Shares of Datamatics Global Services Ltd plunged over 5.5% to ₹623 in early trade on Thursday after the company posted a 14.6% year-on-year drop in net profit for the March quarter. The IT services company reported a consolidated net profit of ₹44.9 crore for Q4 FY25, down from ₹52.5 crore in the same period last year, reflecting pressure on profitability despite a strong revenue growth.

Revenue for the quarter rose 20.5% YoY to ₹497.2 crore, compared to ₹412.7 crore in the corresponding period last year, supported by continued business momentum across segments. However, EBITDA increased 15.3% YoY to ₹74.5 crore, while margins contracted to 15% from 15.7%, indicating rising costs.

Profit before tax for the quarter declined 22.1% YoY to ₹55.5 crore. The company’s EPS also slipped to ₹7.60 from ₹8.90 a year ago.

For the full financial year FY25, Datamatics reported an 11.2% increase in revenue to ₹1,723.4 crore. However, annual EBITDA declined 6% to ₹229.3 crore, with margins narrowing to 13.3% from 15.7% in FY24. Net profit for the year grew 3.4% to ₹205 crore.

The Board of Directors recommended a final dividend of ₹5 per share for FY25.

Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.