Datamatics shares end 20% higher on strong Q4 earnings

Shares of Datamatics Global Services hit a fresh 52-week high today after the firm reported a strong set of earnings for the quarter ended March 2023. The stock rose to a new high of Rs 414.2 today, rising 19.99% intraday on BSE. It has gained 41.03% in the last six sessions. The stock opened with a gain of 5.65% at Rs 364.70 today. Later, it closed 19.84% higher at Rs 413.70 on BSE.

In a year, Datamatics Global Services stock has zoomed 38.8% and gained 49.65% in 2023. Market cap of the firm rose to Rs 2438.73 crore. A total of 2.59 lakh shares of the firm changed hands, amounting to a turnover of Rs 10.34 crore on the BSE.

In terms of technicals, the relative strength index (RSI) of Datamatics Global Services stands at 78.8, signaling the stock is overbought. The stock has a one-year beta of 1.7, indicating high volatility during the period. Datamatics Global Services shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

The firm reported a 30.91% rise in profit to Rs 59.72 crore in Q4 against Rs 45.62 crore profit in the corresponding quarter of the previous fiscal.

Revenue rose 32.9 per cent year-on-year (YoY) to Rs 416.28 crore against the revenue of Rs 313.30 crore in the March quarter of FY 22.

Revenue climbed 11.7 per cent quarter-on-quarter (QoQ) from Rs 372.64 crore. Earnings before interest and tax (Ebit) climbed 78 per cent YoY and 50 per cent QoQ at Rs 75.3 crore. EBIT margin improved 462 bps QoQ to 18.1 per cent, led by an increase in revenue and steady employee cost in Q4.

The board of the firm also recommended a final dividend of Rs 3.75 per equity share of the face value of Rs 5 each and special dividend of Rs 1.25 per equity share of the face value of Rs. 5 each for the financial year ended March 31, 2023.

Datamatics is a digital technologies, operations, and experiences company that enables enterprises to go deep in digital to boost their productivity, customer experience and competitive advantage.

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