Exlservice Holdings (EXLS), a provider of business process solutions, has announced a 15.96 percent decline in profit for the quarter ended Jun. 30, 2014. The company earned $7.76 million or $0.23 a share in the second-quarter compared with $9.24 million or $0.27 a share a year ago. Adjusted earnings per share came in at $0.41, when analysts expected $0.39.
Revenue during the second-quarter climbed 3.22 percent to $119.74 million from $116 million in the last year period.
Gross margin contracted by 414 basis points over the last year period to 32.14 percent. Total expenses as a percentage of revenues increased to 94.91 percent from 88.94 percent in the same period last year. That has resulted in contraction of 597 basis points in operating margins to 5.09 percent.
The company reported operating income of $6.10 million, compared with $12.83 million in the previous year period.
Rohit Kapoor, vice chairman and CEO, said, ''EXL experienced strong second quarter volume growth, driven by strength in our transformation segment which grew 36.1% year over year. In particular, decision analytics, experienced annual year-over-year growth of 48.0%.''
Commenting on guidance for 2014, the company said, "We are upwardly revising our 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. We are maintaining our adjusted diluted EPS guidance of $1.70 to $1.80. Our revenue and adjusted EPS guidance excludes the impact of the reimbursement of disentanglement costs.''
Cash Position
As on Jun. 30, 2014, the company's cash balance stood at $160.94 million, up 40.47 percent or $46.37 million from Jun. 30, 2013.
Working Capital
Exlservice Holdings has witnessed an increase in the working capital over the last one year. The company's working capital stood at $203.24 million as at Jun. 30, 2014, up $51.43 million or 33.88 percent from $151.81 million on Jun. 30, 2013. It registered an increase in current ratio to 3.92 as at Jun. 30, 2014 from 3.33 on Jun. 30, 2013.
Debt Position
Exlservice Holdings has witnessed a decline in the total debt over the last one year. As on Jun. 30, 2014, total debt stood at $2.04 million, down 40.84 percent or $1.40 million, from Jun. 30, 2013. The company's total debt was 0.41 percent of total assets as on Jun. 30, 2014, compared with 0.79 percent on Jun. 30, 2013.
Shares of the company declined $0.41 or 1.37 percent to settle at $29.41 on Monday.