This small-cap IT firm, whose stock is down 21% YTD, reports 8% YoY growth in Q2 revenue; check operational highlights

2 min read | Updated on November 06, 2024, 09:13 IST

SUMMARY

Commenting on Q2FY25 results, Rahul Kanodia, Vice Chairman and CEO, said, "We are pleased to report year-over-year Q2 revenue growth of 8%. However, profitability faced headwinds due to a decline in volumes from some key customers and our investments in building FINATO as an AI-powered platform for finance transformation.”

Diluted earnings per share (EPS) came in at ₹7.18 against ₹8.35 in the year-ago period.

Datamatics Global Services Q2: Shares of Datamatics Global Services, an information technology consulting company, will be on the investors' radar on Wednesday, November 5, as the company released its September quarter results last evening.

As per the company's earnings release, the digital tech company reported an 8% year-on-year (YoY) increase in revenue from operations at ₹406.8 crore from ₹376.8 crore logged in the year-ago period.

EBITDA slipped by 17.2% YoY to ₹48.8 crore from ₹58.9 crore in the corresponding quarter of the previous fiscal.

EBITDA margin fell by 365 basis points YoY to 12% from 15.6% in the September 2023 quarter.

Profit after tax (PAT) after non-controlling interest (NCI) came in at ₹42.4 crore, down 14% from ₹49.3 crore.

Diluted earnings per share (EPS) came in at ₹7.18 against ₹8.35 in the year-ago period.

He continued, “Artificial intelligence is our strategic initiative, and we continue to upscale our AI capabilities. Google has recognized us as the ‘Strategic partner for the back office of the future.' Additionally, we have partnered with Microsoft to offer customized copilot solutions to accelerate AI adoption in enterprises.”

The company added that Datamatics expanded its client portfolio by adding 12 new customers during the quarter under review.

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Further, a new-age European bank selected Datamatics to digitise and automate critical banking processes to improve operational efficiency and customer experience.

Additionally, it said that a banking giant in the Middle East selected Datamatics to modernise the reporting of the core banking processes for actionable intelligence, efficient data management, and enhanced customer experience.

Datamatics is a digital technologies, operations, and experiences company that provides intelligent solutions for data-driven businesses to increase productivity and enhance the customer experience. The company has presence across four continents with major delivery centers in the USA, India, and Philippines.

Shares of Datamatics Global Services have slipped 21% on a year-to-date (YTD) basis. Over the past five years, the stock has jumped over 660%.

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