eClerx Services Reports Strong Cash Flow Amid Rising Interest Expenses and Increased Leverage

eClerx Services, a player in the Commercial Services & Supplies sector, has recently undergone a financial trend adjustment reflecting its performance in the quarter ending June 2025. The company reported a notable financial performance, with operating cash flow reaching its highest at Rs 654.62 crore and net sales also peaking at Rs 934.56 crore. Additionally, the profit after tax for the latest six months stood at Rs 293.84 crore, marking a growth of 21.35%.
However, challenges persist for eClerx Services. The interest expense for the latest six months has risen to Rs 20.47 crore, an increase of 24.82%. Key performance indicators such as return on capital employed (ROCE) have dipped to 28.28%, and the operating profit to interest ratio has fallen to 0.00 times. Furthermore, the debt-equity ratio is at its highest level of 0.16 times, indicating increased leverage.

In terms of market performance, eClerx Services has outperformed the Sensex over various time frames, including a remarkable 751.87% return over the past five years compared to the Sensex's 108.88%. This trend highlights the company's resilience and ability to deliver substantial returns despite current financial challenges.