Zensar’s Q1 PAT declines 6%

Our Bureau Mumbai | Updated on August 07, 2019

Pune-based IT services firm Zensar Technologies reported a 5.8 per cent decline in profit after tax in the quarter ended June 30 at ₹78.7 crore from ₹83.6 crore in the same period last year.

Revenues for the company grew 20.8 per cent in Q1 to ₹1,066 crore.

In dollar terms, Zensar reported year-on-year revenue growth of 16.4 per cent at close of Q1FY20 from $131.7 million to $153.3 million and 3.1 per cent sequentially. Profit after tax fell 9.3 percent to $11.3 million in the quarter compared with the same quarter last year.

Digital revenues continue to grow and have moved up by 28.3% YoY and is now 48.5% of Q1FY20 revenue.

Sandeep Kishore, Chief Executive Officer and Managing Director, Zensar Technologies, told BusinessLine that, “Digital has grown significantly this quarter, contributing 48.5% of the overall revenues fuelled by the exponential growth in our Cloud, Digital Led next gen CIS business posting approximately 70.3 % YoY growth. Our total order booking for this quarter has been 160 M USD TCV. Our PAT declined by about 9 percent yoy. The call out there is that in Q4 we had significant other income because we announced divestment of rest of the world business,”

Zensar added 43 new clients in the quarter, taking the total to 289.

“We’ve always called out to work with fewer customers and do richer and multiple engagements with them. That is why we divested the Rest of the World business. We want to work with clients that have headroom to grow and where we matter to them and they matter to us. Our top 20 percent client revenues has grown double the company average,” Kishore said.

“We have to compete with all the large Tier 1 players. Our focus in domain really helps there. We have home grown capability in retail as well as through some of our acquisitions. As long as we are aligned to strategic objectives of customers, we’ll continue to grow.”

Kishore pointed out that retail has been soft for the company and may continue to be but the company is trying to focus on speciality retailers instead of only big box retailers to try and grow revenues from the segment.

Zensar’s headcount in the quarter crossed 10,000 mark for the first time at 10,166, up from 9,748 in the sequential quarter. Kishore said the company is going through an extenSive retraining exercise to retrain the entire workforce on new technologies.

“We have trained 100% of our employees 5 times over on digital with several certifications. Right now we are training all of them again on experience, AI and smarter platforms. It is mandatory for all our employees to certify on these platforms,” Kishore said.

Published on August 07, 2019

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like