Shares of Datamatics Global Services (DGSL) hit a new high of Rs 609.20 in intraday trade on Monday, surging 12% on the BSE. It surpassed the previous high of Rs 577.55 on June 5, 2023.

Shares of the IT-enabled service have more than doubled or surged 106% in the past seven weeks after the company reported solid earnings for the March quarter (Q4FY23). Given the many opportunities, management said it expects continued growth momentum in FY23-FY24. They are optimistic about overall demand and confident of maintaining overall revenue growth of 14% to 15% in FY24.

DGSL provides solutions for data-driven businesses to improve their productivity and customer experience. The company’s services can be divided into three segments – Digital Operations, Digital Experience and Digital Technology. The company also develops products in robotic process automation, advanced analytics, business intelligence and automated billing systems.

Headquartered in Mumbai, DGSL, through its subsidiaries, has offices in North America, Europe, Australia and Asia. DGSL’s client base spans industries such as BFSI, manufacturing, hospitality, publishing and international organisations.

Regarding 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.

DGSL performed well in Q4, with revenue up 32.9% YoY to Rs 416.3 crore and 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.

Despite the weak global economy, the company maintained a healthy margin of 20.2%, up 378 basis points year-over-year. EBIT margin improved significantly from 2.2% to 9.1% in Q4FY23, mainly due to renegotiated prices and tighter cost controls. In Q4 FY23, Datamatics signed contracts with a total value of approximately $20 million and added about 21 new customers.

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 some headwinds, especially in the US and Europe.

However, management still sees a very healthy pipeline for Datamatics. But it added that they’re a little cautious because they’re facing economic challenges, inflation and recession and things like that.

The global BPM market is expected to reach $290 billion by 2023. The segments expected to see the largest volume of new work over the next five years include BPM for industry verticals, enterprise back-office BPM, and contact centres.