Datamatics Global Services Limited — Earnings Release 2020

May 14, 2020

May 14, 2020

To, Corporate Communication Department BSE Limited Phiroze Jeejeeboy Towers, Dalal Street, Mumbai – 400 001. BSE Scrip Code: 532528

Listing Department National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051. NSE Code: DATAMATICS

Sub: Press Release

Dear Sir/Madam,

Please find attached herewith press release titled "Datamatics FY20 revenue at INR 12,033.2 Million; up 6.2% y-o-y" for your information and record.

Kindly take the above on your record.

For Datamatics Global Services Limited

DIVYA KUMAT

Digitally signed by DIVYA KUMAT DN: c=IN, o=Personal, postalCode=400093, st=Maharashtra, 2.5.4.20=6f9548601d551995088a559f1b68a fda63dfb4853a185b80364055946ef49ae6, serialNumber=9cb8f5fd609712531001a42f2 8972611423be4e486c0c1c749be33c3a8715 153, cn=DIVYA KUMAT Date: 2020.05.14 18:30:55 +05'30'

Divya Kumat EVP, Chief Legal Officer and Company Secretary (FCS: 4611)

Press Release For Immediate Release

Datamatics FY20 revenue at INR 12,033.2 Million; up 6.2% y-o-y

May 14, 2020, Mumbai: Datamatics Global Services Ltd. (DGSL), a global Technology, BPM and Digital Solutions company, today announced the financial results for the fourth quarter and full year ended March 31, 2020.

Consolidated Financial Highlights – FY20

• Revenue at INR 12,033.2 million; up 6.2% in rupee terms and 5.5% in constant currency y-o-y
• Reported EBITDA at INR 1,235.7 million; down 7.7% y-o-y
• Reported EBITDA margin was at 10.3%; down 154 bps y-o-y. The margin was mainly impacted due to our continuous investment in building RPA product and Covid-19 pandemic crisis.
• FY20 witnessed one time exceptional cost of goodwill impairment of INR 157.7 million which resulted in to a lower PBT of INR 878.9 million, adjusted PBT without the goodwill impairment cost was INR 1,036.6 million for the year under review as against PBT of INR 1,147.5 million in FY19
• PAT (after minority interest) at INR 638.6 million for FY20 as against INR 745.1 million in FY19
• EPS (Diluted) at INR 10.83 for FY20 as against INR 12.53 in FY19

Consolidated Financial Highlights – Q4FY20

• Revenue at INR 3,103.8 million; up 1.1% y-o-y and up 1.4% q-o-q
• Reported EBITDA at INR 282.1 million; down 28.0% y-o-y and up 7.4% q-o-q
• Reported EBITDA margin was at 9.1%; down 367 bps y-o-y and up 51 bps q-o-q. The margin was mainly impacted due to our continuous investment in building RPA products and Covid-19 pandemic crisis.
• The quarter witnessed one time exceptional cost of goodwill impairment of INR 157.7 million which resulted in to a lower PBT of INR 100.3 million, adjusted PBT without the goodwill impairment cost was INR 258.0 million for Q4FY20 as against INR 210.3 million in Q3FY20 and INR 355.3 million in Q4FY19
• PAT (after minority interest) at INR 115.5 million for the quarter under review as against INR 252.5 million in Q4FY19 and INR 131.3 million in Q3FY20
• EPS (Diluted) at INR 1.96 for Q4FY20 as against INR 4.27 in Q4FY19 and INR 2.23 in Q3FY20

Commenting on the results and financial performance, Rahul Kanodia, Vice Chairman and CEO said,

"These are unprecedented times, and I would like to thank all Datamaticians, who worked 24/7 to ensure employee safety and honor all our customer commitments.

The crisis created by COVID 19 has weighed on our Q4 performance, which in turn has also impacted our overall annual results. Nevertheless, given our broad service portfolio and wider industry presence, I am hopeful that we will navigate the stress in the coming year."

Operational Highlights

• For FY20, USA continues to be major contributor at 57% whereas contributions from UK, Europe, India and Rest of World stood at 14%, 2%, 19% and 8% respectively.
• In terms of sectorial contribution to the revenue, BFSI, Publishing and Manufacturing were the top three sectors contributing 28%, 26% and 9% respectively.
• Top 5 clients contributed 24%; top 10 clients contributed 33%, whereas contribution from top 20 clients to the revenue for stood at 46%.

Response to Covid-19

• In the wake of COVID-19, Datamatics had its business continuity plan ready and in a matter of days enabled majority of employees to work-from home across the globe.
• Datamatics has clearly defined its priorities during the crisis. These include focusing on employee well-being, servicing and retaining customers and tightly managing cashflows.
• Considering lot of enterprises are under stress due to COVID-19 situation, Datamatics has extended free usage of three TruBots under 'COVID-19 Enterprise Support Program' until 30th September 2020.

Business Updates

• Added 8 new customers in Q4 FY20 and 24 new customers in FY20.
• Datamatics is aggressively investing in expanding its partner network and has over 100 partners across the globe. Notable inclusions in the channel ecosystem are TCS as global strategic partner and Ingram Micro, a global broad-based IT distributor, as preferred reseller in India.

Awards and Recognition

• Everest Peak Matrix Intelligent Document Processing (IDP) Technology Vendors 2020 featured TruCap+ as 'MAJOR CONTENDER'
• Everest Group PEAK Matrix™ for Finance and Accounting (F&A) Digital Capability Platform (DCP) Solutions Assessment 2020 recognised Datamatics as 'STAR PERFORMER'
• International Association of Outsourcing Professionals (IAOP) featured Datamatics in the 'IAOP global outsourcing 100 list 2020'
• Gartner Peer Insights recognised TruBot as 'Voice of the Customer': Robotic Process Automation Software, 2019
• Gartner recognised TruBot in Magic Quadrant for Robotic Process Automation Software
• NelsonHall recognised TruBot as 'HIGH ACHIEVER' in NEAT for Intelligent Automation Platforms 2019
• Everest Group PEAK Matrix Assessment, 2019: RPA Technology Vendor Landscape featured Datamatics as 'STAR PERFORMER'

About Datamatics Global Services Limited

Datamatics (BSE: 532528 | NSE: DATAMATICS) provides intelligent solutions for data-driven businesses to increase productivity and enhance the customer experience. With a complete digital approach, Datamatics portfolio spans across Information Technology Services, Business Process Management, Engineering Services and Big Data & Analytics all powered by Artificial Intelligence. It has established products in Robotic Process Automation, Intelligent Document Processing, Business Intelligence and Automated Fare Collection. Datamatics services global customers across Banking, Financial Services, Insurance, Healthcare, Manufacturing, International Organizations, and Media & Publishing. The Company has presence across 4 continents with major delivery centers in the USA, India, and Philippines. To know more about Datamatics, visit www.datamatics.com

Safe Harbour

Some of the statements in this update that are not historical facts are forward-looking statements. These forward-looking statements include our financial and growth projections as well as statements concerning our plans, strategies, intentions and beliefs concerning our business and the markets in which we operate. These statements are based on information currently available to us, and we assume no obligation to update these statements as circumstances change. There are risks and uncertainties that could cause actual events to differ materially from these forward-looking statements. These risks include, but are not limited to, the level of market demand for our services, the highly-competitive market for the types of services that we offer, market conditions that could cause our customers to reduce their spending for our services, our ability to create, acquire and build new businesses and to grow our existing businesses, our ability to attract and retain qualified personnel, currency fluctuations and market conditions in India and elsewhere around the world, and other risks not specifically mentioned herein but those that are common to industry.

For media queries, please contact:

Sudeshna Mukherjee	Asha Gupta
Marketing & Corporate Communications	Christensen Investor Relations
sudeshna.mukherjee@datamatics.com	agupta@christensenir.com
+91-7738574137	022 42150210