Datamatics had a remarkable Q4, with revenue up 32.9 per cent year-on-year (YoY) at Rs 416.30 crore and earnings before interest tax (EBIT) increasing by 78 per cent YoY at Rs 75.30 crore. The company’s profit after tax jumped 30.9 per cent YoY to Rs 59.70 crore.
This was the first quarter in which the company surpassed the Rs 400 crore revenue mark. This revenue growth was broad-based, driven by all three segments of Digital Operations, Digital Experiences, and Digital Technologies.
More From This Section
Despite the global economic situation, the company managed to maintain a healthy margin 20.2 per cent, up 378 bps YoY. EBIT margins saw considerable improvement from 2.2 per cent to 9.1 per cent in Q4FY23 primarily due to renegotiated prices and tighter cost controls. In Q4FY23, Datamatics signed a total contract of about $20 million and added about 21 new customers.
The management said it expects to see a sustained growth momentum for FY23- FY24, given a decent pipeline of opportunities. They are optimistic about the overall demand and confident of maintaining an overall revenue growth of 14 per cent to 15 per cent in FY24.
In terms of geographical footprint, US remains largest geography with 54 per cent of the company’s total business, followed by India at 27 per cent, rest of the world including UK and Europe at 19 per cent. The company’s top 5, 10 and 20 clients contributing to 24 per cent, 37 per cent and 52 per cent respectively.
The management further said that there's no impact on the demand outlook that remains equally robust, but one is seeing some softness in the US BFSI sector, and one is seeing some headwinds, particularly out of US and Europe.
However, as far as Datamatics is concerned, the management is still seeing a very healthy pipeline. But they are being a bit cautious, because of the economic challenges that they're having, inflation and recession and things like that, it added.
Datamatics a digital operations, technology and experiences company that provides intelligent solutions for data-driven businesses to increase productivity and enhance the customer experience. With a complete digital approach, Datamatics portfolio spans across Digital Technology Solutions, Business Process Management and Engineering Services powered by Artificial Intelligence.