Zensar Technologies’ Q3FY13 Results: Revenues Decline, Profits Grow

Zensar Technologies announced its Q3FY13 numbers post market hours on Monday, Jan 21, 2013. The result was a mixed bag, as the company posted a sequential decline of 2.33% in revenues and at the same time, a 51.38% jump in profits.

The revenue slowdown was majorly due to a slowdown in CISCO, which is Zensar’s largest client. Moreover, there was also a downturn seen in Akibia, an infrastructure management (IM) company that Zensar recently acquired. This led to a sequential decline in IM of 4%. Its products business too saw some sluggishness, declining by 7.46% to Rs 62 crore in Q3FY13.

However, despite a slowdown in the Dec 2012 quarter, Zensar’s order book looks robust. Year-till-date, the company has signed over a dozen multi-million dollar deals with a cumulative value of around USD 120 million, out of which deals worth around USD 20 million have already been closed. The company continues to maintain its focus on large deals and expects this to make the order book substantial.

Overall, although there have been pressures in the near-term primarily due to slowdown on the client front, the management looks optimistic about the future outlook. Looking at the current scenario, it expects a growth of 14%-15% for FY14 in revenues, as well as a higher growth in profits.