Mumbai, August 16, 2011: Datamatics Global Services (DGSL), the global Information Technology (IT) and Business Process Outsourcing (BPO) organization partnering several fortune 500 companies globally for delivering next-generation business solutions today announced the financial results for the first quarter ended as on June 30, 2011.
Q1FY12 Performance – Consolidated basis
- The Company’s revenues increased by 54.5% to Rs 101.68 crore as compared to Rs 65.81 crore during Q1FY11.
- Exports accounted for 90.1% of the total revenues during Q1FY12 at Rs 1.64 crore 45.8% up as compared to Rs 62.98 crore in Q1FY11.
- EBIDTA increased by 81.6% to Rs 7.50 crore as compared to Rs 4.13 crore in Q1FY11.
- EBIDTA margin improved by 110 bps to 7.4% as compared to 6.3% in Q1FY11.
- Net profit registered a 38.4% growth at Rs 6.70 crore as compared to Rs 4.84 crore during Q1FY11; net margin declined by 80 bps to 6.6% in Q1FY12 as compared to 7.4% in Q1FY11.
- Earning per share improved by 25.6% to Rs 1.03 during Q1FY12 as compared to Rs 0.82 during Q1FY11.
Q1FY12 Performance – Standalone basis
- The Company’s revenues increased by 16.8% to Rs 36.79 crore as compared to Rs 31.49 crore during Q1FY11.
- EBIDTA increased by 71.3% to Rs 3.53 crore as compared to Rs 2.06 crore in Q1FY11.
- Net profit registered a 21.4% growth at Rs 4.36 crore as compared to Rs 3.59 crore during Q1FY11; net margin improved by 50 bps to 10.8% in Q1FY12
Acquisition of CIGNEX Global Holding Corporation & Vista Info Systems
- During the quarter, DGSL acquired majority control in CIGNEX Global Holding Corporation, the global leader in commercial Open Source & SAP Connect solutions for over 10 years, having a topline of US$ 22 million. The acquisition follows in a year after Datamatics entered into a JV partnership with the company. Post acquisition the company will be a subsidiary of Datamatics.
- CIGNEX has a strong history of above market average, profitable growth. The company benefits from its focused strategy on Open Source Enterprise Content Management and a highly experienced team of 400 plus consultants. CIGNEX provides solutions across verticals, which include Web Content Management, Portals & Social Collaboration, e-commerce, and Documents & Records Management.
- This acquisition will also benefit Datamatics in increasing its global footprint, with CIGNEX’s presence in markets like San Francisco and Singapore. Domestically, it would reinforce Datamatics’ strategy for establishing base in tier 2 cities through a strong presence in Ahmedabad.
- CIGNEX brings with it a concrete global client base, viz. Electronic Arts, Medco, Sesame Street, Daiichi Sankyo, Nomura Bank, Singapore Telecom and DBS Bank.
- The company also acquired Vista Info Systems, thereby increasing its focus on Embedded Systems space in Aeronautics and Automative sector.
- With its alliance with Vista, the Company has made foray into the captive space.
- This acquisition will also strengthen the Company’s domestic presence in Bangalore &Chennai.
Other operational highlights
- The Company also launched operations in Bosnia, whereby apart from providing BPO services, the company would offer a suite of services inclusive of Document Management Services, Publishing & Media Services; and Finance & Accounting Services.
- For second consecutive year, the Company was featured amongst the Global Top 10 Mid-Tier Industry Specific BPO Service Providers in the Global Services 100 list.
- The company was ranked among the top 20 leaders in financial services (Insurance, Banking & Markets) by International Association of Outsourcing Professionals (IAOP).
Commenting on the numbers posted, Mr. Rahul Kanodia, Vice Chairman & CEO, Datamatics Global Services, said: “The quarter witnessed huge growth rates on account of acquisitions, exposure to emerging geographies, growing expertise in industry verticals and the focus on the developed markets. In sync with the industry sentiment we are looking forward to implement our expansion plans via both the organic and inorganic route aggressively during the upcoming quarters; while optimizing costs and enhancing value. We expect the growth plans to consecutively reflect immensely in our performance for the consecutive quarters.”