eClerx Services In Focus: eClerx Services is looking to drive growth through cross-selling, expansion into adjacent business areas, new client wins and acquisitions, while continuing to invest in AI and sales, CEO and Managing Director Kapil Jain said in an interview with NDTV Profit.
Jain said the company's core capabilities remain intact, with the focus now on expanding what eClerx can offer to existing and new clients.
“We are enhancing all our capabilities,” Jain said, adding that eClerx is investing in AI, sales and capabilities.
“The only thing that was missing was a mindset change, cross sell, upsell and really taking and talking about what we do extremely well in front of our clients,” he said.
eClerx Sees Healthy Demand, Cross-Sell Opportunities
Jain said eClerx is seeing healthy demand among existing clients and within its existing industry verticals, while also seeing opportunities to cross-sell its capabilities.
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In financial services, the company has capabilities across equities, derivatives, fixed income, financial crime and compliance, KYC and AML. It is now looking at adjacent areas including consumer banking, commercial banking and retail banking.
“We are seeing good traction and we have had some wins also in this space,” Jain said.
The company is also looking to grow existing accounts outside its top 10 clients while pursuing new logos.
“Our pipeline continues to be healthy,” Jain said.
eClerx Maintains 24-28% EBITDA Margin Guidance
Jain said eClerx will continue to maintain its 24-28% EBITDA margin guidance, even as it invests in AI, sales and capabilities.
“I would continue to maintain the same guidance between 24 to 28%,” he said.
Jain added that the focus remains on staying in the top quartile of growth among peers and delivering sequential growth in EBITDA and EPS.
He also highlighted that eClerx has delivered consistent quarter-on-quarter growth for 12 consecutive quarters.
eClerx Continues To Evaluate Acquisitions
On M&A, Jain said eClerx has a head of M&A and is “constantly looking at acquisition targets”.
However, he said acquisitions would need to meet specific criteria rather than simply add to revenue.
“It should meet capability area, cultural alignment. Valuation needs to be right, one plus one needs to become more than two,” Jain said.
The company is evaluating organic growth as well as tuck-in acquisitions, with Jain highlighting capability fit, cultural alignment and synergies as key considerations.
AI Investments To Be Funded Internally
Jain said eClerx has sufficient financial discipline and is not looking for external funding at this stage for its AI investments.
“It'll be through internal approvals,” he said.
The company has also opened two new centres over the past 12-18 months as it continues to invest in its capabilities.
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