Zensar Technologies net profit de-grew by 21.68 per cent on Q-o-Q results
Chirag Gothi / 20 Jan 2016
Zensar Technologies reported an almost flat growth in consolidated net profit at Rs 69.52 crore for the three months ended December 31, 2015 compared to the same period last year. On a sequential level, profit de-grew by 21.68 per cent. Total income from operations grew by 5.86 per cent to Rs 762 crore for the reported period as compared to Rs 719.87 crore in the same period of last year and almost flat on Q-o-Q basis.
Zensar Technologies reported an almost flat growth in consolidated net profit at Rs 69.52 crore for the three months ended December 31, 2015 compared to the same period last year. On a sequential level, profit de-grew by 21.68 per cent.
Total income from operations grew by 5.86 per cent to Rs 762 crore for the reported period as compared to Rs 719.87 crore in the same period of last year and almost flat on Q-o-Q basis.
Its consolidated operating profit increased by 8.16 per cent to Rs 114.12 crore for the quarter, but declined by 4.35 per cent on Q-o-Q basis. Operating profit margin for the current period at 14.97 per cent contracted by 75 bps Q-o-Q but expanded 32 bps Y-o-Y.
Revenue break-up based on geographic factors: North America remains the major revenue contributor to the topline of the company, more than 75 per cent of the revenue coming from the same region. Europe contributes around 12 per cent; and Africa contributes around 7 per cent.
If we look at revenue break-up by service offering; the Application Maintenance and Services (AMS) is the major revenue contributor at around 71 per cent of the total revenue. These are services considered to be low realization services. However company is now focusing on high realization service offerings like digital services.
“Our focus on Digital and eCommerce continue to spur growth for Zensar in all territories. The Digital and eCommerce businesses have touched a contribution of 26% to the YTD revenues of the company”, said Dr. Ganesh Natarajan, Vice Chairman and CEO, Zensar Technologies.
For nine months ended December 31, 2015, the company’s consolidated net profit grew by 18.8 per cent to Rs 238.96 crore and its revenue grew by 12.02 per cent to Rs 2,226.65 crore. Operating profit for nine month period grew by 18.8 per cent to Rs 342.77crore along with operating margin, which expanded by 88bps to 15.39 per cent.
The company has also recommended payment of Interim Dividend at the rate of Rs 5/- per Equity Share of Rs10/- each for the FY16. On valuation front, the stock is currently available at 13.4 times of price to earning. The result was declared after market hours. Today stock declined Rs 8.4, or 0.88 per cent, to settle at Rs 942.25. Considering the slowdown in the global economy, the company has posted a decent result.
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