September 10, 2020, Mumbai: Datamatics Global Services Ltd. (DGSL), a global Technology, BPM and Digital Solutions company, today announced the financial results for the first quarter ended June 30, 2020.
Consolidated Financial Highlights – Q1FY21
- Revenue at INR 2,770.9 million; down 4.5% y-o-y and down 10.7% q-o-q
- EBITDA at INR 285.6 million; down 19.4% y-o-y and up 1.2% q-o-q
- EBITDA margin was at 10.3%; down 190 bps y-o-y and up 122 bps q-o-q. The margin was mainly impacted due to COVID-19
- PAT (after non-controlling interest) at INR 135.1 million; down 29.8% y-o-y and up 17.0% q-o-q
- EPS (Diluted) at INR 2.29 for Q1FY21 as against INR 3.26 in Q1FY20 and INR 1.96 in Q4FY20
Commenting on the results and financial performance, Rahul Kanodia, Vice Chairman and CEO said,
"The pandemic has scaled back on certain projects and delayed decisions on newer ones. This has impacted the quarter revenues and margins. Simultaneously, we have taken steps to reduce operating costs, however its effect will be seen in subsequent quarters. We are seeing green shoots of business recovery and are confident that we will be back on the growth path.”
Operational highlights
- For Q1FY21, USA continues to be major contributor at 54% whereas contributions from UK, Europe, India and Rest of World stood at 13%, 5%, 20% and 8% respectively
- In terms of sectorial contribution to the revenue, BFSI, Technology & Consulting and Education & Publishing were the top three sectors contributing 29%, 22% and 19% respectively
- Top 5 clients contributed 25%; top 10 clients contributed 35%, whereas contribution from top 20 clients to the revenue for stood at 48%
Response to Covid-19
- Implemented all the guidelines recommended by the Government to ensure the safety and well-being of employees
- Work from home enabled for majority of employees
- Focus on Customers & understand their business priorities and align strategies as per their business requirements
- Standardized communication platforms across the Company to ensure collaboration
- Enhanced cyber security with employee awareness, security monitoring tools and remote monitoring tools
- Managing cash reserves and execute on cost-reduction strategies wherever possible such as surrendering real estate space and renegotiating contracts
- Extended free usage of three TruBots under ‘COVID-19 Enterprise Support Program’ until 30th September 2020
Business Updates
- Added 4 new customers in Q1 FY21
- Strategic partnership with Ingram Micro, a global broad-based IT distributor, extended to META (Middle-East, Africa and Turkey) region.
- Unveiled refreshed Datamatics logo
- As a part of our CSR initiative, Datamatics helped to help the Brihanmumbai Municipal Corporation (BMC) manage the migrant workers crisis by setting up an emergency digital call center and collaborated with NGOs to provide food and supplies to over 6.5 lakh citizens. Additionally we set up data analytics cell that gave real-time insights and updates of the ground situation to BMC officials. (https://youtu.be/bNXeu6qE5jk)
Awards and Recognition
- Datamatics recognised for being among the Top Companies in the Private sector at the United Nations Global Compact Network India (UN GCNI) Innovative Practices Award “Women at Work” - 2020
- Datamatics Finance and Accounting Solutions recognised in ‘Datamatics: Re-envisioning Finance through Intelligent Solutions’ report by ISG
- TruBot RPA case studies featured in Gartner’s ‘Tool: Banking and Insurance Use Cases to Drive Hyperautomation’
About Datamatics Global Services Limited
Datamatics (BSE: 532528 | NSE: DATAMATICS) provides intelligent solutions for data-driven businesses to increase productivity and enhance the customer experience. With a complete digital approach, Datamatics portfolio spans across Information Technology Services, Business Process Management, Engineering Services and Big Data & Analytics all powered by Artificial Intelligence. It has established products in Robotic Process Automation, Intelligent Document Processing, Business Intelligence and Automated Fare Collection. Datamatics services global customers across Banking, Financial Services, Insurance, Healthcare, Manufacturing, International Organizations, and Media & Publishing. The Company has presence across 4 continents with major delivery centers in the USA, India, and Philippines. To know more about Datamatics, visit www.datamatics.com
Safe Harbour
Some of the statements in this update that are not historical facts are forward-looking statements. These forward-looking statements include our financial and growth projections as well as statements concerning our plans, strategies, intentions and beliefs concerning our business and the markets in which we operate. These statements are based on information currently available to us, and we assume no obligation to update these statements as circumstances change. There are risks and uncertainties that could cause actual events to differ materially from these forward-looking statements. These risks include, but are not limited to, the level of market demand for our services, the highly-competitive market for the types of services that we offer, market conditions that could cause our customers to reduce their spending for our services, our ability to create, acquire and build new businesses and to grow our existing businesses, our ability to attract and retain qualified personnel, currency fluctuations and market conditions in India and elsewhere around the world, and other risks not specifically mentioned herein but those that are common to industry.
For media queries, please contact:
Sudeshna Mukherjee
Marketing & Corporate Communications
sudeshna.mukherjee@datamatics.com
