Q3 2025 Datamatics Global Services Ltd Earnings Call Transcript
Key Points
- Datamatics Global Services Ltd (BOM:532528) reported a revenue growth of 15.2% year-on-year and 4.6% quarter-on-quarter, indicating strong performance across digital technologies, operations, and experiences.
- The company improved its EBIT margin by 84 basis points to 10.5%, driven by cost optimization and disciplined execution.
- Datamatics expanded its client portfolio by adding 12 new customers, including a significant AFC customer, showcasing successful business development efforts.
- The acquisition of TNQ Tech enhances Datamatics' presence in the European market and solidifies its position as a market leader in digital content, serving 9 of the 10 largest publishers globally.
- The integration of Dextara is progressing smoothly, with successful cross-selling of services to five customers, indicating effective synergy realization from acquisitions.
- The company's EBITDA margin for the quarter stood at 12.8%, which is lower compared to historical performance, indicating room for improvement in operational efficiency.
- There were challenges with a large deal signed in FY23, leading to its termination due to payment issues, impacting expected revenue growth.
- The integration of Dextara has not yet resulted in the aggressive growth initially anticipated, suggesting potential delays in realizing full synergies.
- The company continues to invest heavily in technology, burning approximately INR40-50 crore annually, with returns on these investments yet to be fully realized.
- The US market presents uncertainties due to potential policy changes with the new administration, which could impact outsourcing and business operations.
Ladies and gentlemen, good day and welcome to Datamatics Global Service Limited Q3 FY25 earnings 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, Manav.
Good afternoon to all the participants in the call today.
Welcome to the Q3 FY25 earnings call of Datamatics Global Services Limited. The results and presentation have been already made to you and it is also available on the website of Datamatics.
In case anyone hasn't received a copy of press release or presentation, please do write to 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 company represented by Rahul Kanodia, Vice Chairman and CEO; Ankush Akar, SVP and Chief Financial Officer; Mitul
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