eClerx Services Limited — Earnings Release 2023

May 25, 2023

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eClerx/SECD/SE/2023/049

May 25, 2023

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 25[th] Floor, Dalal Street, Bandra (East), Fort, Mumbai - 400 001 Mumbai – 400 051

Dear Sir/Madam,

Sub: Earnings Presentation and Press release w.r.t Consolidated and Standalone Audited Financial Results for the quarter/year ended March 31, 2023

Scrip Code: BSE - 532927 NSE – ECLERX

Further to our letter number eClerx/SECD/SE/2023/047 dated May 25, 2023, please find attached the earnings presentation and press release w.r.t Consolidated and Standalone Audited Financial Results for the quarter/year ended March 31, 2023 for your records.

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.

Thanking you,

Yours faithfully

For eClerx Services Limited

Pratik Digitally signed by Pratik Rameshbhai Rameshbha Bhanushali i Bhanushali Date: 2023.05.25 19:10:43 +05'30'

Pratik Bhanushali Company Secretary and Compliance Officer F8538

Encl: as above

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Investor Investor Relations Relations

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Financial Performance – Q4FY23 May 25[th] , 2023

Financial Summary

Metrics	FY23 Q4 Q-o-Q FY23 Y-o-Y
Revenue	OPG revenue (USD mm) $85.6 0.6% $332.7 16.9%
	OPG revenue (INR mm) 6,931 0.9% 26,479 22.6%
	Total revenue (INR mm) 6,984 -0.9% 27,137 24.2%
Profit	EBITDA (INR mm) 2,119 1.7% 8,097 16.2%
	EBIT (INR mm)* 1,801 0.9% 6,957 17.2%
	Net profit (INR mm) 1,325 1.1% 4,888 17.1%
Margin	EBITDA (%) 30.3% 76 bps 29.8% -207 bps
	EBIT (%) 25.8% 44 bps 25.6% -155 bps
	Net profit (%) 19.0% 36 bps 18.0% -110 bps

• EBIT includes other income and excludes rental interest under IND AS116

• Q4 YoY Constant currency (CC) growth by 12.1%; QoQ CC growth of 0%

• Wage increments to be effective 1[st] April 2023

• Dividend of INR 1 proposed for FY23

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Other Income

Figures in INR millions.

Other Income FY23 Q4 FY23 Q3 FY23 Q2 FY23 Q1	FY22 Q4
Investment Income 68.6 66.1 42.8 26.0	21.0
Revaluation Income* -42.2 49.0 153.4 180.5	51.2
Others 26.1 62.7 12.5 12.6	24.7
Total 52.5 177.8 208.7 219.1	96.9

• Gain / Loss regrouped as other income/expenses based on profit or loss position in the press release financials

• Decrease in revaluation Income due to appreciation of INR against USD (Q4 exit vs Q3 exit).

• Lease modification impact of Airoli consolidation considered in other income INR 54.6mm in Q3

• Revaluation and Realised Gain

• USD/INR FY23 Q4 Exit: 82.17 vs. FY23 Q3 Exit: 82.73

• EUR/INR FY23 Q4 Exit: 89.28 vs. FY23 Q3 Exit: 88.74

• GBP/INR FY23 Q4 Exit: 101.57 vs. FY23 Q3 Exit: 100.11

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Business Process as a Service (BPaaS)

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Services delivered under “outcome-based” contracts

• Commercials structured around milestones, fixed price projects, or fixed + unit prices

• Differentiators are multi-client tenancy; deep domain; IP (techniques, know-how) and software tools

• Longer term better margin and business retention

• Key to developing product-like services AND sales-arrowheads

Example services

• Client Lifecycle

• • Field Tech Operations

• Digital Asset Creation

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Data Management Insight Awards USA 2022 Roboworx won the Best Proposition for AI, Machine Learning

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NASSCOM AI Game Changer Award 2022 Compliance Manager won in the BFSI Segment

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Key FY23 Metrics

REVENUE $91mm ($73mm in FY22); 17% organic 3Y CAGR CLIENTS Over 100; 15 with BPaaS Revenues > $1mm

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Analytics & Automation

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Analytics primary consumers are CMO and COO client organizations

• Services comprise marketing and customer analytics; business intelligence; advanced modeling

• Techniques comprise data design, lineage and engineering; model building; visualization

• Delivery is hybrid onshore and offshore; more complex projects and stronger client engagement

• Primary competition from dedicated offshore analytics providers

Automation primary consumers are business buyers and occasionally IT

• Services comprise consulting; business analysis; platform implementation; custom development; testing

• Includes fees for eClerx tools: FLUiiD4, Compliance Manager, Market360 , Billing Manager, Workflow Manager

• Leverages team investments in third party tools and capabilities in RPA, AI/ML

Key FY23 Metrics

Excludes A&A bundled in service lines

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50 Best Firms For Data Scientists To Work For eClerx included in Analytics India Magazine’s list Business Analytics Company of the Year eClerx won at the 2023 Singapore Prestige Awards

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REVENUE $71mm ($60mm in FY22); 24% organic 3Y CAGR , highest realization service line

CLIENTS Over 100; 14 with A&A revenues > $1mm in FY22

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Hedge Updates

Current Hedge Status

• Total outstanding hedges now $193.8 mm at average INR 82.89/$; 100% forwards

Contract	Year Currency Amount (mm) Avg. Rate (INR)
Matured Forwards	Total FY22 USD $151.90 76.75
	FY23 Q2 $37.30 77.9
	FY23 Q3 $40.80 78.8
	FY23 Q4 $41.70 79.7
	Total FY23 USD $159.00 78.55
Outstanding Forwards	FY24Q1 $41.70 80.8
	FY24Q2 $41.70 81.8
	FY24Q3 $33.30 83.0
	FY24Q4 $33.30 83.8
	Total FY24 USD $150.00 82.24
	FY25Q1 $21.00 84.6
	FY25Q2 $13.50 85.3
	FY25Q3 $6.30 85.9
	FY25 Q4 $3.00 86.4
	Total FY25 $43.80 85.11
Total Outstanding	USD $193.80 82.89

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P&L Comparison

Figures in INR millions.

Operating P&L FY23 Q4 OPR (%)	FY23 Q3 OPR (%)
Operating Revenue $ 85.6	85.1
Total Revenue 6,984*	7,045
Operating Revenue 6,931	6,867
Cost of Revenues
Delivery and Support Employees Cost 3,460 49.9%	3,602 52.5%
General and Administrative Expenses
Facilities (Rent and Electricity) 109 1.6%	96 1.4%
Technological Services (Communications, AMC) 134 1.9%	146 2.1%
Administrative Services (Transport, HK, Security) 61 0.9%	53 0.8%
Legal and Professional Fees 85 1.2%	95 1.4%
Provision / Written off for Bad Debt 4 0.1%	(3) 0.0%
CSR & Donation 13 0.2%	25 0.4%
Others 186 2.7%	171 2.5%
Total G&A 592 8.5%	584 8.5%
Selling and Distribution 812 11.7%	775 11.3%
EBITDA 2,119 30.3%	2,084 29.6%
Depreciation and Amortization (Inc. rent as per IND AS116) 319 4.6%	299 4.4%
EBIT 1,801 25.8%	1,785 25.3%

* Forex Gain / Loss and gain / loss on sale of tangible assets regrouped as other income/expenses in the press release financials

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YoY EBITDA Bridge

Figures in INR millions

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2,074
918
385
789
2,992
FY22 EBITDA Operating Revenue Offshore Onshore G&A S&D FY23 EBITDA
& Oth Inc. Delivery Cost Delivery Cost
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• Operating revenue & Oth Inc - Revenue growth

• Delivery cost higher due to HC growth

• G&A – Higher return to office spends.

• S&D – Higher travel & marketing spends, higher bonus payout under Personiv; Includes Earnout payout of INR 29mm

Note:

• S&D Exp. includes employee cost of onsite business development team

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Balance Sheet & Other Updates

• Total Cash and Cash Equivalents of INR 6,563 mm for FY23 vs INR 6,805 mm for FY22

• Equivalent to INR 136.6 per share FY23 vs INR 205.6 for FY22

• Net operating cash flow in FY23 is INR 5,050.0 mm vs INR 4,481.7 mm in FY22

  • EBITDA conversion at 62.3% for FY23 vs 64.3% in FY22

• Capex during FY23 is INR 684 mm vs INR 533 mm in FY22

• EPS

• Q4 Basic: 27.05 INR ; Diluted: 26.66 INR

• FY23 Basic: 98.76 INR ; Diluted 97.15 INR

• Current book value per share FY23 INR 357.0 vs. INR 473.6 FY22 (unadjusted)

• CSR Update

• CSR spend of INR 68.0 mm for existing and new projects in FY23.

• Areas covered: Education, Skills development

• Total lives touched / benefited ~ 15k

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Ke Business Metrics y

Metrics	FY23 Q4 FY23 Q3 FY23 Q2 **FY23 Q1 **	FY23 Q4 FY23 Q3 FY23 Q2 **FY23 Q1 **	FY22 Q4 FY22 Q3 FY22 Q2 FY22 Q1
Currency Contribution (%) *	USD	83% 82% 83% 82%	81% 80% 80% 80%
	EURO	10% 10% 9% 10%	11% 11% 10% 12%
	GBP	3% 3% 3% 3%	3% 4% 5% 4%
	Others	4% 5% 5% 5%	5% 5% 5% 4%
Geographic Concentration *	North America	71% 71% 72% 70%	69% 70% 69% 70%
	Europe	20% 20% 20% 22%	23% 23% 24% 23%
	ROW	9% 9% 8% 8%	8% 7% 7% 7%
Debtors (including unbilled)	DSO (days)	80 82 75 72	75 66 65 73
Client Concentration	Top 10 contribution	59% 59% 61% 60%	60% 61% 60% 62%
Billing Mix	BPaaS	29% 26% 26% 27%	28% 26% 24% 25%
	Onshore Revenue	18% 19% 20% 21%	20% 19% 20% 20%
Staff Utilization (Delivery)		74.9% 74.7% 73.8% 73.3%	78.5% 78.7% 78.2% 78.0%
Client Contribution (based on TTM revenue)	US$ 500k-1mm Clients	32 31 27 31	25 18 23 21
	US$ 1mm-3mm Clients	26 24 26 21	23 25 20 20
	US$ 3mm ++ Clients	18 17 16 16	16 16 16 15
Offshore Seat Count		11,278 11,278 11,278 10,582^	11,039 11,039 11,039 11,039

*Other smaller currencies, geographies and client contribution not shown

^ Temporary reduction in seat count, owing to ongoing facility consolidation

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Revenue Mix Trends ($mm)

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$7.0 $7.1 20.0%
$6.9 20.0%7.6% 13.5%
$6.1 75 .6 %%
$6.2 5.6% $28.1 $28.1 21.6%
23.6% 23.6%$25.5 19.9%$25.3 21.6%19.9% 14.6%
28.3% $24.5 35.1% 35.1%
27.0% 27.0%
56.1%
$50.3 $50.0 $50.4
$46.4 $48.0 20.2% 12.5% 8.6%
19.7%
17.7%
20.2% 12.5%
19.7%
17.7%
30.8%
FY22 Q4 FY23 Q1 FY23 Q2 FY23 Q3 FY23 Q4
Strategic (Top 10 clients) Emerging ($ 0.5 mm + ) Emerging (others)
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% Growth is measured at quarterly YoY level

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Human Resources Update

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Headcount
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16,804 107
16,127
956 115
14,910 108 863 1,135
607
749 948
807 599
675
14,271
13,330
12,571
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FY22 Q4 FY23 Q3 FY23 Q4 Offshore Delivery Onshore Delivery Support Services Tech Services BD

Offshore Voluntary Attrition^

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42.6%
29.7%
25.1%
FY22 Q4 FY23 Q3 FY23 Q4
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* ~250 people reclassed from Analytics Delivery to Analytics Tech in Q4

^ From Q1FY23 attrition in the bottom quartile is excluded

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Balance Sheet Abstract

Balance Sheet Abstract	Balance Sheet Abstract	Balance Sheet Abstract	Balance Sheet Abstract
Figures in INR millions.
Particulars	March 31, 2023	March 31, 2022	% Change
Shareholder's Funds
Capital	480	331	45%
Minority Interest	17	12	37%
Reserves and Surplus	16,668	15,345	9%
Total Shareholder's Funds	17,166	15,688
Application of Funds
Fixed Assets	6,404	5,953	8%
Right to Use Assets (IND AS116)	1,530	1,194	28%
Lease Liability (IND AS116)	(1,926)	(1,630)	18%
Deferred Tax Assets (net)	403	233	73%
Net Current Assets & Investments	10,755	9,938	8%
Total Application of Funds	17,166	15,688

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Thank You

This presentation contains forward-looking statements, inter-alia, to enable investors to comprehend company’s - - prospects and take informed investment decisions. This report and other statements written and oral that we periodically make, contain forward-looking statements that set out anticipated results based on the management’s and We have tried wherever to such statements words such as plans assumptions. possible identify by using ‘anticipate’, ‘estimate’, ‘expects’, ‘projects’, ‘intends’, ‘plans’, ‘believes’ and words of similar substance in connection with discussion of future We cannot that these statements will be any performance. guarantee forward-looking realised, although we believe we have been prudent in assumptions. The achievement of results is, inter-alia, subject to assumptions, risks, uncertainties, including but not limited to our ability to successfully conclude and integrate (potential) acquisition(s) and general regulatory and economic conditions affecting the industry. Should known or unknown risks or uncertainties materialise or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated, expected or projected. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. 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.

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eClerx’s FY23 revenue stands at INR 2,713.7 crore and net profit up by 17.1% at INR 488.8 crore

Mumbai, May 25, 2023: eClerx Services Ltd. (eCx), an industry-focused specialist services firm managing and improving complex data-driven processes, today announced its results for fiscal 2023.

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, 2023

Operating revenue for the year ended March 31, 2023 was INR 2,647.9 crore vs. INR 2,160.3 crore last year, YoY increase of 22.6%. In USD terms, operating revenue increased by 16.9% to USD 332.7 Million as compared to USD 284.6 Million last year. Total revenue including other income for the period was INR 2,713.7 crore, YoY increase by 24.2%.

• EBIT for the period is INR 695.7 crore, a growth of 17.2% YoY.

• Profit after tax for the year ended March 31, 2023 was INR 488.8 crore compared with INR 417.4 crore in the previous year, an increase of 17.1% YoY.

• Basic EPS for the year ended March 31, 2023 was INR 98.76 as compared to INR 82.54 (adjusted for bonus) last year.

• The total delivery headcount as of March 31, 2023 stands at 16,012 – an increase of 8.2% YoY.

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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 about 16,100 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:

Srinivasan Nadadhur Asha Gupta eClerx Services Ltd. Ernst & Young LLP Email: srinivasan.nadadhur@eclerx.com Email: asha.gupta@in.ey.com

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.

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