PAT of Zensar Technologies rises by 36 per cent

Zensar Technologies is a globally focused software and services company. Zensar provides end-to-end services from IT development to Business Process Outsourcing, from consulting to implementation. The company provides services in the area of Retail and Distribution, Banking, Financial Services and Insurance, Healthcare and Life Sciences, Manufacturing, Energy and Utilities.

Recently, Zensar Technologies announced its First Quarter FY16 result, the consolidated revenue of the company stood at Rs 706 crore compared to Rs 668 crore, rose by 5.67 per cent on quarterly basis. The revenue by geographical segments increased in Africa region from 7 per cent to 8 per cent. The revenue increased in Application Management Services and Products & Licences from 72 per cent to 75 per cent. Industry wise, the revenue in manufacturing, retail & distribution industry increased from 70 per cent to 71 per cent, and other industries like insurance, banking & finance, govt., healthcare & utilities, alliance & others whose revenue remained same in Q1FY16 against Q4FY15.

The total expenses of the company has marginally increased by 5.4 per cent on quarterly basis due to marginal increases in employees cost and other expenses by 6.6 per cent 4.9 per cent respectively, during the quarter depreciation decreased by 4.6 per cent. The EBITDA rose by 6 per cent and EBITDA margin expanded by 6 basis points to 15.49 per cent. The tax expenses rose by 123 per cent in this quarter. The net profit stood at Rs 76 crore against Rs 71.8 crore, increased by 5.96 per cent on quarterly basis.

Dr. Ganesh Natarajan, Vice Chairman and CEO, Zensar Technologies said, “This has been a quarter of robust growth for Zensar on all fronts. The company has been focusing on new client acquisition and strategic deals in Digital and eCommerce, which has resulted in good wins and a substantial order pipeline.”

The year on year performance of the company is good, and the total revenue of the company increased by 15.36 per cent and stood at Rs 705.9 crore as compared to Rs 611.9 crore, due to yearly growth in geographic segment, service segment and industry segment and also company added new projects and clients. The total expenses increased by 12.72 per cent. The EBITDA increased by 30.96 per cent, the EBITDA margin expanded by 184 basis points to 15.49 per cent on yearly basis. The PAT of Zensar Technologies rose by 35.95 per cent and stood at Rs 76 crore in Q1FY16 against Rs 56 crore in Q1FY15.

Nitin Parab, Chief Executive, Enterprise Transformation Services, Zensar Technologies commented, “We are happy to see the market adoption of our digital solutions, which forms a strong foundation for growth in the financial year. We reached a level of 12.6 per cent of our revenues in FY15, and will continue to invest in new products, services and skills in this area.”

Yesterday, after the result announcement Zensar shares closed around 8 per cent higher, today Zensar is trading higher by 5 per cent at Rs 778.