eClerx reported sharp recovery in numbers for the September quarter after 2 weak quarters. Margins hit a three-year high, and the rebound in the Italian operations was the other highlight of the quarter’s performance.

“We did expect a recovery from low of Q1 and we were somewhat surprised by the positive momentum that we saw in Q2 which was primarily led by sharp recovery in our Italian business,” Rohitash Gupta, CFO, eClerx said in an interview to CNBC-TV18.

Speaking about the re-imposed lockdown in European countries, Gupta said that the company is better prepared now and thus lockdown impact should be limited.

“There is an impending second wave and some lockdown measures are being taken in European countries. That may have some bearing although the world, our clients, and ourselves are much better prepared now and hence the impact of that second wave is likely to be less than what we saw in Q1,” he said.

Gupta further added, “Based on these factors and the current pipeline, we have said that H2 will be better than H1.”

On margins, Gupta believes that some margin savings will be retained when normalcy returns. He is expecting margins to settle between FY20 and H1FY21 levels.

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(Edited by : Santosh Nair)