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Datamatics Q4 profit declines 15% YoY; Recommends ₹5/shr dividend

Published on 15/05/2025 06:29 PM

Datamatics Q4 profit declines 15% YoY; Recommends ₹5/shr dividendDatamatics reported a 14.6% drop in Q4 profit to ₹44.9 crore, while revenue rose 20.5% year-on-year to ₹497.2 crore, driven by steady business momentum.By Poonam Behura  May 15, 2025, 6:29:01 PM IST (Published)2 Min ReadDatamatics Global Services Ltd. on Thursday reported a 14.6% year-on-year decline in net profit for the quarter ended March 31, 2025, at ₹44.9 crore, compared with ₹52.5 crore in the same period last year.

Revenue for the fourth quarter rose 20.5% to ₹497.2 crore from ₹412.7 crore, driven by steady business momentum across verticals. EBITDA rose 15.3% to ₹74.5 crore, while EBITDA margin narrowed slightly to 15% from 15.7% a year earlier.

Profit before tax (after exceptional items) stood at ₹55.5 crore, down 22.1% YoY. The company’s earnings per share (EPS) declined to ₹7.60 from ₹8.90.

For the full fiscal year FY25, Datamatics posted an 11.2% YoY rise in revenue to ₹1,723.4 crore. However, EBITDA for the year declined 6% to ₹229.3 crore, with margins at 13.3%, compared to 15.7% in FY24. Annual PAT was up 3.4% at ₹205 crore.

The company’s Board has recommended a final dividend of ₹5 per share for FY25.

Commenting on the results, Vice Chairman and CEO Rahul Kanodia said, “We delivered a steady performance in Q4FY25… Going forward, we will continue to focus on strategic accounts, expand in the US and Europe, and maintain cost discipline.”

He added that the company remains committed to its AI-first approach, with a focus on delivering real, measurable business outcomes.

Datamatics added seven new clients in the quarter and highlighted a number of strategic wins, including AI-led transformation deals with companies in North America and Europe. Notable partnerships include projects in finance automation, customer support, and legacy platform modernization.

The company continues to be recognised by leading analysts. Gartner named it a Niche Player in the Magic Quadrant for Finance & Accounting BPO for the fourth consecutive year. Everest Group and ISG also placed Datamatics as a Major Contender or Product Challenger in several service categories.

Datamatics, headquartered in Mumbai, is a technology, operations, and experience company with offerings spanning AI-powered solutions, intelligent automation, engineering services, and business process management. Its client base spans banking, insurance, healthcare, publishing, manufacturing, and government sectors, with delivery centres in the U.S., India, and the Philippines.Continue ReadingCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!Tagsshare market today