Shares of Datamatics Global Services hit a fresh high of Rs 509.35, surging 8% on the BSE in heavy intraday trading on Friday. Shares of IT support services have rallied 71% over the past month after the company reported strong earnings for the March quarter (Q4FY23).

Datamatics performed well in Q4, with revenue up 32.9% YoY to Rs 416.3 crore and earnings before interest and taxes (EBIT) up 78% YoY to Rs 75.3 crore. The company’s profit after tax rose 30.9% year-on-year to Rs 59.7 crore.

This was the first quarter in which the company’s revenue crossed the Rs 400 crore mark. This revenue growth was broad-based and driven by three segments: Digital Operations, Digital Experience and Digital Technology.

The company maintained a healthy margin of 20.2%, up 378 basis points year-over-year, despite the weak global economy. EBIT margin improved significantly from 2.2% to 9.1% in Q4FY23, mainly due to renegotiated prices and tighter cost controls. In Q4FY23, Datamatics signed contracts with a total value of approximately $20 million and added approximately 21 new customers.

Management said it expects continued growth momentum in FY23-FY24 given the large number of opportunities. They are optimistic about overall demand and confident of maintaining overall revenue growth of 14% to 15% in FY24.

In terms of geographic footprint, the US remains the largest geographic region, accounting for 54% of the company’s total business, followed by India at 27%, and the rest of the world including the UK and Europe at 19%. The company’s top 5, 10, and 20 largest customers contributed 24%, 37%, and 52%, respectively.

Management further stated that there is no impact on the equally strong demand outlook, but one is seeing some softness in the US BFSI sector and is seeing some headwinds, especially in the US and Europe.

However, management still sees a very healthy pipeline when it comes to Datamatics. But they are a little cautious because they are facing economic challenges, inflation and recession and things like that, it added.

Datamatics is a digital operations, technology and experience company that provides data-driven businesses with intelligent solutions to increase productivity and enhance the customer experience. The Datamatics portfolio takes a complete approach to digitalisation, encompassing digital technology solutions powered by artificial intelligence, business process management and engineering services.