Are eClerx Services latest results good or bad?

eClerx Services has reported its financial results for the quarter ending June 2025, highlighting a mix of operational trends. The company achieved net sales of Rs 934.56 crore, marking the highest quarterly figure in the last five quarters, which reflects a positive sales trend. However, the quarter-over-quarter growth in net sales was recorded at 4.04%, a decline from the previous quarter's growth rate.
Profit After Tax (PAT) for the latest six months reached Rs 293.84 crore, indicating a year-on-year growth of 21.35%, which suggests a strengthening financial position. Nonetheless, the consolidated net profit for the quarter showed a decline of 6.89% compared to the previous quarter, indicating some challenges in profitability.

The operating profit (PBDIT) was reported at Rs 220.54 crore, the highest in the past five quarters, although the quarter-over-quarter growth was modest at 0.89%. The operating profit margin, excluding other income, saw a slight decline of 0.73% from the previous quarter.

On the liquidity front, eClerx Services reported cash and cash equivalents at a peak of Rs 739.13 crore, indicating improved short-term liquidity. However, the company also experienced a rise in interest costs and a higher debt-equity ratio, suggesting increased borrowings to support its operations.

Overall, eClerx Services is navigating its financial landscape with a combination of positive growth in sales and PAT, alongside challenges in profitability and increased leverage. Additionally, the company saw an adjustment in its evaluation during this period.