Home Economy ExlService’s margins hit due to rupee rise

ExlService’s margins hit due to rupee rise


New Delhi : ExlService Holdings Inc, one of India’s leading business process outsourcing (BPO) firms, Wednesday said its margins have been hit in the year ending December 2007 due to the rupee appreciation.

The Nasdaq-listed BPO firm’s gross margin stood at 36.8 percent in 2007 compared to 39.4 percent in 2006. It also reported a decreased operating margin of 9.6 percent against 12.4 percent the previous year.

However, the company’s revenue for the fourth quarter of 2007-08 increased 28.2 percent to $50.4 million from $39.3 million in the quarter ended Dec 31, 2006.

The company bagged 38 new clients during 2007 and is planning to open its new operating centre in the Philippines during the second quarter of 2008, while it will continue to explore investment opportunities abroad.

“We achieved our financial objectives while simultaneously redeploying capital into critical investments in strategic account management and sales and marketing. Our results are even more impressive given the significant appreciation of the Indian rupee against the US dollar during 2007,” EXL chief financial officer Matt Appel said in a statement.

Based in New York, EXL primarily serves over 1,000 global firms in the banking, financial services, insurance, utilities, healthcare, telecommunications and transportation sectors.