalone and Consolidated Audited Financial Results of the Company for the quarter and financial year ended March 31, 2021.
The Audited Financial Results (Standalone and Consolidated) along with the Audit Reports, Declaration on Unmodified Opinion on Auditors' Report, the earnings presentation and other relevant documents are attached for your records. Further, please note that since Stock Exchange(s) portal for online submissions does not accept excel documents, we have made the "Investor Sheet" available on our website under the "Investor Relations" section.
- Recommended Dividend of Re. 1 /- per equity share of Rs. 10/- each for the financial year ended March 31, 2021, subject to the approval of the shareholders at the ensuing Annual General Meeting (AGM) of the Company.
The Company shall inform the Stock Exchange(s) in due course about the date of AGM for financial year ended March 31, 2021, dates of book closure for purpose of entitlement of final dividend and date from which the dividend will be paid, if approved by shareholders.
Corporate Office eClerx Services Limited 4th Floor, Express Towers, Nariman Point, Mumbai - 400 021 Ph: +91 (022) 6614 8301 I Fax : + 91 (022) 6614 8655 www.eClerx.com
Registered Office eClerx Services Limited Sonawala Building, 1st Floor, 29 Bank Street, Fort, Mumbai - 400 023, Maharashtra, India. Ph: +91 (022) 6614 8301 I Fax: +91 (022) 6614 8655 E-mail ID: [email protected] I www.eClerx.com [CIN: L72200MH2000PLC125319]
In addition to this, the Nomination and Remuneration Committee of the Board of Directors of the Company granted 3,62,500 options (constituting 1.04% of the existing paid up share capital of the Company) to the employees of the Company and its subsidiary(ies), under ESOP 2015 Scheme/Plan at an exercise price of Rs. 1,225.48/- per option.
This is for your information and records.
Thanking you,
Yours faithfully For eClerx Services Limited
tJ · f.~
Pratik Bhanushali Company Secretary and Compliance Officer F8538
Encl: as above
eClerx
eClerx/SECD/SE/2021/029
June 10, 2021
| BSE Limited | National Stock Exchange of India Limited |
|---|---|
| Corporate Relationship Department, | Exchange Plaza, Plot No. C/1, |
| Phiroze Jeejeebhoy Towers, | Block G, Bandra - Kurla Complex |
| 25th Floor, Dalal Street, | Bandra (East), |
| Fort, Mumbai - 400 001 | Mumbai - 400 051 |
Dear Sirs,
Sub: Declaration pursuant to Regulation 33(3)(d) of the Securities & Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015
Stock Code: BSE -532927 NSE- ECLERX
In terms of the provisions of Regulation 33(3)(d) of the Securities & Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, and other applicable provisions, we hereby state that the Statutory Auditor of the Company M/s. S.R. Batliboi & Associates LLP (Registration No. 101049W/E300004) have issued an Audit Report with unmodified opinion on the Audited Financial Results of the Company {Standalone and Consolidated) for the quarter /financial year/period ended March 31, 2021.
This declaration is for your information and records.
Thanking you,
Yours faithfully Foi;IJ' um;ted
Pratik Bhanushali Company Secretary and Compliance Officer F8538
Corporate Office eClerx Services Limited 4th Floor, Express Towers, Nariman Point, Mumbai - 400 021 Ph: +91 (022) 6614 8301 I Fax:+ 91 (022) 6614 8655 www.eClerx.com
Registered Office eClerx Services Limited Sonawala Building, 1st Floor, 29 Bank Street, Fort, Mumbai - 400 023, Maharashtra, India. Ph: +91 (022) 6614 8301 I Fax: +91 (022) 6614 8655 E-mail ID: [email protected] I www.eClerx.com [CIN: L72200MH2000PLC125319]
S.R. BATUBOI & ASSOCIATES LLP
Chartered Accountants
12th Floor, The Ruby 29 Senapati Bapat Marg Dadar (West) Mumbai - 400 028, India
Tel: +91 22 6819 8000
Independent Auditor's Report on the Quarterly and Year to Date Audited Standalone Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended
To
Board of Directors of eClerx Services Limited
Report on the audit of the Standalone Financial Results
Opinion
We have audited the accompanying statement of quarterly and year to date standalone financial results of eClerx Services Limited (the "Company") for the quarter ended March 31, 2021 and for the year ended March 31, 2021 ("Statement"), attached herewith, being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the "Listing Regulations").
In our opinion and to the best of our information and according to the explanations given to us, the Statement:
- i. is presented in accordance with the requirements of the Listing Regulations in this regard; and
- ii. gives a true and fair view in conformity with the applicable accounting standards and other accounting principles generally accepted in India, of the net profit and other comprehensive income and other financial information of the Company for the quarter ended March 31, 2021 and for the year ended March 31, 2021 .
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(1 O) of the Companies Act, 2013, as amended ("the Act"). Our responsibilities under those Standards are further described in the "Auditor's Responsibilities for the Audit of the Standalone Financial Results" section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our opinion.
Management's Responsibilities for the Standalone Financial Results
The Statement has been prepared on the basis of the standalone annual financial statements. The Board of Directors of the Company are responsible for the preparation and presentation of the Statement that gives a true and fair view of the net profit and other comprehensive income of the Company and other financial information in accordance with the applicable accounting standards prescribed under Section 133 of the Act read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the
S.R. BATLIBOI & ASSOCIATES LLP
Chartered Accountants eClerx Services Limited Independent auditor's report
preparation and presentation of the Statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the Statement, the Board of Directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Company's financial reporting process.
Auditor's Responsibilities for the Audit of the Standalone Financial Results
Our objectives are to obtain reasonable assurance about whether the Statement as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the Statement.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the Statement, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.
- Conclude on the appropriateness of the Board of Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial results or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the Statement, including the disclosures, and whether the Statement represents the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
S.R. BATLIBOI & ASSOCIATES LLP
Chartered Accountant s eClerx Services Limited Independent auditor's report
Other Matter
The Statement includes the results for the quarter ended March 31, 2021 being the balancing figure between the audited figures in respect of the full financial year ended March 31, 2021 and the published unaudited year-to-date figures up to the third quarter of the current financial year, which were subjected to a limited review by us, as required under the Listing Regulations.
For S.R. Batliboi & Associates LLP Chartered Accountants ICAI Firm Registration Number: 101049W/E300004
VINEET KEDIA
Digitally signed by VINEET KEDIA DN: cn=VtNEET KEDIA, c=IN, o=Personal, email=[email protected] Date: 2021 .06.10 16: 16: 11 +05'30'
per Vineet Kedia Partner Membership No.: 212230 UDIN: 21212230AAAABS9189 Mumbai June 10, 2021
ECLERX SERVICES LIMITED CIN: L72200MH2000PLC125319 Regd. Office : Sonawala Building, 1st Floor, 29, Bank Street, Fort, Mumbai - 400 023
STATEMENT OF STANDALONE AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED MARCH 31, 2021
| (Rupees in million except per share data) | |||||||
|---|---|---|---|---|---|---|---|
| Quarter ended | Year ended | ||||||
| Sr.No. | Particulars | March 31,2021 | December 31,2020 | March 31,2020 | March 31,2021 | March 31,2020 | |
| Audited* | Unaudited | Audited* | Audited | Audited | |||
| I | Revenue from operations | 3,295.24 | 3,091 .28 | 2,782.39 | 11 ,974.01 | 11 ,201.67 | |
| II | Other income | 76.22 | 103.77 | 198.27 | 393.84 | 540.01 | |
| Ill | Total Income (I+ II) | 3,371.46 | 3,195.05 | 2,980.66 | 12,367.85 | 11,741.68 | |
| IV | Expenses | ||||||
| Employee benefits expense | 1,247.15 | 1,249.53 | 1,215.64 | 4,796.21 | 4,844.92 | ||
| Depreciation and amortisation expense | 130.63 | 130.98 | 113.70 | 500.04 | 445.93 | ||
| Cost of technical sub-contractors | 89.38 | 87.82 | 54.58 | 303.38 | 199.54 | ||
| Sales and marketing services | 544.99 | 654.32 | 591.80 | 2,246.41 | 2,455.33 | ||
| Other expense | 259.29 | 259.94 | 329.15 | 1,093.50 | 1,297.76 | ||
| Finance cost | 44.00 | 45.90 | 46.56 | 183.62 | 176.62 | ||
| Total expenses (IVI | 2,315.44 | 2,428.49 | 2,351.43 | 9,123.16 | 9,420.10 | ||
| V | Profit before exceptional items and tax (Ill-IV) | 1,056.02 | 766.56 | 629.23 | 3,244.69 | 2,321 .58 | |
| VI | Exceptional items (Refer note 8) | - | - | 43.46 | - | 488.40 | |
| VII | Profit before tax (V-VII | 1,056.02 | 766.56 | 585.77 | 3,244.69 | 1,833.18 | |
| VIII | Tax expense | 272.50 | 195.41 | 148.47 | 855.65 | 597.47 | |
| (1) Current tax | 285.25 | 229.12 | 150.18 | 877.44 | 584.63 | ||
| I (2) Deferred tax | (12.75) | (33.71) | (1.71) | (21 .79) | 12.84 | ||
| IX | Profit for the period (VII-VIII) | 783.52 | 571.15 | 437.30 | 2,389.04 | 1,235.71 | |
| X | Other Comprehensive Income I (Loss) ('OCI') | 24.16 | 97.67 | (324.63) | 429.21 | (418.29) | |
| A (i) Items that will not be reclassified to profit or loss | 10.56 | (14.32) | 18.28 | (32.01) | (17.48) | ||
| (ii) Income tax relating to items that will not be reclassifiedto profit or loss | (2.65) | 3.60 | (4.81) | 8.06 | 4.11 | ||
| B (i) Items that will be reclassified to profit or loss (net) | 21 .72 | 144.84 | (452.51) | 605.57 | (548.35) | ||
| (ii) Income tax relating to items that will be reclassified toprofit or loss | (5.47) | (36.45) | 114.41 | (152.41) | 143.43 | ||
| XI | Total Comprehensive Income for the period (IX+X)(Comprising Profit and Other Comprehensive Income for | 807.68 | 668.82 | 112.67 | 2,818.25 | 817.42 | |
| the period) | |||||||
| XII | Paid up equity share capital | ||||||
| l(Face value of Rs. 10 each, fully paid up) | 348.90 | 348.90 | 369.83 | 348.90 | 369.83 | ||
| XIII | Other equity | 12,187.91 | 10,743.24 | ||||
| XIV | Earnings per share: (in Rs.) | ||||||
| (1) Basic | 22.46 | 16.37 | 11 .82 | 67.29 | 33.05 | ||
| I (2) Diluted | 22.28 | 16.29 | 11 .82 | 67.03 | 33.05 | ||
| *Refer note 3 |
Notes:
- The statement of audited financial results for the quarter and year ended March 31, 2021 have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on June 10, 2021. There are no qualifications in the audit report issued by the auditors.
- 2 These financial results have been prepared in accordance with the Indian Accounting Standards {Ind AS) prescribed under Section 133 of the Companies Act, 2013, read with the relevant rules issued thereunder.
- 3 The figures for the three month period ended March 31 , 2021 and March 31, 2020 are the balancing figures between audited figures in respect of the full financial year ended March 31, 2021 and March 31 , 2020 respectively and unaudited published year- to-date figures up to December 31, 2020 and December 31, 2019 respectively, being the end of the third quarter of the respective financial years, which were subject to limited review.
- 4 The Company has considered the possible effects that may result from the pandemic relating to COVID-19 on the carrying amounts of receivables, unbilled revenue, investment in subsidiaries, intangible assets, other financial assets, revenues and costs, leases and its hedging program. In assessing the recoverability of its assets, the Company has used internal and external sources of information up to the date of approval of these standalone financial results and expects to recover the net carrying amount of its assets. The Company also expects the demand for services to remain volatile for some more time. However, the actual impact of COVID-19 on the Company's financial statements may differ from that estimated and the Company will continue to closely monitor any material changes to future economic conditions.
- 5 The Company operates under a single reportable segment which is data management, analytics solutions and process outsourcing services. Further, the risks and rewards under various geographies where the Company operates are similar in nature.
- 6 The Company has acquired the entire shareholding of Eclipse Global Holdings LLC {dba Personiv) headquartered in Austin, Texas, USA on December 23, 2020 through investment in its overseas subsidiary eClerx LLC, USA, for an estimated purchase consideration of Rs 2,530.39 million (USD 34.27 million) including earn-out considerations over two years.Personiv provides digital, creative, back office and customer contact solutions.
- 7 The Board of Directors vide their meeting dated July 06, 2020 approved buyback of equity shares of the Company for an aggregate amount not exceeding Rs. 1,095 million at a buyback price not exceeding Rs. 550 per equity share from the shareholders/beneficial owners of the company {other than those who are Promoters, members of Promoter Group and persons in control of the Company). The Company bought back 2,093,815 equity shares of Rs 10 each at an average price of Rs. 522.97 per share amounting to Rs. 1,095 million and concluded the said buyback on July 22, 2020. The shares so bought back were extinguished and the issued and paid up capital stands amended accordingly. Further, the Company has incurred buy back expenses of Rs. 9.47 million and buy back tax of Rs. 243 million which have been charged to retained earnings.
- 8 The Company has appointed Eclerx Employee Welfare Trust {ESOP Trust) to administer the employee stock option scheme. For this purpose, the ESOP Trust borrowed funds from the Company and purchased the Company's shares from the open market since financial year 2016-17 for the purpose of alloting the same to eligible employees. Due to significant difference between the purchase price of these shares and exercise price of the share options / market price of shares, the Company forsees the inability of the ESOP Trust to service it's loan obligations. Hence, the Company made a total provision of Rs 488.40 million and Rs 43.46 million in the results for the previous year ended March 31, 2020 and quarter ended March 31, 2020 respectively.
- 9 The Company through its subsidiary Eclerx Investments {UK) limited, incorporated Eclerx B.V. in May 2020 having its registered office in Amsterdam.
- 1 o The Code on Social Security, 2020 relating to employee benefits during the employment and post- employment benefits received President's assent on September 28, 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified. The Company will assess and record the impact of the Code, if any, when it becomes effective.
- 11 The Board of Directors have recommended a dividend of Re. 1 per Equity Share of Rs. 1 O each for the financial year 2020-21
12 Statement of assets and liabilities
| (Rupees in million) | |||
|---|---|---|---|
| As at | As at | ||
| March 31 , | March 31, | ||
| Particulars | 2021 | 2020 | |
| Audited | Audited | ||
| A. ASSETS | |||
| 1. Non current assets | |||
| Property, plant and equipment | 530.00 | 542.89 | |
| Right of use assets | 915.17 | 1,018.66 | |
| Capital work-in-progress | - | 2.65 | |
| Intangible assets | 37.87 | 28.57 | |
| Financial assets | |||
| Investments | 4,844.79 | 2,373.22 | |
| Derivative instruments | 25.53 | - | |
| Long term loans | 711 .60 | 711 .60 | |
| Other financial assets | 164.35 | 116.36 | |
| Deferred tax assets (net) | 240.26 | 362.83 | |
| Other non-current assets | 35.39 | 191 .88 | |
| Non-current tax assets (net) | 104.66 | 103.41 | |
| 7,609.62 | 5,452.07 | ||
| 2. Current assets | |||
| Financial assets | |||
| Investments | 2,282.30 | 4,363.78 | |
| Trade receivables | 1,943.06 | 1,714.14 | |
| Cash and cash equivalents | 1,382.35 | 621.87 | |
| Other bank balance | 1,111.10 | 1,584.25 | |
| Other financial assets | 879.46 | 1,011.52 | |
| Derivative instruments | 239.03 | - | |
| Other current assets | 515.39 | 412.46 | |
| 8,352.69 | 9,708.02 | ||
| TOT AL - ASSETS | 15,962.31 | 15,160.09 | |
| B. EQUITY AND LIABILITIES | |||
| 1. Equity | |||
| Equity share capital | 348.90 | 369.83 | |
| Other equity | 12,187.91 | 10,743.24 | |
| 12,536.81 | 11 ,113.07 | ||
| 2. Non current liabilities | |||
| Financial liabilities | |||
| Lease liabilities | 1,024.37 | 1,123.52 | |
| Derivative instruments | - | 96.63 | |
| Employee benefit obligations | 387.25 | 306.07 | |
| 1,411.62 | 1,526.22 | ||
| 3. Current Liabilities | |||
| Financial liabilities | |||
| Lease liabilities | 184.08 | 146.43 | |
| Derivative instruments | - | 244.37 | |
| Trade payables | |||
| Total outstanding dues of Micro enterprises and small enterprises | 5.08 | 3.16 | |
| Total outstanding dues of creditors other than Micro enterprises and small enterprises | 587.36 | 1,090.08 | |
| Other financial liabilities | 494.04 | 335.10 | |
| Other current liabilities | 58.27 | 57.32 | |
| Employee benefit obligations | 595.04 | 621.24 | |
| Current tax liabilities (net) | 90,01 | 23.10 | |
| 2,013.88 | 2,520.80 | ||
| TOTAL· EQUITY AND LIABILITIES | 15,962.31 | 15,160.09 |
13 Statement of Cash flow
| (Rupees in million) | ||
|---|---|---|
| Year ended | ||
| Particulars | March 31, | March 31, |
| 2021 | 2020 | |
| Audited | Audited | |
| Operating activities | ||
| Profit before tax | 3,244.69 | 1,833.18 |
| Adjustments to reconcile profit before tax to net cash flows: | ||
| Depreciation and amortisation expense | 500.04 | 445.93 |
| Share-based payment expense | 9.29 | 8.50 |
| Net foreign exchange differences | 14.16 | (45.50) |
| Loss on sale of assets | 3.56 | 12.93 |
| Interest income on corporate rent deposits | (15.35) | (11.45) |
| Amortised cost on corporate rent deposits | 16.74 | 11 .84 |
| Profit on sale of current investments | (224.51) | (13.32) |
| Dividend income | - | (65.02) |
| Interest income | (82.25) | (152.04) |
| Bad debts written off | 1.73 | 11.70 |
| Provision/ (reversal of provision) for doubtful debts | 0.84 | (4.20) |
| Finance cost | 183.62 | 176.62 |
| Fair value (gain)/ loss on financial instruments at fair value through profit or loss | 70.23 | (121.20) |
| Provision for doubtful recovery of loan to ESOP Trust (refer note 8) | - | 488.40 |
| Other adjustments | (37.73) | (17.48) |
| Working capital adjustments: | 3,685.06 | 2,558.89 |
| (Increase) I decrease in trade receivables | ||
| (270.53) | 213.95 | |
| Decrease I (increase) in other current and non current financial assets | 84.15 | (25.21) |
| Decrease in other current and non current assets | 52.07 | 213.28 |
| Increase in employee benefit obligations | 54.99 | 141.47 |
| (Decrease) I increase in trade payables, other current and non current liabilities and provisions | (310.15) | 391.46 |
| Cash generated by operating activities | 3,295.59 | 3,493.84 |
| Income tax paid (Net of refunds) | (811 .79) | (586.83) |
| Net cash flows aenerated from operating activities | 2,483.80 | 2,907.01 |
| Investing activities | ||
| Proceeds from sale of current investments | 11,425.53 | 10,536.44 |
| Purchase of current investments | (9,189.78) | (11,960.70) |
| Investment in subsidiaries during the year | (2,493.02) | - |
| Investment in bank deposits (having original maturity of more than three months) | (2,645.79) | (1 ,781.87) |
| Redemption / maturity of bank deposits (having original maturity of more than three months) | 3,075.46 | 3,390.46 |
| Unclaimed dividend and fractional share | (0.16) | (0.16) |
| Proceeds from sale of property, plant and equipment | 0.96 | 7.64 |
| Purchase of property, plant, equipment and intangibles (including capital work in progress) | (294.28) | (227.84) |
| Dividend received | - | 65.02 |
| Interest received | 126.60 | 322.04 |
| Net cash flows generated from investing activities | 5.52 | 351.03 |
| Financing activities | ||
| Proceeds from issue of equity share capital | - | 6.32 |
| Buyback of equity shares | (1 ,095.00) | (2,620.00) |
| Buyback expenses | (9.47) | (24.52) |
| Tax on buyback of equity shares | (243.00) | - |
| Payment of dividend (including tax on dividend in previous year) | (34.89) | (44.58) |
| Interest paid | (183.62) | (176.62) |
| Principal payment - Lease | (162.86) | (163.10) |
| Net cash flows used in financing activities | (1,728.84) | (3,022.50) |
| Net increase in cash and cash equivalents | 760.48 | 235.54 |
| Cash and cash equivalents at the be<:iinning of the vear | 621.87 | 386.33 |
| Cash and cash equivalents | 1,382.35 | 621.87 |
For and on behalf of Board of Directors
P · d h Digitally signed by nya arS a Priyadarshan Mundhra n Mundhra Date:2021.06.10
15:56:40 +05'30'
PD Mundhra Executive Director
Place: Mumbai Date: June 10, 2021
S.R. BATI.IBOI & ASSOCIATES LLP
Chartered Accountants
12th Floor, The Ruby 29 Senapati Bapat Marg Dadar (West) Mumbai - 400 028, India
Tel: +91 22 6819 8000
Independent Auditor's Report on the Quarterly and Year to Date Consol idated Financial Results of the Company Pursuant to the Regulation 33 of the SEBI {Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended
To
Board of Directors of eClerx Services Limited
Report on the audit of the Consolidated Financial Results
Opinion
We have audited the accompanying statement of quarterly and year to date consolidated financial results of eClerx Services Limited ("Holding Company") and its subsidiaries (the Holding Company and its subsidiaries together referred to as "the Group"), for the quarter ended March 31, 2021 and for the year ended March 31, 2021 ("Statement"), attached herewith, being submitted by the Holding Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ("Listing Regulations").
In our opinion and to the best of our information and according to the explanations given to us and based on the consideration of the reports of the other auditors on separate audited financ ial statements and financial information of the subsidiaries, the Statement:
- i. includes the results of the entities mentioned in the Annexure to this report;
- ii . are presented in accordance with the requirements of the Listing Regulations in this regard; and
- iii. gives a true and fair view in conformity with the applicable accounting standards, and other accounting principles generally accepted in India, of the consolidated net profit and other comprehensive income and other financial information of the Group for the quarter ended March 31, 2021 and for the year ended March 31, 2021.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs), as specified under Section 143(1 O) of the Companies Act, 2013, as amended ("the Act"). Our responsibilities under those Standards are further described in the "Auditor's Responsibilities for the Audit of the Consolidated Financial Results" section of our report. We are independent of the Group in accordance with the 'Code of Ethics' issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us and other auditors in terms of their reports referred to in "Other Matter" paragraph below, is sufficient and appropriate to provide a basis for our opinion.
Management's Responsibilities for the Consolidated Financial Results
The Statement has been prepared on the basis of the consolidated annual financial statement s. The Holding Company's Board of Directors are responsible for the preparation and presentation of the Statement that give a true and fair view of the net profit and other comprehensive income and other financial information of the Group in accordance with the applicable accounting standards prescribed under section 133 of the Act read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. The respective Board of Directors of the companies included in the Group are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Group and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable
Page 1 of 4 S.R , Batliboi & Associates LLP, a Limited Liabi lity Partnership wit ll LLP Identity No. AAB-4295 Regd. Office : 22, Camac Street, Block 'B', 3rd Floor, Kolkata-700 016
S.R. BATI.IBOI & ASSOCIATES LLP
Chartered Accountants eClerx Services Limited Independent auditor's report
and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Statement that give a true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the Statement by the Directors of the Holding Company, as aforesaid.
In preparing the Statement, the respective Board of Directors of the companies included in the Group are responsible for assessing the ability of the Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the respective Board of Directors either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
The respective Board of Directors of the companies included in the Group are also responsible for overseeing the financial reporting process of the Group.
Auditor's Responsibilities for the Audit of the Consolidated Financial Results
Our objectives are to obtain reasonable assurance about whether the Statement as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the Statement.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the Statement, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.
- Conclude on the appropriateness of the Board of Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Group to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the Statement or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the Statement, including the disclosures, and whether the Statement represent the underlying transactions and events in a manner that achieves fair presentation.
- Obtain sufficient appropriate audit evidence regarding the financial results/financial information of the entities within the Group of which we are the independent auditors and whose financial information we have audited, to express an opinion on the Statement. We are responsible for the direction, supervision and performance of the audit of the financial
S.R. BATL/B0/ & ASSOCIATES LLP
Chartered Accountants eClerx Services Limited Independent auditor's report
information of such entities included in the Statement of which we are the independent auditors. For the other entities included in the Statement, which have been audited by other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion.
We communicate with those charged with governance of the Holding Company and such other entities included in the Statement of which we are the independent auditors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
We also performed procedures in accordance with the Circular No. Cl R/CFD/CMD1 / 44/2019 dated March 29, 2019 issued by the Securities Exchange Board of India under Regulation 33 (8) of the Listing Regulations, to the extent applicable.
Other Matter
The accompanying Statement includes the audited financial statements and other financial information, in respect of ten subsidiaries, whose financial statements include total assets of Rs 3,964.65 million as at March 31, 2021, total revenues of Rs 1,078.81 million and Rs 2,377.56 million, total net profit after tax of Rs. 193.96 million and Rs. 286.41 million, total comprehensive income of Rs. 201 .08 million and Rs. 287 .19 million, for the quarter and the year ended on that date respectively, and net cash outflows of Rs. 58.98 million for the year ended March 31, 2021, as considered in the Statement which have been audited by their respective independent auditors. The independent auditor's report on the financial statements and other financial information of these entities have been furnished to us by the Management and our opinion on the Statement in so far as it relates to the amounts and disclosures included in respect of these subsidiaries is based solely on the reports of such auditors and the procedures performed by us as stated in paragraph above. Our opinion on the Statement is not modified in respect of the above matters with respect to our reliance on the work done and the reports of the other auditors.
The Statement includes the results for the quarter ended March 31, 2021 being the balancing figures between the audited figures in respect of the full financial year ended March 31, 2021 and the published unaudited year-to-date figures up to the end of the third quarter of the current financial year, which were subjected to a limited review by us, as required under the Listing Regulations .
For S.R. Batliboi & Associates LLP Chartered Accountants ICAI Firm Registration Number: 101049W/E300004
VINEET KEDIA
Digitally signed by VINEET KE DIA ON: cn=VINEET KEDIA, c=IN, o=Persona!, email=[email protected] Date: 2021 .06.10 16:19:28 +05'30'
per Vineet Kedia Partner Membership No.: 212230 UDIN: 21212230AAAABT4635 Mumbai June 10, 2021
S.R. BATL/801 & A SSOCIATES LLP
Chartered Accountants eClerx Services Limited Independent auditor's report
Annexure to the Independent Auditor's Report on the Quarterly and Year to Date Consolidated Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obl igations and Disclosure Requirements) Regulations, 2015, as amended
| Sr. No. | Name of subsidiaries |
|---|---|
| 1 | eClerx LLC |
| 2 | eClerx Limited |
| 3 | eClerx Private Limited |
| 4 | eClerx Investments (UK) Limited |
| 5 | eClerx Canada Limited |
| 6 | CLX Europe S.P.A |
| 7 | CLX Europe Media Solution GmbH |
| 8 | CLX Europe Media Solution Limited |
| 9 | CLX Thai Company Limited |
| 10 | eClerx Employee Welfare Trust |
| 11 | eClerx B.V. |
| 12 | Eclipse Global Holdinqs LLC |
| 13 | ASEC Group, LLC |
| 14 | Personiv Contact Centers LLC |
| 15 | Personiv Contact Centers India Private Limited |
| 16 | AG Resources (India) Private Limited |
| 17 | AGR Operations Manila Inc |
VINEET KEDIA
Digitally signed by VINEET KEDIA ON: cn=VINEET KEDIA, c=IN, o=Personal. emall=vineet.l<[email protected] Date: 2021.06.10 16:20: 11 +05'30'
ECLERX SERVICES LIMITED CIN: L72200MH2000PLC125319 Regd. Office: Sonawala Building, 1st Floor, 29, Bank Street, Fort, Mumbai - 400 023
STATEMENT OF CONSOLIDATED AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED MARCH 31, 2021
| (Ruoees in million, except per share data) | ||||||
|---|---|---|---|---|---|---|
| Quarter endedYear ended | ||||||
| Sr.No. | Particulars | March 31,2021 | December 31,2020 | March 31,2020 | March 31,2021 | March 31,2020 |
| Audited* | Unaudited | Audited* | Audited | Audited | ||
| I | Revenue from operations | 4,728. 18 | 3,943.34 | 3,509.31 | 15,644.91 | 14,375.71 |
| II | Other income | 64.11 | 89.08 | 167.57 | 344.54 | 467.05 |
| Ill | Total Income (I+ II) | 4,792.29 | 4,032.42 | 3,676.88 | 15,989.45 | 14,842.76 |
| IV | Expenses | |||||
| Employee benefits expense | 2,515.08 | 2,287.92 | 2,124.34 | 8,853.10 | 8,542.62 | |
| Depreciation and amortisation expense | 244.44 | 202.31 | 184.96 | 815.93 | 708.95 | |
| Cost of technical sub-contractors | 203.13 | 105.41 | 120.87 | 531 .02 | 554.44 | |
| Other expense | 484.91 | 429.11 | 486.82 | 1,780.45 | 2,043.46 | |
| Finance cost | 55.77 | 48.28 | 49.22 | 202.77 | 188.10 | |
| Total expenses (IV) | 3,503.33 | 3,073.03 | 2,966.21 | 12,183.27 | 12,037.57 | |
| V | Profit before exceptional items and tax (Ill-IV) | 1,288.96 | 959.39 | 710.67 | 3,806.1 8 | 2,805.19 |
| VI | Exceptional items | - | - | - | - | - |
| VII | Profit before tax | 1,288.96 | 959.39 | 710.67 | 3,806.18 | 2,805.19 |
| VIII | Tax expense | 305.10 | 247.22 | 156.88 | 977.97 | 715.47 |
| (1) Current tax | 333.76 | 287.42 | 161 .12 | 1,031.35 | 723.20 | |
| I (2) Deferred tax | (28.66) | (40.20) | (4.24) | (53.38) | (7.73) | |
| IX | Profit for the period (VII-VIII) | 983.86 | 712.17 | 553.79 | 2,828.21 | 2,089.72 |
| Attributable to: | ||||||
| Shareholders of the Company | 987.52 | 710.43 | 553.96 | 2,825.61 | 2,089.83 | |
| Non controlling interest | (3.66) | 1.74 | (0.17) | 2.60 | (0.11) | |
| X | Profit for the period (IX) | 983.86 | 712.17 | 553.79 | 2,828.21 | 2,089.72 |
| XI | Other Comprehensive Income/ (Loss) ('OCI') | (49.61) | 169.62 | (185.26) | 481.32 | (180.87) |
| A (i) Items that will not be reclassified to profit or loss | 16.27 | (14.32) | 18.28 | (26.30) | (17.48) | |
| (ii) Income tax relating to items that will not be reclassified to profit or loss | (4.31) | 3.60 | (4.81) | 6.40 | 4.11 | |
| B (i) Items that will be reclassified to profit or loss (net) | (56.10) | 216.79 | (313. 14) | 653.63 | (310.93) | |
| (ii) Income tax relating to items that will be reclassified to profit or loss | (5.47) | (36.45) | 114.41 | (152.41) | 143.43 | |
| XII | Total Comprehensive Income for the period (X+XI) | 934.25 | 881.79 | 368.53 I | 3,309.53 | 1,908.85 |
| (Comprisin<1 Profit and Other Comprehensive Income for the period) | ||||||
| Attributable to: | ||||||
| Shareholders of the Company | 937.91 | 880.05 | 368.70 | 3,306.93 | 1,908.96 | |
| Non controlling interest | (3.66) | 1.74 | (0.17) | 2.60 | (0.11) | |
| XIII | Paid up equity share capital | |||||
| (Face value of Rs. 10 each, fully paid up) | 340.06 | 340.06 | 361.00 | 340.06 | 361.00 | |
| XIV | Other equity | 14,677.08 | 12,707.26 | |||
| xv | Earnings per share: (in Rs.) | |||||
| (1) Basic | 29.04 | 20.89 | 15.35 | 81 .61 | 57.26 | |
| I (2) Diluted | 28.81 | 20.79 | 15.35 | 81.29 | 57.25 |
*Refer note 3
Notes:
- The statement of audited financial results for the quarter and year ended March 31 , 2021 have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on June 10, 2021. There are no qualifications in the audit report issued by the auditors.
- 2 These consolidated financial results have been prepared in accordance with the Indian Accounting Standards prescribed under Section 133 of the Companies Act, 2013 read with the relevant rules issued thereunder.
- 3 The figures for the three month period ended March 31, 2021 and March 31 , 2020 are the balancing figures between audited figures in respect of the full financial year ended March 31, 2021 and March 31, 2020 respectively and unaudited published year- to-date figures up to December 31, 2020 and December 31 , 2019 respectively, being the end of the third quarter of the respective financial years, which were subject to limited review.
- 4 The Group has considered the possible effects that may result from the pandemic relating to COVID-19 on the carrying amounts of receivables, unbilled revenue, goodwill, intangible assets, other financial assets, revenues and costs, leases and its hedging program. In assessing the recoverability of its assets, the Group has used internal and external sources of information up to the date of approval of these consolidated financial results and expects to recover the net carrying amount of its assets. The Group also expects the demand for services to remain volatile for some more time. However, the actual impact of COVID-19 on the Group's financial statements may differ from that estimated and the Group will continue to closely monitor any material changes to future economic conditions.
- 5 The Group operates under a single reportable segment which is data management, analytics solutions and process outsourcing services. Further, the risks and rewards under various geographies where the Group operates are similar in nature.
- 6 The Group has acquired the entire shareholding of Eclipse Global Holdings LLC (dba Personiv) headquartered in Austin, Texas, USA on December 23, 2020 through investment in its overseas subsidiary eClerx LLC, USA, for an estimated purchase consideration of Rs 2,530.39 million (USO 34.27 million) including earn-out considerations over two years. Personiv provides digital, creative, back office and customer contact solutions. The excess of the purchase consideration paid over the fair value of net assets acquired has been attributed to goodwill amounting to Rs 1,422.94 million (USD 19.27 million). Accordingly, the consolidated financial results for the quarter and period ended March 31 , 2021 also include the results of Personiv Group for the period post acquisition.
- 7 The Board of Directors vide their meeting dated July 06, 2020 approved buyback of equity shares of the Company for an aggregate amount not exceeding Rs. 1,095 million at a buyback price not exceeding Rs. 550 per equity share from the shareholders/beneficial owners of the company (other than those who are Promoters, members of promoter Group and persons in control of the Company). The Company bought back 2,093,815 equity shares of Rs 1 O each at an average price of Rs. 522.97 per share amounting to Rs. 1,095 million and concluded the said buyback on July 22, 2020. The shares so bought back were extinguished and the issued and paid up capital stands amended accordingly. Further, the Company has incurred buy back expenses of Rs. 9.47 million and buy back tax of Rs. 243 million which have been charged to retained earnings.
- a The Group through its subsidiary Eclerx Investments (UK) limited, incorporated Eclerx B.V. in May 2020 having its registered office in Amsterdam.
- g The Code on Social Security, 2020 relating to employee benefits during the employment and post- employment benefits received President's assent on September 28, 2020. The Code has been published in the Gazette of India. However the date on which the Code will come into effect has not been notified. The Group will assess and record the impact of the Code, if any, when it becomes effective.
- 1 O The Board of Directors have recommended a dividend of Re. 1 per Equity Share of Rs. 1 O each for the financial year 2020-21
11 Statement of assets and liabilities
| Ruoees in million) | ||
|---|---|---|
| As at | As at | |
| Particulars | March 31 , | March 31, |
| 2021 | 2020 | |
| Audited | Audited | |
| A.ASSETS | ||
| 1. Non current assets | ||
| Property, plant and equipment | 845.88 | 778.26 |
| Right of use assets | 1,327.47 | 1,281.47 |
| Capital work in progress | 4.83 | 7.99 |
| Goodwill on consolidation | 3,726.25 | 2,272.10 |
| Other intangible assets | 1,380.74 | 465.61 |
| Financial assets | ||
| Investments | 2.40 | 2.40 |
| Derivative instruments | 25.53 | - |
| Other financial assets | 255.29 | 125.14 |
| Deferred tax assets (net) | ||
| 339.73 | 384.25 | |
| Other non - current assets | 35.39 | 191.88 |
| Non-current tax assets (net) | 104.66 | 103.41 |
| 8,048.17 | 5,612.51 | |
| 2. Current assets | ||
| Inventories | 3.19 | 3.04 |
| Financial assets | ||
| Investments | 2,283.80 | 4,365.52 |
| Trade receivables | 2,930.22 | 2,377.84 |
| Cash and cash equivalents | 3,490.20 | 1,745.61 |
| Other bank balances | 1,418.42 | 1,599.38 |
| Other financial assets | 989.26 | 1,124.19 |
| Derivative instruments | 239.03 | - |
| Other current assets | 679.15 | 531.46 |
| 12,033.27 | 11,747.04 | |
| TOTAL - ASSETS | 20,081.44 | 17,359.55 |
| B. EQUITY AND LIABILITIES | ||
| 1. Equity | ||
| Equity Share capital | 340.06 | 361.00 |
| Other Equity | 14,668.13 | 12,701 .14 |
| Total Equity attributable to shareholders of the Company | 15,008.19 | 13,062.14 |
| Non-controlling interests | 8.95 | 6.1 2 |
| Total Equity | 15,017.14 | 13,068.26 |
| 2. Non current liabilities | ||
| Financial liabilities | ||
| Lease liabilities | 1,437.70 | 1,316.50 |
| Derivative instruments | - | 96.63 |
| Borrowings | 1.71 | 3.1 5 |
| Deferred tax liabilities (net) | 175.89 | 129.35 |
| Employee benefit obligations | 562.08 | 443.08 |
| Other non - current liabilities | 29.02 | - |
| 2,206.40 | 1,988.71 | |
| 3. Current liabilities | ||
| Financial liabilities | ||
| Lease liabilities | 304.65 | 240.84 |
| Derivative instruments | - | 244.38 |
| Borrowings | 3.22 | 5.53 |
| Trade payables | ||
| Total outstanding dues of Micro enterprises and small enterprises | 9.81 | 3.16 |
| Total outstanding dues of creditors other than Micro enterprises and small enterprises | 219.51 | 135.48 |
| Other financial liabilities | 693.11 | 444.19 |
| Other current liabilities | 347.93 | 153.14 |
| Employee benefit obligations | 1,041 .25 | 879.27 |
| Current tax liabilities (net) | 238.42 | 196.59 |
| 2,857.90 | 2,302.58 | |
| TOTAL - EQUITY AND LIABILITIES | 20,081.44 | 17,359.55 |
| 12 Statement of Cash flow | (Rupees in Million)Year ended | ||||
|---|---|---|---|---|---|
| March 31 ,2021 | March 31 ,2020 | ||||
| Audited | Audited | ||||
| Operating activities | |||||
| Profit before tax | 3,806.18 | 2,805.19 | |||
| Adjustments to reconcile profit before tax to net cash flows: | |||||
| Depreciation and amortisation expense | 815.93 | 708.95 | |||
| Share-based payment expense | 21.32 | 9.28 | |||
| Net foreign exchange differences | (4.42) | 36.27 | |||
| Loss on sale of assets | 3.56 | 12.93 | |||
| Interest income on corporate rent deposits | (16.52) | (11.44) | |||
| Amortised cost on corporate rent deposits | 16.74 | 11.84 | |||
| Profit on sale of current investments | (224.51) | (13.32) | |||
| Dividend income | (0.06) | (66.66) | |||
| Interest income | (85.02) | (132.16) | |||
| Other adjustments | (31 .79) | (17.48) | |||
| Bad debts written off | 1.73 | 11.70 | |||
| Finance cost | 202.77 | 188.10 | |||
| Provision for doubtful debts | 1.04 | 9.12 | |||
| Fair value loss/ (gain) on financial instruments at fair value through profit or loss | 70.23 | (121.20) | |||
| 4,577.18 | 3,431.12 | ||||
| Working capital adjustments: | |||||
| Increase in employee benefit obligations | 190.01 | 213.33 | |||
| (Increase) / decrease in trade receivables | (303.37) | 98.36 | |||
| (Increase) / decrease in inventories | (0.15) | 0.56 | |||
| Decrease in other current and non current financial assets | 87.74 | 26.45 | |||
| Decrease in other current and non current assets | 32.68 | 150.60 | |||
| Increase I (decrease) in trade payables, other current and non current liabilities and provisions | 65.92 | (2.29) | |||
| Cash generated by operating activities | 4,650.01 | 3,918.13 | |||
| Payment of domestic and foreign taxes (net of refunds) | (1 ,004.32) | (590.17) | |||
| Net cash flows generated from operating activities | 3,645.69 | 3,327.96 | |||
| Investing activities | |||||
| Proceeds from sale of current investments | 11 ,425.77 | 10,589.94 | |||
| Purchase of current investments | (9,189.78) | (11,960.70) | |||
| Investment in bank deposits (having original maturity of more than three months) | (2,938.02) | (1 ,781 .87) | |||
| Redemption I maturity of bank deposits (having original maturity of more than three months) | 3,075.46 | 3,390.46 | |||
| Payment of unclaimed dividend and fractional share | (0.16) | (0.16) | |||
| Payment towards acquisition of business, net of cash acquired | (2,160.71) | - | |||
| Proceeds from sale of property, plant and equipment | 0.96 | 7.68 | |||
| Purchase of property, plant, equipment and intangibles (including capital work in progress) | (388.21) | (343.16) | |||
| Dividend received | 0.06 | 66.66 | |||
| Interest received | 129.38 | 214.07 | |||
| Net cash flows (used in)/ generated from investing activities | (45.25) | 182.92 | |||
| Financing activities | |||||
| Proceeds from issue of equity share capitalBuyback of equity shares | -(1 ,095.00) | 6.32(2,563.75) | |||
| Buyback expenses | (9.47) | (24.52) | |||
| Tax on Buyback | (243.00) | - | |||
| Payment of dividend | (34.01) | (36.10) | |||
| Dividend distribution tax | - | (7.60) | |||
| Bank loan repaid | (8.16) | (8.07) | |||
| Interest paid | (199.92) | (188.10) | |||
| Princioal oayment - LeaseNet cash flows used in financing activities | (293.51)(1,883.07) | (260.53)(3,082.35} | |||
| Effect of exchange fluctuation on cash and cash equivalents | 27.22 | 60.84 | |||
| Net increase in cash and cash equivalents | 1,744.59 | 489.37 | |||
| Cash and cash eauivalents at the beainnina of the vear | 1,745.61 | 1,256.24 | |||
| Cash and cash eauivalents | 3,490.20 | 1,745.61 |
13 The standalone financial results of the Company would be available for perusal on the Company's website viz www.eclerx.com. Key standalone financial information is given (Rupees in million)
| Year ended | |||||
|---|---|---|---|---|---|
| Particulars | March 31,2021 | Quarter endedDecember 31,2020 | March 31,2020 | March 31 ,2021 | March 31 ,2020 |
| Audited* | Unaudited | Audited* | Audited | Audited | |
| Revenue from operations | 3,295.24 | 3,091.28 | 2,782.39 | 11 ,974.01 | 11 ,201.67 |
| Profit before tax | 1,056.02 | 766.56 | 585.77 | 3,244.69 | 1,833.18 |
| Profit after tax | 783.52 | 571 .1 5 | 437.30 | 2,389.04 | 1,235.71 |
*Refer note 3
For and on behalf of Board of Directors
Priyadarshan Mundhra Digitally signed by Priyadarshan Mundhra Date: 2021 .06.10 15:58:01 +05'30'
Place: Mumbai Date: June 1 a, 2021
PD Mundhra Executive Director
Financial Performance – Q4FY21 June 10th, 2021
Financial Summary
| Metrics | FY21 Q4 | Q-o-Q | FY21 | Y-o-Y | |
|---|---|---|---|---|---|
| OPG revenue (USD mm) | 63.8 | 19.7% | 210.4 | 5.0% | |
| Revenue | OPG revenue (INR mm) | 4,728 | 19.9% | 15,645 | 8.8% |
| Total revenue (INR mm) | 4,766 | 19.9% | 15,827 | 6.7% | |
| EBITDA (INR mm) | 1,589 | 31.3% | 4,825 | 30.3% | |
| Profit | EBIT(INR mm)* | 1,351 | 34.0% | 4,015 | 34.1% |
| Net profit (INR mm) | 988 | 39.0% | 2,826 | 35.2% | |
| EBITDA (%) | 33.3% | 2.9% | 30.5% | 5.5% | |
| Margin | EBIT(%) | 28.3% | 3.0% | 25.4% | 5.2% |
| Net profit (%) | 20.7% | 2.9% | 17.9% | 3.8% |
* EBIT includes other income and excludes rental interest under IND AS116
- Q4 YoY Constant currency (CC) growth by 31.8% (organic 16.2%); QoQ CC growth of 19.3% (organic 6.3%)
- Offshore growth stronger than onshore
- Acquisition of Personiv completed on 23rd December
- Annualized Q4 revenue crossed $30mm with PAT% in double digits
- One time professional fee incurred for acquisition INR 8.5 mm in Q4 and INR 52 mm for FY21
- Normal wage increments to be effective 1st April 2021
- Dividend of INR 1 proposed for FY21
Other Income
Figures in INR millions.
| Other Income | FY21 Q4 | FY21 Q3 | FY21 Q2 | FY21 Q1 | FY20 Q4 |
|---|---|---|---|---|---|
| Investment Income | 24.6 | 47.3 | 59.6 | 107.9 | 88.9 |
| Revaluation Income* | 4.9 | (20.2) | (64.5) | (6.1) | 75.9 |
| Others | 7.9 | 5.8 | 1.2 | 13.6 | 5.1 |
| Total | 37.5 | 32.9 | (3.7) | 115.4 | 169.9 |
* Gain / Loss regrouped as other income/expenses based on profit or loss position in the press release financials
- Decrease in investment income due to lower investible base due to acquisition and decreasing yields
- Revaluation and Realised Gain
- USD/INR FY'21 Q4 Exit: 73.17 vs. FY'21 Q3 Exit: 73.02
- EUR/INR FY'21 Q4 Exit: 85.92 vs. FY'21 Q3 Exit: 89.34
- GBP/INR FY'21 Q4 Exit: 100.96 vs. FY'21 Q3 Exit: 99.80
P&L Comparison
Figures in INR millions.
| Operating P&L | FY21 Q4 | OPR (%) | FY21 Q3 | OPR (%) |
|---|---|---|---|---|
| Total Revenue $ | $63.8 | $53.3 | ||
| Total Revenue | 4,766 | 3,976 | ||
| Operating Revenue | 4,728 | 3,943 | ||
| Cost of Revenues | ||||
| Delivery and Support Employees Cost | 2,261 | 47.8% | 1,950 | 49.4% |
| General and Administrative Expenses | ||||
| Facilities (Rent and Electricity) | 84 | 1.8% | 75 | 1.9% |
| Technological Services (Communications, AMC) | 98 | 2.1% | 77 | 2.0% |
| Administrative Services (Transport, HK, Security) | 41 | 0.9% | 28 | 0.7% |
| Legal and Professional Fees | 69 | 1.5% | 77 | 2.0% |
| Provision / Written off for Bad Debt | 0 | 0.0% | (3) | (0.1%) |
| CSR & Donation | 14 | 0.3% | 12 | 0.3% |
| Others | 114 | 2.4% | 77 | 2.0% |
| Total G&A | 419 | 8.9% | 345 | 8.7% |
| Selling and Distribution | 497 | 10.5% | 472 | 12.0% |
| EBITDA | 1,589 | 33.3% | 1,210 | 30.4% |
| Depreciation and Amortization (Inc. rent as per IND AS116) | 239 | 5.0% | 202 | 5.1% |
| EBIT | 1,351 | 28.3% | 1,008 | 25.3% |
* Gain / Loss regrouped as other income/expenses based on profit or loss position in the press release financials
Hedge Updates
Current Hedge Status
• Total outstanding hedges now $137.2 mm at average INR 77.7/$; 100% forwards
| Contract | Year | Currency | Amount (mm) | Avg. Rate (INR) |
|---|---|---|---|---|
| FY21 Q1 | $23.7 | 74.1 | ||
| Matured Forwards | FY21 Q2 | $27.7 | 74.5 | |
| FY21 Q3 | $21.7 | 74.7 | ||
| FY21 Q4 | $25.6 | 75.3 | ||
| Total FY21 | USD | 98.7 | 74.6 | |
| FY22 Q1 | $28.8 | 76.7 | ||
| FY22 Q2 | $29.6 | 76.9 | ||
| FY22 Q3 | $23.1 | 78.1 | ||
| FY22 Q4 | $24.0 | 78.0 | ||
| Total FY22 | USD | $105.5 | 77.3 | |
| Outstanding Forwards | FY23 Q1 | $14.8 | 78.8 | |
| FY23 Q2 | $9.8 | 79.1 | ||
| FY23 Q3 | $4.7 | 79.7 | ||
| FY23 Q4 | $2.4 | 80.2 | ||
| Total FY23 | USD | $31.7 | 79.1 | |
| Total Outstanding | USD | $137.2 | 77.7 |
- G&A Higher due to Personiv
- S&D cost increase due to Personiv largely offset by moderation in variable pay
- Core Revenue higher due to higher offshore Revenue (including Personiv) and lower roll offs
- Offshore Employee cost higher due to inclusion of Personiv
- Onshore Employee cost higher majorly due to recovery in onshore business
Note:
• S&D Exp. includes employee cost of onsite business development team
Balance Sheet & Other Updates
- Total Cash and Cash Equivalents of INR 6,572 mm for FY'21 vs INR 7,703 mm for FY'20
- Reduction due to Personiv transaction and last Buyback
- Equivalent to INR 193.2 per share FY'21 vs INR 213.4 for FY'20
- Net operating cash flow in FY'21 is INR 3,646 mm vs INR 3,328 mm in FY'20
- o EBITDA conversion at 75.6% for FY'21 vs 89.9% in FY'20
- Capex during FY'21 is INR 351 mm vs INR 274 mm in FY'20
- EPS
- Q4 Basic: 29.04 INR ; Diluted: 28.81 INR
- FY21 Basic: 81.61 INR ; Diluted: 81.29 INR
- Current book value per share FY'21 INR 441.3 vs. INR 361.8 FY'20
- CSR Update
- Spent INR 52.5 mm for existing and new projects in FY'21 related to India; Budget for FY22 is INR 52.2 mm
- Areas covered: Health, Education, Skills development
- Total Life touched / benefited ~ 21k
Key Business Metrics
| Metrics | FY21 Q4 | FY21 Q3 | FY21 Q2 | FY21 Q1 | FY20 Q4 | FY20 Q3 | |
|---|---|---|---|---|---|---|---|
| Currency Contribution (%) * | USD | 79% | 81% | 81% | 85% | 82% | 80% |
| EURO | 12% | 13% | 13% | 9% | 12% | 12% | |
| GBP | 4% | 4% | 5% | 4% | 5% | 6% | |
| Others | 5% | 2% | 1% | 2% | 1% | 2% | |
| Geographic Concentration * | North America | 70% | 66% | 66% | 71% | 68% | 66% |
| Europe | 23% | 28% | 28% | 23% | 26% | 28% | |
| ROW | 7% | 6% | 6% | 6% | 6% | 6% | |
| Debtors (including unbilled) | DSO (days)^ | 75 | 78 | 74 | 83 | 88 | 78 |
| Client Concentration | Top 10 contribution | 62% | 64% | 67% | 70% | 67% | 65% |
| Billing Mix | Managed Services@ | 27% | 30% | 31% | 24% | 28% | 31% |
| Onshore Revenue | 21% | 23% | 23% | 21% | 23% | 25% | |
| Staff Utilization (Delivery) | 83.8% | 81.2% | 79.1% | 72.9% | 75.1% | 77.2% | |
| Client Contribution(based on TTM revenue)* | US$ 500k-1mm Clients | 19 | 17 | 16 | 17 | 21 | 21 |
| US$ 1mm-3mm Clients | 20 | 16 | 19 | 16 | 17 | 18 | |
| US$ 3mm ++ Clients | 13 | 12 | 10 | 11 | 11 | 10 | |
| India Seat Count # | 10,699 | 9,209 | 9,183 | 9,601 | 9,601 | 9,601 |
*Other smaller currencies, geographies and client contribution not shown
@ restated along with inclusion of Personiv from Q3FY21
# Personiv Seat Count included from Q4FY21
^Excluding Personiv
Revenue Mix Trends ($mm)
Strategic growth is measured at quarterly YoY level; Q4 Emerging (others) includes entire Personiv revenue
w w w . e c l e r x . c o m CONFIDENTIAL 9
Thank You
This presentation may contain forward-looking statements, which involves a various risks and uncertainties that could cause our actual results to differ materially from those in such forward-looking statements.
The conditions caused by the COVID-19 pandemic could decrease customer's technology spending, affecting demand for our services, delaying prospective customers' purchasing decisions, and impacting our ability to provide services; all of which could adversely affect our future revenue, margin and overall financial performance. Our operations may also be negatively affected by a range of external factors related to the COVID-19 pandemic that are not within our control. We do not undertake to update any forward-looking statement that may be made from time to time by us or on our behalf. Further this presentation may also contain references to findings of various reports available in public domain. We make no representation as to their accuracy or that we necessarily subscribe to those findings. Figures for previous periods / year have been regrouped, wherever necessary.
Balance Sheet Abstract
Figures in INR millions.
| Particulars | March 31, 2021 | March 31, 2020 | % Change |
|---|---|---|---|
| Shareholder's Funds | |||
| Capital | 340 | 361 | (6%) |
| Minority Interest | 9 | 6 | 46% |
| Reserves and Surplus | 14,668 | 12,701 | 15% |
| Total Shareholder's Funds | 15,017 | 13,068 | |
| Application of Funds | |||
| Fixed Assets | 5,948 | 3,524 | 69% |
| Right to Use Assets (IND AS116) | 1,327 | 1,281 | 4% |
| Lease Liability (IND AS116) | (1,742) | (1,557) | 12% |
| Deferred Tax Assets (net) | 164 | 255 | (36%) |
| Net Current Assets & Investments | 9,320 | 9,565 | (3%) |
| Total Application of Funds | 15,017 | 13,068 |
eClerx's FY21 revenue stands at INR 1582.7 crore and net profit up by 35.2% at INR 282.6 crore
Mumbai, June 10, 2021: eClerx Services Ltd. (eCx), an industry-focused specialist services firm managing and improving complex data-driven processes, today announced its results for fiscal 2021. eClerx empowers the world's largest enterprises with intelligent operations and Insights, providing core business process solutions and data analytics from its global delivery centres.
Consolidated financial highlights for the year ended March 31, 2021
Operating revenue for the year ended March 31, 2021 was INR 1564.5 crore vs. INR 1437.6 crore in the corresponding period last year, YoY growth of 8.8%. In USD terms, operating revenue increased by 5.0% to USD 210.4 Million as compared to USD 200.5 Million in the corresponding period last year. Total revenue including other income for the period was INR 1582.7 crore, YoY increase by 6.7%.
- EBIT for the period is INR 401.5 crore, an increase of 34.1% YoY.
- Profit after tax for the year ended March 31, 2021 was INR 282.6 crore compared with INR 209.0 crore in the corresponding period in the previous year, an increase of 35.2% YoY.
- Basic EPS for the year ended March 31, 2021 was INR 81.6 as compared to INR 57.5 in the corresponding period last year.
- The total delivery headcount as of March 31, 2021 stands at 11,831 an increase of 40% YoY.
eClerx
About eClerx Services Ltd:
eClerx provides business process management, automation and analytics services to a number of Fortune 2000 enterprises, including some of the world's leading financial services, communications, retail, fashion, media & entertainment, manufacturing, travel & leisure and technology companies. Incorporated in 2000, eClerx is today traded on both the Bombay and National Stock Exchanges of India. The firm employs 11,900 people across Australia, Canada, Germany, India, Italy, Netherlands, Philippines, Singapore, Thailand, UK and the USA. For more information, visit www.eclerx.com.
For further information, please contact:
| Mr. Rohitash Gupta | Asha Gupta |
|---|---|
| eClerx Services Ltd. | Christensen IR |
| Tel: +91 22 6614 8463 | Tel: +91 22 4215 0210 |
| Email: [email protected] | Email: [email protected] |
Disclaimer: Certain statements made in this release concerning our future growth prospects may be interpreted as forward looking statements, which involve a number of risks and uncertainties that could cause the actual results to differ materially from those in such forward looking statements. Investors are requested to use their discretion in relying on them. We do not undertake to update any forward-looking statements that may be made from time to time.