EXL June Quarter Net Drops 16.3 Per Cent to $7.7 Million

BPO firm Exl Service Holdings on Tuesday reported a 16.3 per cent decline in net profit at $7.7 million for the quarter ended June 2014.

This was against a net profit of $9.2 million in the same period last year, ExlService Holdings said in a statement.

However, the company's revenues increased 3.1 per cent to $119.7 million in the reported quarter from Rs 116 crore in the April-June 2013 quarter.

"EXL experienced strong second quarter volume growth, driven by strength in our transformation segment which grew 36.1 per cent year over year. In particular, decision analytics, experienced annual y-o-y growth of 48 per cent," EXL vice chairman and CEO Rohit Kapoor said.

He added that new analytics engagements in the banking and healthcare industries have been driving growth.

"Decision analytics now represents about 12 per cent of EXL's total revenues. In outsourcing, we migrated 49 new processes for new and existing clients across finance and accounting, insurance, and travel, transportation and logistics," he said.

For 2014, EXL has upwardly revised its revenue guidance to $490 million to $503 million to include the acquisition of Blue Slate and based on strong revenue performance in the first half of the year.

"Our revenue guidance excludes the impact of the reimbursement of disentanglement costs," EXL chief financial officer Vishal Chhibbar said.

The revenues were lower by 1.7 per cent sequentially from $121.8 million (for quarter ended March 31, 2014) due to the reimbursement of disentanglement costs.

Outsourcing services revenues for the quarter ended June 30, 2014 stood at $94.3 million, while those from transformation services were at $25.4 million.

During the reported quarter, EXL won seven new clients, including 4 transformation clients. It also expanded multiple outsourcing services relationships, including migrating 49 new processes in the second quarter of 2014.

Its headcount stood at 23,071 people as of June 30, 2014 with the addition of 271 people during the quarter under review.

The attrition rate was 34.1 per cent compared with 26.8 per cent for the quarter ended June 30, 2013 and 28.8 per cent for the quarter ended March 31, 2014.