Exlservice Holdings (EXLS) has reported a 21.48 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $16.79 million, or $0.48 a share in the quarter, compared with $13.82 million, or $0.40 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $21.03 million, or $0.60 a share compared with $19.32 million or $0.56 a share, a year ago.
Revenue during the quarter grew 9.58 percent to $183.03 million from $167.04 million in the previous year period. Gross margin for the quarter contracted 74 basis points over the previous year period to 34.37 percent. Total expenses were 91.31 percent of quarterly revenues, up from 90.15 percent for the same period last year. That has resulted in a contraction of 116 basis points in operating margin to 8.69 percent.
Operating income for the quarter was $15.90 million, compared with $16.45 million in the previous year period.
However, the adjusted operating income for the quarter stood at $25.36 million compared to $24.98 million in the prior year period. At the same time, adjusted operating margin contracted 110 basis points in the quarter to 13.85 percent from 14.95 percent in the last year period.
Rohit Kapoor, Vice Chairman and chief executive officer, commented, "Our first quarter 2017 revenues increased 9.6% year-over-year, or 9.9% on a constant currency basis (non-GAAP), to $183.0 million. Our revenue growth was led by our Analytics segment which grew 25.8% year-over-year, or 26.4% on a constant currency basis. Our operations management businesses, which consist of our Insurance, Healthcare, Travel,Transportation and Logistics, Finance and Accounting and All Other (Banking and Financial Services, Utilities and Consulting) reportable segments, grew 4.7% year-over-year, or 4.9% on a constant currency basis."
Exlservice Holdings forecasts revenue to be in the range of $740 million to $760 million for fiscal year 2017. For fiscal year 2017, the company expects diluted earnings per share to be in the range of $2.50 to $2.60 on adjusted basis.
Working capital increases
Exlservice Holdings has recorded an increase in the working capital over the last year. It stood at $272.53 million as at Mar. 31, 2017, up 9.84 percent or $24.42 million from $248.11 million on Mar. 31, 2016. Current ratio was at 3.46 as on Mar. 31, 2017, down from 3.77 on Mar. 31, 2016.
Days sales outstanding went down to 52 days for the quarter compared with 55 days for the same period last year.
At the same time, days payable outstanding was almost stable at 4 days for the quarter, when compared with the previous year period.
Debt comes down significantly
Exlservice Holdings has recorded a decline in total debt over the last one year. It stood at $45.50 million as on Mar. 31, 2017, down 30.60 percent or $20.06 million from $65.56 million on Mar. 31, 2016. Total debt was 6.26 percent of total assets as on Mar. 31, 2017, compared with 10.21 percent on Mar. 31, 2016. Debt to equity ratio was at 0.08 as on Mar. 31, 2017, down from 0.14 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 36.81 for the quarter from 42.73 for the same period last year.
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