Datamatics hits 20% upper circuit on strong Q4FY23 results

Shares of Datamatics hit 20 per cent upper circuit to a record high of Rs 414.20 in Tuesday's intra-day trade, amid heavy volumes. The company had reported a strong-set of earnings for the quarter ended March 2023 (Q4FY23).

In Q4FY23, the company's revenue increased 32.9 per cent year-on-year (YoY) and 11.7 per cent quarter-on-quarter (QoQ) at Rs 416.30 crore. Earnings before interest and tax (Ebit), too, jumped 78 per cent YoY and 50 per cent QoQ at Rs 75.3 crore. EBIT margin, further improved 462 bps QoQ to 18.1 per cent, led by increase in revenue, and steady employee cost in Q4.

The company’s digital operations (45 per cent of mix) grew by 22.6 per cent QoQ and digital technologies (40.7 per cent of mix) grew 6.8 per cent QoQ, however digital experience declined 2.7 per cent QoQ.

"The digital operations industry-vertical-oriented operations and enterprise back-office operations segments are expected to witness highest volume of new work in next 5 years. Finance & accounting operations, meanwhile, are expected to grow at 9-10 per cent CAGR over the next couple of years and is estimated to reach $14.5 billion in 2025, " said Everest Group, NASSCOM.

During Q4FY23, the management added 21 new clients, while their LTM attrition remain elevated at 24.8 per cent. That apart, the company's board recommended total dividend of Rs 5 per equity share (i.e 100 per cent) of face value of Rs 5 each, which includes Rs 3.75 final dividend and Rs 1.25 special dividend per share.

Datamatics won multiple deals in Q4FY23, which includes a deal from US-based multinational conglomerate to automate data collection process using Datamatics intelligent automation platform.

Till 02:48 pm; trading volumes on the counter jumped nearly 10-fold, as around 6 million shares changed hands on the NSE and BSE. There were pending buy orders for 1.8 lakh shares on both the exchanges.