The Hindu Business Line : Zensar Tech net down 9%

IT/ BPO company Zensar Technologies is set to achieve Rs 100-crore net profit for the fiscal, despite a 9 per cent drop in the net for the quarter ended June 2007. Addressing the media after the annual general meeting of the company, Mr Ganesh Natarajan, CEO, and also the Global CEO for Zensar Technologies (UK) Ltd, said the company was on track for achieving the Rs 100-crore net profit mark.

The company has recorded a net profit tax of Rs 13.35 crore for the quarter ended June 2007 compared with Rs 14.68 crore during the corresponding quarter of the previous fiscal. He pointed out that the drop was a result of the appreciating rupee against the dollar.

He said revenue was Rs 187.90 crore for the quarter ended June 30, 2007, with the year-on-year growth at 36 per cent (Rs 137.78 crore) and sequential quarter growth of 10 per cent (Rs 171.36 crore). Basic earnings per share before exceptional income was at Rs 5.53 (Rs 6.25). To ward off the appreciating rupee concerns, the company would be looking at a 5 per cent increase in prices for its old clients, said.

Seven clients had agreed for this, Mr Ganesh said, and added that two out of them were among its top 10 clients. He said he was hopeful of at least 30 per cent of the clientele agreeing to the new hiked price. For the new clients, he said would be about 7 to 8 per cent higher.

Looking at the expansion programme, Mr Ganesh said it had signed a joint venture agreement with the Tokyo-based EZA, now renamed as Zensar Advanced Technologies. It has a turnover of $4.2 million and has a 30-member team.