Zensar Q2 net down 16% at Rs 80 crore

RPG Group IT firm Zensar Technologies reported a profit after tax of Rs 79.9 crore for the quarter ended September 30, 2019, down 16.1% year on year.

Revenue for the quarter stood at Rs 1,072.3 crore, up 13.3% over last year.

In dollar terms, profit after tax stood at $11.3 million, while revenues were at $152.3 million.

Digital revenues now comprise 50.1% of its revenue, growing 25.2% year-on-year.

Sandeep Kishore, CEO, Zensar Technologies, said, “Zensar’s year-on-year revenue growth continues to be strong with an increase of 14.1% on constant currency basis. Digital continues to maintain consistent momentum and grew by 25.2% YoY.”

US revenues slowed by 3.3% during the quarter, while Europe and Africa grew at 5.1% and 23.4%, respectively.

Due to the company’s focus on core business operating performances, the core business operating margin has been maintained at 14% despite wage hikes in the quarter. The wage increase in Q2 was negated by improved operational efficiencies. The quarterly revenue performance was impacted by the completion of two client specific programs.

Navneet Khandelwal, Chief Financial Officer, Zensar Technologies said, “We continue to focus on operational effectiveness across all parameters, YoY EBIDTA growth of 17.2% reflects our focus on the same. We would also like to highlight addition of 3 accounts to our USD 5MN+ customers in this quarter, taking total to 23 such clients.”

The employee headcount at the end of the quarter was 10,219 with a net addition of 977 employees during the quarter. Attrition stood at 17%.