Datamatics Global Services Ltd. (DGSL) on Thursday reported a 14.6% year-on-year (YoY) decline in net profit for the fourth quarter ended March 31, 2025, at ₹44.9 crore, even as revenue from operations rose 20.5% to ₹497.2 crore, driven by steady business momentum.
Earnings before interest, tax, depreciation and amortisation (EBITDA) grew 15.3% YoY to ₹74.5 crore, while EBITDA margins contracted by 67 basis points (bps) to 15.0%, reflecting inflationary pressures and continued investments in strategic initiatives.
For the full fiscal year, DGSL posted a 3.4% increase in net profit to ₹205 crore, while revenues rose 11.2% to ₹1,723.4 crore. However, annual EBITDA declined 6% to ₹229.3 crore, with margins compressing by 244 bps to 13.3%.
Commenting on the results, Vice Chairman and CEO Rahul Kanodia said, “We delivered a steady performance in Q4FY25, supported by growth in key markets. Our AI-first approach will continue to drive value for customers, while we focus on strategic accounts and geographic expansion in the US and Europe.”
The board recommended a final dividend of ₹5 per share, equivalent to 100% of the face value.
On the balance sheet, net cash and investments stood at ₹415.3 crore, down from ₹653.1 crore in FY24. The company improved its working capital cycle, reducing Days Sales Outstanding (DSO) to 57 days from 67 days a year ago.
Operational Highlights
During Q4, Datamatics added seven new clients, including a North American heavy equipment financing firm and a European laboratory instruments manufacturer. New deals focused on AI-driven automation, enterprise application modernization, and customer experience enhancements.
Notable wins include implementing AI-powered FINATO for a specialty chemicals manufacturer and modernizing enterprise platforms for a U.S.-based credit operations firm.
Datamatics and its leadership received multiple recognitions, including Gartner naming it a Niche Player in the Magic Quadrant™ for Finance & Accounting BPO for the fourth consecutive year. Everest Group and ISG also recognized the company in various digital transformation and automation segments.
