Q2 2025 Datamatics Global Services Ltd Earnings Call Transcript
Key Points
- Datamatics Global Services Ltd (BOM:532528) reported a revenue growth of 8% year-on-year for Q2 FY '25, driven by new client acquisitions across digital technologies, operations, and experiences.
- The company expanded its client portfolio by adding 12 new customers in the quarter, including a global logistics leader.
- Datamatics has been recognized by Google as a strategic partner for back-office solutions and has partnered with Microsoft to develop copilot solutions, enhancing its AI capabilities.
- The company is actively investing in AI solutions and has seen positive market responses, with significant investments recognized by major partners like Google and Microsoft.
- Datamatics maintains a healthy balance sheet with net cash and investments totaling 615 crores as of September 30, 2024.
- The EBIT margin for Q2 FY '25 was 9.7%, reflecting margin compression due to lower volumes in the tax processing business.
- Digital technology EBIT margins were notably low at 4.2%, attributed to significant investments in AI and a large portion of India-centric business.
- The company experienced unexpected volume shrinkage in digital operations, impacting margins and revenue.
- Client concentration has decreased, with the top five clients contributing 21% of revenue, down from previous levels.
- The macroeconomic environment presents uncertainties, including geopolitical tensions and economic softness in Europe, which could impact future growth.
Ladies and gentlemen, good day, and welcome to Datamatics Global Services Limited Q2 FY '25 earnings conference call as a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call? (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Pratik Jagtap from E&Y Investor Relations. Thank you, and over to you, sir
Thank you Thanmaya, Good evening to all the participants in the call today.
Welcome to the Q2 FY25 earnings call of Datamatics Global Services Limited. The results and presentations have been already mailed to you and it is also available on the website of Datamatics. In case anyone has not received a copy of this release and presentation. Please do write us and we will be happy to send you all to take us through the results today and to answer your questions we have with us, the top management of the
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
