Registered Office : Zensar Technologies Limited Zensar Knoewledge Park, Plot No. 4, MIDC Kharadi, Off Nagar Road, Pune 411014, India. Tel: +91 (20) 6607 4000, 27004000 Fax: +91 (20) 6605 7888, CIN: L72200PN1963PLC012621

Date: January 23, 2020

BSE Limited Corporate Service Department, 01st Floor, P. J. Towers, Dalal Street, Mumbai 400 001

The National Stock Exchange of India Ltd. Exchange Plaza, 03rd floor, Plot No. C/1, 'G' block,

Fax: (022) 2272 2039/2272 3121

Fax: (022) 26598237/26598238

Bandra Kurla Complex, Bandra (E),

Scrip ID: ZENSARTECH Scrip Code: 504067

Symbol: ZENSARTECH Series: EQ

Mumbai 400 051

Subject: Outcome of the Board Meeting

This is to inform you that the Board of Directors of the Company at its meeting held today, which commenced at 12.00 noon and concluded at 06:10 PM, inter-alia, unanimously approved / noted and/or took on record the following:

Interim Dividend

1. Declaration of an interim dividend of Re. 1 /- per equity share;
1. Fixation of record date for the aforesaid interim dividend and related matters, as February 7, 2020.

The interim dividend declared on equity shares, shall be paid on or after February 13, 2020.

Financial Results:

Unaudited Standalone & Consolidated Financial Results and Limited Review report thereon, for the quarter and nine months ended December 31, 2019. Copy of the same is enclosed herewith.

Press Release & Analyst Presentation

Press release and analyst presentation on financial results of the Company for the quarter and nine months ended December 31, 2019 are enclosed herewith.

Code of Fair Disclosure, Internal Procedures and Conduct for Regulating, Monitoring and Reporting of Trading by Insiders and Legitimate Purpose Policy ('Code')

Adoption of Revised Code of Fair Disclosure, Internal Procedures and Conduct for Regulating, Monitoring and Reporting of Trading by Insiders and Legitimate Purpose Policy ('Code'), which was amended inter-alia, pursuant to SEBI (Prohibition of Insider Trading) (Third Amendment) Regulations, 2019.

Copy of the same will be accordingly available under investor section on website of the Company viz. https://www.zensar.com/investor/corporategovernance?type=2&field\_annual\_year\_tid=All&field\_annual\_quarter\_tid=All

This is for your information and dissemination purpose.

Encl. As above

Deloitte Haskins & Sells LLP

Chartered Accountants 706, 'B' Wing, 7th Floor ICC Trade Tower Senapati Bapat Road Pune - 411 016 Maharashtra, India

Tel: +91 20 6624 4600 Fax: +91 20 6624 4605

INDEPENDENT AUDITOR'S REVIEW REPORT ON REVIEW OF INTERIM STANDALONE FINANCIAL RESULTS

TO THE BOARD OF DIRECTORS OF ZENSAR TECHNOLOGIES LIMITED

1. We have reviewed the accompanying Statement of Standalone Unaudited Financial Results of ZENSAR TECHNOLOGIES LIMITED ("the Company"), for the quarter and nine months ended December 31, 2019 ("the Statement"), being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.
1. This Statement, which is the responsibility of the Company's Management and approved by the Company's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
1. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity', issued by the Institute of Chartered Accountants of India (ICAI). A review of interim financial information consists of making inquiries, primarily of the Company's personnel responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing specified under section 143(10) of the Companies Act, 2013 and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
1. Based on our review conducted as stated in paragraph 3 above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Requlations, 2015, as amended, including the manner in which it is to be disclosed, or that it contains any material misstatement.

For DELOITTE HASKINS & SELLS LLP

Chartered Accountants (Firm's Registration No. 117366W/W-100018)

Hemant M. Joshi Partner (Memberghip No. 38019)

Place: Pune Date: January 23, 2020

			Quarter Ended		Nine months ended	(Rs. in Lakhs)Year Ended
	Particulars	31-Dec-2019	30-Sep-2019	31-Dec-2018	31-Dec-2019	31-Dac-2018	31-Mar-2019
		Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
1	Revenue from operations	32.914	35,110	32,539	101,731	101,739	137,008
2	Other Income (net)	1,631	2,988	(287)	6,240	4,763	8,499
$\overline{\mathbf{3}}$	Total Income	34,545	38,098	32,252	107,971	106,502	145,507
4	Expenses
	a. Purchase of traded goods	267	266	391	721	1.049	1,209
	b. Employee benefits expense	19,895	21,240	19,645	60,988	58,977	78,949
	c. Subcontracting costs	1,048	1.194	950	3,116	2.641	3,934
	d. Finance costs	661	356	220	1,532	706	918
	e. Depreciation, amortisation and impairment expense	2.155	1,907	1.062	5.958	3,182	4,278
	f. Other expenses	3,932	5.165	5,419	14,736	16,659	22,868
	Total expenses	27,957	30,128	27,687	87,051	83,214	112.156
5	Profit before tax (3-4)	6,588	7,970	4,565	20,920	23,288	33,351
6	Tax expense
	a. Current tax	1.626	1,162	1,283	4,538	6,234	8.169
	b. Deferred tax	100	379	(55)	333	(455)	(618)
$\overline{\mathbf{z}}$	Net Profit for the period (5-6)	4.861	6,429	3,337	16,049	17,509	25,800
8	Other comprehensive Income/(loss), net of income tax
	A. Items that will not be realassified to profit or loss	90	(281)	(353)	(323)	44	111
	B. Items that will be reclassified to profit or loss	(255)	(262)	930	(694)	264	427
	Total other comprehensive income/(loss), net of income tax	(165)	(543)	577	(1,017)	308	538
9	Totel comprehensive income for the period (7+8)	4,696	5,886	3.914	15,032	17.817	26.338
10	Paid-up equity share capital (Face value Rs, 2 each)	4,507	4,505	4.502	4.507	4,502	4.504
11	Other equity excluding Revaluation Reserves as per balancesheet						142,579
	12 Eamings Per Share (EPS) (Face value Rs. 2 each) (notannualised):
	a) Basic	2.16	2.85	1.48	7.13	7.78	11.46
	b) Dlluted	2.12	2.81	1.46	7.01	7.65	11.27

$\hat{\boldsymbol{\kappa}}$

Notes

es :1 These unaudited results have been prepared in accordance with the recognition and massurement principles laid down in the Indian Accounting Standard 34 "Interim Financielየლაროვ" ("Ind AS 34"), prescribed under Sec
2 Where financial results are declared for both consolidated and dandalone entity, segment information may be presented only in the case of consolidated financial Accordingly, segment information mas been provided only in
encionally the sale of the sale of the sale of the sale of the sale of the sale of combiner contracts and enterpretented fields likely under a BusinessTransfer Apprenent. Gain although from such therefore of Rs. 439 lakhs
6 The board of directors is their meeting on January 23, 2020 deslaved an Interdepted of Rs. 1 per equity share.The first of directors is the meeting of January 23, 2020 deslaved and the set of the set of the set of the s

carming per siste wir we quarer and nuc monors ented becember 31, 2019.In respect of lease that were dassified as finance lasses, applying Ind AS 1,7, a amount of Rs. 489 lakiss has been redassified from property, plant a

For and on behalf of the Board

MumbalDale: January 23, 2020

RECHNOLOGY Sandeep Kishore Managing Director & CEODIN:07393680 $\infty$ ES $\supset$ SA am $\sqrt{2}$ 5 $\mathbf{v}$ $\star$ $\overline{\phantom{a}}$

$\epsilon$

Deloitte Haskins & Sells LLP

Chartered Accountants 706, 'B' Wing, 7th Floor ICC Trade Tower Senapati Bapat Road Pune - 411 016 Maharashtra, India

Tel: +91 20 6624 4600 Fax: +91 20 6624 4605

INDEPENDENT AUDITOR'S REVIEW REPORT ON REVIEW OF INTERIM CONSOLIDATED FINANCIAL RESULTS

TO THE BOARD OF DIRECTORS OF ZENSAR TECHNOLOGIES LIMITED

1. We have reviewed the accompanying Statement of Consolidated Unaudited Financial Results of ZENSAR TECHNOLOGIES LIMITED ("the Parent") and its subsidiaries (the Parent and its subsidiaries together referred to as "the Group"), for the quarter and nine months ended December 31, 2019 ("the Statement") being submitted by the Parent pursuant to the requirement of Requlation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.
1. This Statement, which is the responsibility of the Parent's Management and approved by the Parent's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
1. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Institute of Chartered Accountants of India (ICAI). A review of interim financial information consists of making inquiries, primarily of Parent's personnel responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing specified under Section 143(10) of the Companies Act, 2013 and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
1. The Statement includes the results of the entities listed in Note 2 of the Statement.
1. Based on our review conducted and procedures performed as stated in paragraph 3 above. nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, including the manner in which it is to be disclosed, or that it contains any material misstatement.

For DELOITTE HASKINS & SELLS LLP Chartered Accountants (Firm's Registration No. 117366W/W-100018)

Hemant M. Joshi Partner (Membership No. 38019)

Place: Pune Date: January 23, 2020

							(Rs. in Lakhs)
		Quarter Ended			Nine months ended	Year Ended
	Particulars	31-Dec-2019	30-Sep-2019	31-Dec-2018	31-Dec-2019	31-Dec-2018	31-Mar-2019
		Unaudired	Unaudited	Unaudited	Unaudited	Unaudited	Audited
	Revenue from operations
1$\overline{\mathbf{2}}$	Other Income (net)	102,0593,959	107,2281,808	103,555251	316,3897,230	290,8926,768	396,6339,268
3	Total Income	106,018	109,036	103,806	323,619	297,660	405,901
4	Expenses
	a. Purchase of traded goods	5,576	2,318	4,343	12,803	8,208	11,538
	b. Changes in inventories	1,464	1,243	1,577	4,001	4,938	7,278
	c. Employee benefits expense	59,635	61,063	56,611	178,220	158,349	215,258
	d. Subcontracting costs	15,866	15,861	17,476	47,951	47.135	63,302
	e. Finance costs	1,274	1,396	1,089	4,333	2,627	3,729
	f. Depreciation, amortisation and impairment expense	4,119	3,851	2,371	11,764	6,432	8.944
	g. Other expensesTotal expenses	12,557	11,740	12,508	36,870	37,302	51,314
		100,491	97,472	95,975	295,942	264,991	361,363
5	Profit before tax (3-4)	5,527	11,564	7,831	27,677	32,669	44,538
6	Tax expense
	a. Current taxb. Deferred tax	1.665	3,048	2,536	8,150	10,308	14,045
		(256)	246	(356)	(432)	(1, 185)	(1, 372)
$\overline{\phantom{a}}$	Net Profit for the period (5-6)	4,118	8,270	5.651	19,959	23,546	31,865
8	Net Profit/(Loss) attributa ble to:
	- Owners	3,953	7,987	5,528	19,390	23,085	31,359
	- Non-controlling interests	165	283	123	569	461	506
9	Other comprehensive income/(loss), net of income tax
	A. Items that will not be reclassified to profit or lossB. Items that will be reclassified to profit or loss	90	(284)	(353)	(326)	44	(44)
	Total other comprehensive income/(loss), net of income tax	1,9772,067	(432)(716)	(318)(671)	750424	(237)(193)	403359

10	Total comprehensive income for the period (7+9)	6,185	7,554	4.980	20,383	23,353	32,224
11	Total comprehensive income attributable to:
	- Owners	5,905	7,317	4,891	19,724	23,054	31,893
	- Non-controlling interests	280	237	89	659	299	331
12	Paid-up equity share capital (Face value Rs. 2 each)	4,507	4,505	4,502	4,507	4,502	4,504

13	Other equity excluding Revaluation Reserves as per balancesheet						189,732
14	Earnings Per Share (EPS) (Face value Rs. 2 each) (notannualised):
	a) Basic	1.75	3.55	2.46	8.61	10.26	13.93
	b) Diluted	1.73	3.49	2.41	8.47	10.09	13.70

		Quarter Ended			Nine months ended
Particulars	31-Dec-2019	30-Sep-2019	31-Dec-2018	31-Dec-2019	31-Dec-2018	31-Mar-2019
	Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
Segment Revenue
Application Management Services	85,740	91,768	86,091	266,287	245,168	334,692
Infrastructure Management Services	16,319	15,460	17,464	50,102	45,724	61,941
Revenue From Operations	102,059	107.228	103,555	316,389	290.892	396,633
$\overline{2}$Segment Results (Profit / (Loss) before tax and finance cost)
Application Management Services	6.201	14,421	10,891	34,294	34,192	46,602
Infrastructure Management Services	2,820	1,872	1,214	5,957	3,452	3,968
Total Segment Results	9,021	16,293	12105	40,251	37,644	50.570
Less: Finance costs	1,274	1,396	1,089	4,333	2,627	3,729
Less: Unallocable expenditure net of unallocablelincome	2,220	3,333	3,185	8,241	2,348	2,303
Total Profit before Tax	5,527	11,564	7,831	27,677	32,669	44,538

Consolidated Segment wise Revenue & Results for the quarter and Nine months ended December 31, 2019

$\bar{z}$

	Statement of Segment Assets & Liabilities	31-Dec-2019	30-Sep-2019	31-Dec-2018	31-Mar-2019
		Unaudited	Unaudited	Unaudited	Audited
$\mathbf{1}$	Segment AssetsTrade Receivables
	Application Management Services	65,935	64.457	66,375	72,964
	Infrastructure Management Services	14,061	10,546	16,306	14,657
	Total Trade Receivables	79,996	75,003	82,681	87,621
	InventoriesApplication Management ServicesInfrastructure Management ServicesTotal Inventories	9,5249,524	a.9,7169,716	10,58010.680	9,8469,846
	Unbilled RevenueApplication Management ServicesInfrastructure Management ServicesTotal Unbilled Revenue	34,7235,40140,125	53,4025,53658,938	33,8544,71638,570	31,7535,90637,659
	GoodwillApplication Management ServicesInfrastructure Management ServicesTotal Goodwill	42,81819,18262,000	42,10919,04561.154	41,87318,74760,620	41,72818,58260,310
	Unallocable Assets	166,593	138,291	111,137	113,536
	TOTAL ASSETS	358,238	343,102	303,688	308,972
$\overline{2}$	Segment LiabilitiesUnearned Revenue
	Application Management Services	9,182	7.792	5,094	5.678
	Infrastructure Management Services	2,047	2,796	2,602	3,747
	Total Unearned Revenue	11,229	10,588	7.696	9,425
	Unallocable Liabilities	134,517	126,714	108,510	103,616
	Total Llabilities	145746	137,302	116,206	113,041

Notes :

.1 These unaudiled results have been prevared in accordance with the recognition and measurement priorisles laid down in the Indian Accounting Standard 34 "Interim Financial Reporting "Clind AS 34"), prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder as amended from time to time. The above financialresults were reviewed and recommended by the Au
2 The consolidated financial results include the results of Zensar Technologies Limited and its subsidiaries viz., Zensar Technologies Inc., Zensar Technologies (UK) Limited, PSI The Construction and The Construction of the Construction and The Construction and The Construction and The Construction and The Construction and The Construction and The Construction and The Construction and The Construct
3 Other Income (Net) for the quarter and Nine months ended December 31, 2019 includes net foreign exchange gain of Rs. 1,015 lakhs and Rs. 3,816 lakhs respectively.(Corresponding previous period: Other Income( Net) of Rs.
4 During the year ended March 31, 2019, the Parent concluded the sale of two subsidiaries and transfer of customer contracts and employee related liability under a BusinessTransfer Agreement. Gain arising from such transa
5 During the Nine months ended December 31, 2019, the Company issued 19,500 equity shares pursuant to the exercise of stock options by certain employees under the "2002ESOP" and 142,270 equity shares under "2006 ESOP" sto
6 Results of Zensar Technologies Limited on a stand alove basis are hosted on the Company's website www.zensar.com.

		Ouarter Ended		Nine months ended	Year Ended
Particulars	31-Dec-2019	30-Sep-2019	31-Dec-2018	$31 - Dec-2019$	31-Dec-2018	31-Mar-2019
	Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
Revenue from operations	32,914	35,110	32,539	101,731	101,739	137,008
Profit before tax	6,588	7,970	4,565	20,920	23,288	33,351
Net profit for the period	4,861	6,429	3,337	16,049	17,509	25,800

7 The board of directors in their meeting on January 23, 2020 declared an interim dividend of Rs. 1 per equity share.

B Effective April 1, 2019, the Group adopted Ind AS 116 "Laases", applied to all lease contracts existing on April 1, 2019 using the "Modified Retrospective Approach" and has takenthe cumulative adjustment to retained ear adjusted.

awaster.The effect of adoption as on transition date has resulted in recognition of Right of use asset of Rs. 24,026 lakhs and a corresponding lease liability of Rs. 24,630 lakhs. The cumulative effect of applying the sta

eamings per starer or the quatter and wine monuts enow uccessive 3. 2013.In respect of lasses that were alassfied as finance leases, applying Ind AS 17, an amount of Rs. 489 lakhs has been reclassified from property, plan borrowings - non-current to lease liability - non-current.

P Duning the quarter ended December 31, 2019. Company reversed contingent consideration payable on business combinations consummated in previous year amounting to USD3.6 million [Rs..2568 lakhs] based on company's assessm

For and on behalf of the Board

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MumbaiDate: January 23, 2020

ECHNOLO G $\propto$ $\bar{E}S$ |≲ଚ $\star$

Sandeep Kishore Managing Director & CEO DIN:0739368

Zensar reports 1.1% Y-o-Y growth in revenue in Q3FY20 Digital revenues now at 54.1% of total revenues

Pune, India, January 23, 2020: Zensar Technologies, a leading digital solutions and technology services company that specialises in partnering with global organisations on their Digital transformation journey, announced its audited consolidated financial results for its third Quarter ending December 31, 2019 of the fiscal year 2019-2020.

Financial Highlights: The Company reported 1.1% YoY revenue growth at close of Q3FY20 from 141.8M USD to 143.3 M USD. In sequential terms, revenues have declined by 5.9% in dollar terms and consequently PAT for the quarter also declined sequentially and stood at 3.9% of revenue. Digital revenues continue to grow and is now 54.1% of Q3FY20 revenue. The Board of Directors has approved an interim dividend of Re 1 per share.

Sandeep Kishore, Chief Executive Officer and Managing Director, Zensar Technologies said, "A combination of furloughs, project specific customer ramp downs and continued softness in the retail vertical resulted in a soft quarter. However, our digital business across our cloud and infrastructure and applications continued its growth momentum registering a growth of 20.2 % YoY."

Navneet Khandelwal, Chief Financial Officer, Zensar Technologies said, "Our focus on improving operating cashflows continues to show positive results. Rigour on invoicing and collections has ensured an increase in our net cash position by 33.4M USD Q-o-Q and a reduction in the DSO by 9 days Q-o-Q."

Significant Wins Q3FY20:

x Infrastructure mandate for an American manufacturer of lighting solutions
x Digital solutions for a leading Insurance company in South Africa
x Digital transformation mandate for a large US-based Hi-tech global company
x Application and development work for a large US-based Hi-tech global company
x Application and maintenance services for a large South Africa based financial services group company
x Cloud and infrastructure services mandate for a US Hi-tech Mfg. company

Corporate Excellence Snapshot in Q3FY20:

x Zensar mentioned as a challenger in the Avasant Blockchain RadarView™
x Zensar recognized as an Innovator in Avasant' s Hybrid Enterprise Cloud Services RadarView™ 2019
x Zensar featured in Digital Workplace of the Future ISG Provider Lens™ Study 2019
x Zensar mentioned in the Competitive Landscape: Robotic Process Automation Service Providers 2019
x Zensar has been mentioned as disruptor in Avasant Intelligent Automation Services Radarview Report 2019
x Zensar mentioned as Major Contender in Application Transformation Services PEAK Matrix™ Assessment 2020.
x Zensar mentioned as an Aspirant in "Application and Digital Services in Banking –Services PEAK Matrix™ Assessment 2020
x Zensar mentioned as an Aspirant in Blockchain Services PEAK Matrix™ Assessment 2020.
x Zensar mentioned as an Aspirant in Advanced Analytics and Insights PEAK Matrix™ Assessment 2020
x Zensar mentioned as an Aspirant in Cloud Enterprise Resource Planning (ERP) PEAK Matrix™ Assessment 2020
x Zensar mentioned as an Aspirant Talent Readiness for Next-generation IT Services PEAK Matrix™ Assessment 2020

Awards and Recognitions in Q3FY20:

x Zensar receives the ISG Special Award at the ISG Paragon Awards™ Americas
x Zensar participates in the 'Women in the Workplace 2019' report by McKinsey and LeanIn.Org
x Zensar recognized at the SHRM HR Excellence Awards 2019 for Excellence in Leveraging HR Technology and Excellence in HR Analytics

Q3FY20 Revenue and profitability snapshot

	Q3 FY20		Growth
Particulars		INR Cr	Q-o-Q			Y-o-Y
	USD Mn		USD	INR	CC	USD	INR	CC
Revenue	$ 143.3	₹ 1020.6	(5.9%)	(4.8%)	(6.4%)	1.1%	(0.1%)	0.8%
EBITDA	$ 9.8	₹ 69.6	(54.1%)	(53.6%)		(39.8%)	(40.6%)
EBIT	$ 4.0	₹ 28.4	(74.8%)	(74.5%)		(69.2%)	(69.6%)
PAT	$ 5.6	₹ 39.5	(51.0%)	(50.5%)		(31.7%)	(32.6%)

Note: All numbers are as per the Ind-AS reporting standard

About Zensar (www.zensar.com)

Zensar is a leading digital solutions and technology services company that specialises in partnering with global organisations across industries on their Digital Transformation journey. A technology partner of choice, backed by strong track-record of innovation; credible investment in Digital solutions; assertion of commitment to client's success, Zensar's comprehensive range of digital and technology services and solutions enable its customers to achieve new thresholds of business performance. Zensar, with its experience in delivering excellence and superior client satisfaction through myriad technology solutions, is uniquely positioned to help them surpass challenges around running their existing business most efficiently, helping in their legacy transformation, and planning for business expansion and growth through innovative and digital ways.

Follow Zensar via:

Zensar Blog: http://www.zensar.com/blogs Twitter: https://twitter.com/Zensar LinkedIn: https://www.linkedin.com/company/zensar-technologies Facebook: https://www.facebook.com/Zensar Catch our refreshed new website at: www.zensar.com

About RPG Enterprises (www.rpggroup.com)

RPG Enterprises, established in 1979, is one of India's fastest growing business groups with a turnover of Rs 23000 Cr. The group has diverse business interests in the areas of Infrastructure, Tyres, Pharma, IT and Specialty as well as in emerging innovation led technology businesses.

For any queries please feel reach out:

PR Contacts (Global Headquarters - India):
Aradhana Prabhu
Public Relations
Zensar Technologies
+91 9765999749
[email protected]

Safe Harbor

including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital or acquiring companies outside India, and unauthorised use of our intellectual property and general economic conditions affecting our industry. The Company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the Company.

Zensar reports 1.1% Y-o-Y growth in revenue in Q3FY20 Digital revenues now at 54.1% of total revenues

Significant Wins Q3FY20:

x Infrastructure mandate for an American manufacturer of lighting solutions
x Digital solutions for a leading Insurance company in South Africa
x Digital transformation mandate for a large US-based Hi-tech global company
x Application and development work for a large US-based Hi-tech global company
x Application and maintenance services for a large South Africa based financial services group company
x Cloud and infrastructure services mandate for a US Hi-tech Mfg. company

Corporate Excellence Snapshot in Q3FY20:

x Zensar mentioned as a challenger in the Avasant Blockchain RadarView™
x Zensar recognized as an Innovator in Avasant' s Hybrid Enterprise Cloud Services RadarView™ 2019
x Zensar featured in Digital Workplace of the Future ISG Provider Lens™ Study 2019
x Zensar mentioned in the Competitive Landscape: Robotic Process Automation Service Providers 2019
x Zensar has been mentioned as disruptor in Avasant Intelligent Automation Services Radarview Report 2019
x Zensar mentioned as Major Contender in Application Transformation Services PEAK Matrix™ Assessment 2020.
x Zensar mentioned as an Aspirant in "Application and Digital Services in Banking –Services PEAK Matrix™ Assessment 2020
x Zensar mentioned as an Aspirant in Blockchain Services PEAK Matrix™ Assessment 2020.
x Zensar mentioned as an Aspirant in Advanced Analytics and Insights PEAK Matrix™ Assessment 2020
x Zensar mentioned as an Aspirant in Cloud Enterprise Resource Planning (ERP) PEAK Matrix™ Assessment 2020
x Zensar mentioned as an Aspirant Talent Readiness for Next-generation IT Services PEAK Matrix™ Assessment 2020

Awards and Recognitions in Q3FY20:

x Zensar receives the ISG Special Award at the ISG Paragon Awards™ Americas
x Zensar participates in the 'Women in the Workplace 2019' report by McKinsey and LeanIn.Org
x Zensar recognized at the SHRM HR Excellence Awards 2019 for Excellence in Leveraging HR Technology and Excellence in HR Analytics

Q3FY20 Revenue and profitability snapshot

	Q3 FY20		Growth
Particulars			Q-o-Q			Y-o-Y
	USD MnINR Cr		USD	INR	CC	USD	INR	CC
Revenue	$ 143.3	₹ 1020.6	(5.9%)	(4.8%)	(6.4%)	1.1%	(0.1%)	0.8%
EBITDA	$ 9.8	₹ 69.6	(54.1%)	(53.6%)		(39.8%)	(40.6%)
EBIT	$ 4.0	₹ 28.4	(74.8%)	(74.5%)		(69.2%)	(69.6%)
PAT	$ 5.6	₹ 39.5	(51.0%)	(50.5%)		(31.7%)	(32.6%)

Note: All numbers are as per the Ind-AS reporting standard

Q3FY20 Revenue Growth in Constant Currency

		Q3 FY20
Particulars	Segments	QoQ
Consolidated	For the Company	(6.4%)
	US	(5.9%)
Geography	Europe	(7.1%)
	Africa	(9.0%)
	Digital and Application Services, DAS	(8.1%)
	Digital Services	0.5%
	Core Application Services	(17.3%)
	Cloud and Infrastructure Services, CIS	3.6%
Services	Cloud, Digital Led next gen CIS	4.7%
	Core Infrastructure Services	18.3%
	Third Party Maintenance	(13.5%)
	Total Digital Services	1.0%
	Hitech and Manufacturing	(2.9%)
	Hitech	(2.6%)
	Mfg.	(3.9%)
	Retail and Consumer Services	(21.5%)
Industry	Financial Services	(4.7%)
	Insurance	(8.8%)
	Banking	6.3%
	Emerging	0.0%

Performance Highlights

Income Statement (USD Mn)

Income Statement (USD Mn)	Q3 FY 19	FY19	Q2 FY 20	Q3 FY 20
Operating revenue	141.8	557.2	152.3	143.3
Sequential Growth	5.1%		-0.7%	-5.9%
Year-Over-Year Growth	19.9%	19.5%	12.8%	1.1%
Cost of revenue	102.8	394.6	107.9	109.5
Gross profit	39.0	162.6	44.3	33.8
Gross profit % of revenue	27.5%	29.2%	29.1%	23.6%
Sequential Growth	-1.6%		-1.7%	-23.7%
Year-Over-Year Growth	6.6%	18.6%	11.9%	-13.3%
Sales and marketing expenses	9.7	37.7	9.8	9.5
General and administration expenses	13.3	54.5	13.2	14.6
Operating expenses	23.0	92.2	23.0	24.1
% of revenue	16.3%	16.5%	15.1%	16.8%
Other operating income	0.3	2.3	-	-
Earnings before interest, tax, depreciation andamortization (EBITDA)	16.2	72.7	21.3	9.8
EBITDA % of revenue	11.5%	13.0%	14.0%	6.8%
Sequential Growth	-10.6%		-2.3%	-54.1%
Year-Over-Year Growth	-3.1%	30.8%	17.2%	-39.8%
Depreciation and amortisation	3.3	12.8	5.5	5.8
Earnings before interest and tax (EBIT)	13.0	59.9	15.8	4.0
EBIT % of revenue	9.1%	10.8%	10.4%	2.8%
Sequential Growth	-13.5%		-3.1%	-74.8%
Year-Over-Year Growth	-9.3%	31.8%	5.7%	-69.2%
Interest	1.5	5.3	2.0	1.8
Exchange Gain/(Loss)	-2.3	4.3	2.4	1.4
Other income	2.4	7.1	0.1	4.1
Profit before tax	11.5	66.0	16.4	7.8
% of revenue	8.1%	11.9%	10.8%	5.4%
Sequential Growth	-40.1%		2.3%	-52.7%
Year-Over-Year Growth	-18.5%	26.3%	-14.5%	-32.6%
Provision for taxation	3.2	18.8	4.7	2.0
Profit after tax (before minority interest)	8.3	47.2	11.7	5.8
% of revenue	5.9%	8.5%	7.7%	4.0%
Minority interest	0.2	0.7	0.4	0.2
Profit after tax	8.1	46.5	11.3	5.6
Profit after tax % of revenue	5.7%	8.3%	7.4%	3.9%
Sequential Growth	-40.0%		0.2%	-51.0%
Year-Over-Year Growth	-12.4%	30.0%	-16.4%	-31.7%

Income Statement (INR Mn)

Income Statement (INR Mn)	Q3 FY 19	FY 19	Q2 FY20	Q3 FY20
Operating revenue	10,220	38,988	10,723	10,206
Sequential Growth	8.0%		0.6%	-4.8%
Year-Over-Year Growth	33.5%	29.7%	13.3%	-0.1%
Cost of revenue	7,409	27,626	7,600	7,796
Gross profit	2,812	11,362	3,123	2,410
Gross profit % of revenue	27.5%	29.1%	29.1%	23.6%
Sequential Growth	1.2%		-0.5%	-22.8%
Year-Over-Year Growth	18.7%	28.6%	12.4%	-14.3%

Sales and marketing expenses	701	2,639	690	675
General and administration expenses	960	3,806	933	1,039
Operating expenses	1,661	6,445	1,623	1,714
% of revenue	16.3%	16.5%	15.1%	16.8%
Other operating income	20	162	-	-

Earnings before interest, tax, depreciation andamortization (EBITDA)	1,171	5,079	1,500	696
EBITDA % of revenue	11.5%	13.0%	14.0%	6.8%
Sequential Growth	-8.1%		-1.0%	-53.6%
Year-Over-Year Growth	11.7%	41.8%	17.7%	-40.6%
Depreciation and amortisation	237	894	385	412
Earnings before interest and tax (EBIT)	934	4,184	1,115	284
EBIT % of revenue	9.1%	10.7%	10.4%	2.8%
Sequential Growth	-11.1%		-1.8%	-74.5%
Year-Over-Year Growth	5.1%	42.7%	6.2%	-69.6%

Interest	109	373	139	127
Exchange Gain/(Loss)	-169	291	172	102
Other income	174	502	9	295
Profit before tax	830	4,604	1,156	553
% of revenue	8.1%	11.8%	10.8%	5.4%
Sequential Growth	-38.4%		3.7%	-52.2%
Year-Over-Year Growth	-5.5%	36.6%	-14.1%	-33.4%
Provision for taxation	231	1,310	329	141
Profit after tax (before minority interest)	599	3,294	827	412
% of revenue	5.9%	8.4%	7.7%	4.0%
Minority interest	12	51	28	16
Profit after tax	586	3,243	799	395
Profit after tax % of revenue	5.7%	8.3%	7.4%	3.9%
Sequential Growth	-38.4%		1.5%	-50.5%
Year-Over-Year Growth	3.9%	40.6%	-16.1%	-32.6%

Other Metrics	Q3 FY 19	FY 19	Q2 FY 20	Q3 FY 20

Revenue By Service Offering
Digital & Application Services (DAS)	82.8%	84.4%	85.6%	84.0%
Digital Services	40.2%	40.3%	44.2%	47.5%
Core Application Services	42.5%	44.1%	41.3%	36.5%
Cloud and Infrastructure Services (CIS)	17.2%	15.6%	14.4%	16.0%
Cloud, Digital Led next gen CIS	5.3%	5.1%	5.9%	6.6%
Core Infrastructure Services	7.4%	5.6%	4.4%	5.6%
Third Party Maintenance	4.6%	4.9%	4.1%	3.8%
Total	100%	100%	100%	100%
Total Digital Services	45.5%	45.4%	50.1%	54.1%


Revenue By Industry
Manufacturing	50.8%	50.9%	52.7%	54.5%
Hi-Tech	38.4%	38.6%	39.7%	41.1%
Mfg	12.4%	12.3%	13.0%	13.4%
Retail and Consumer Services	19.9%	21.3%	16.2%	13.7%
Financial Services	25.5%	24.6%	28.4%	28.9%
Insurance	19.0%	18.8%	20.8%	20.3%
Banking	6.5%	5.8%	7.5%	8.6%
Emerging	3.8%	3.2%	2.7%	2.8%
Total	100%	100%	100%	100%

Revenue By Geographical Segment
US	77.0%	76.5%	74.0%	74.2%
Europe	14.5%	14.6%	15.3%	15.6%
Africa	8.4%	8.9%	10.6%	10.2%
Total	100%	100%	100%	100%

Revenue By Project Type
Fixed Price	53.5%	53.3%	57.4%	57.5%
Time & Materials	46.5%	46.7%	42.6%	42.5%
Total	100%	100%	100%	100%

Other Metrics	Q3 FY 19	FY 19	Q2 FY 20	Q3 FY 20

Constant Currency
Operating revenue (Constant Currency mn)	142.4	561.1	153.7	142.5
Sequential Growth	5.5%	20.3%	0.3%	$-6.4%$
Year-Over-Year Growth	20.2%	20.3%	13.4%	0.8%

Constant Currency Growth By Service Offering (QoQ %)
Digital & Application Services (DAS)	2.8%	22.4%	3.6%	$-8.1%$
Digital Services	5.9%	35.2%	7.0%	0.5%
Core Application Services	0.2%	12.7%	0.1%	$-17.3%$
Cloud and Infrastructure Services (CIS)	20.4%	10.2%	$-15.8%$	3.6%
Cloud, Digital Led next gen CIS	10.1%	77.8%	$-17.0%$	4.7%
Core Infrastructure Services	69.3%	-6.9%	$-27.8%$	18.3%
Third Party Maintenance	$-11.5%$	$-7.3%$	5.2%	$-13.5%$

Total Digital Services	6.3%	38.9%	3.5%	1.0%

Constant Currency Growth By Industry (QoQ %)
Manufacturing	2.6%	19.3%	0.6%	$-2.9%$
Hi Tech	2.0%	26.3%	1.1%	$-2.6%$
Mfa	4.8%	1.5%	$-0.9%$	$-3.9%$
Retail and Consumer Services	1.4%	$-2.3%$	$-9.2%$	$-21.5%$
Financial Services	10.4%	38.7%	16.0%	$-4.7%$
Insurance	6.5%	47.9%	17.1%	$-8.8%$
Banking	23.2%	15.5%	12.9%	6.3%
Emerging	44.4%	240.0%	$-47.9%$	0.0%

Constant Currency Growth By Geography (QoQ %)
US	6.5%	21.5%	$-3.3%$	$-5.9%$
Europe	5.7%	22.4%	5.1%	$-7.1%$
Africa	$-3.6%$	9.5%	23.4%	$-9.0%$

Other Metrics	Q3 FY 19	FY 19	Q2 FY 20	Q3 FY 20
Client Data
Number of million dollar Clients (LTM Revenue)
1 Million dollar +	96	90	93	92
5 Million dollar +	20	19	23	24
10 Million dollar +	7	9	9	10
20 Million dollar +	$\overline{2}$	$\overline{2}$	$\overline{2}$	$\overline{2}$

Revenue from top clients
Revenue-top 5 clients	38.3%	36.5%	37.6%	39.6%
Revenue-top 10 clients	48.8%	45.6%	48.0%	49.3%
Revenue-top 20 clients	59.7%	56.3%	62.6%	63.6%

Repeat business %	87.7%	83.3%	86.3%	84.2%

Number of active clients	279	285	309	308

Onsite:OffshoreRevenue mix
Onsite	67.4%	66.5%	66.7%	67.6%
Offshore	32.6%	33.5%	33.3%	32.4%
Total	100%	100%	100%	100%

Utilization
Utilization (excluding Trainees)	81.7%	83.4%	84.1%	81.0%

Employee data
Headcount
Technical - Onsite	2,346	2,412	2,537	2,368
Technical - Offshore	5,922	6,188	6,353	6,474
Technical - BPO / Others	283	275	205	197
Marketing	76	76	85	90
Support (including trainees)	829	797	1,039	822
Total	9,456	9,748	10,219	9,951

Gross employees added during the period	1,045	3,689	977	608

% of women employees	27.9%	28.5%	30.6%	30.6%

Attrition
Attrition	16.5%	16.3%	17.0%	16.0%

Other Metrics	Q3 FY 19	FY 19	Q2 FY 20	Q3 FY 20
Exchange Rates

Rupee Dollar Rate
Period Closing Rate	69.8	69.2	70.9	71.4
Period Average Rate	72.1	69.9	70.4	71.2

Rupee Euro Rate
Period Closing Rate	80.0	77.7	77.3	80.1
Period Average Rate	82.2	80.9	78.3	78.7

Rupee GBP Rate
Period Closing Rate	89.1	90.5	87.3	94.2
Period Average Rate	92.7	91.8	86.9	91.6

Rupee ZAR RatePeriod Closing Rate	4.9	4.8	4.7	5.1
Period Average Rate	5.0	5.1	4.8	4.8

Revenue By Currency
Dollar	73.6%	73.8%	68.8%	68.7%
Euro	0.8%	5.3%	1.2%	1.7%
GBP	16.1%	13.0%	17.0%	16.7%
ZAR	8.0%	7.1%	10.3%	9.8%
Others	1.5%	0.9%	2.7%	3.2%
Total	100.0%	100.0%	100.0%	100.0%
Effective Tax Rate	27.8%	28.5%	28.5%	25.5%

Accounts receivables (in days)
Billed	69	69	57	57
Unbilled	36	33	45	36
Total	105	102	102	93

Summary of Cash and Cash Equivalents
Cash and Cash Equivalents (USD mn)
Cash on hand	0.0	0.0	0.0	0.0
Balances with Banks:
In current accounts	46.0	42.6	43.0	67.0
Deposit with original maturity of less than three months	2.2	4.2	4.4	5.0
Other Bank Balances:
Unpaid dividend accounts	0.3	0.3	0.3	0.3

Total	48.5	47.1	47.8	72.4
	19.1	13.3	12.8	19.6
Investment in Mutual Funds

Other Metrics	Q3 FY 19	FY 19	Q2 FY 20	Q3 FY 20
Summary of Debt
Debt (USD mn)
Short-term debt	30.5	23.0	25.6	23.5
Long-term debt	20.0	20.0	21.6	21.8
Total	50.5	43.0	47.2	45.3

Outstanding Hedges
USD
Value	74.8	115.2	126.0	133.5
Avg. Rate/ INR	72.2	72.0	71.8	72.5

GBP
Value	14.3	15.8	19.0	14.6
Avg. Rate/ INR	94.6	94.2	89.6	92.2

ZAR	88.3	100.8	272.2	351.9
Value	5.0	5.1	4.8	4.9
Avg. Rate/ INR

Summary of CapexCapex (USD Mn)	1.4	6.9	1.5	2.2

Earning Per Share (INR/share)
Basic	2.5	13.9	3.6	1.8
Diluted	2.4	13.7	3.5	1.7

Shareholding
Public Shareholding	51.2%	51.1%	51.1%	51.0%
Promoter Shareholding	48.9%	48.9%	48.9%	49.0%
Total	100%	100%	100%	100%

About Zensar (www.zensar.com)

Follow Zensar via:

About RPG Enterprises (www.rpggroup.com)

For any queries please feel reach out:

PR Contacts (Global Headquarters - India): Aradhana Prabhu Public Relations Zensar Technologies +91 9765999749 [email protected]

Safe Harbor

Certain statements in this release concerning our future growth prospects are forward-looking statements which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forwardlooking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital or acquiring companies outside India, and unauthorised use of our intellectual property and general economic conditions affecting our industry. The Company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the Company.

Zensar Technologies

Analyst Presentation, Q3 FY20

Quarter Ending Dec 31, 2019

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This presentation may include statements which may constitute forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, business development, market position, expenditures, and financial results, are forward looking statements. Forward looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The actual results, performance or achievements, could thus differ materially from those projected in any such forward-looking statements.

The information contained in these materials has not been independently verified. None of the Company, its Directors, Promoter or affiliates, nor any of its or their respective employees, advisers or representatives or any other person accepts any responsibility or liability whatsoever, whether arising in tort, contract or otherwise, for any errors, omissions or inaccuracies in such information or opinions or for any loss, cost or damage suffered or incurred howsoever arising, directly or indirectly, from any use of this document or its contents or otherwise in connection with this document, and makes no representation or warranty, express or implied, for the contents of this document including its accuracy, fairness, completeness or verification or for any other statement made or purported to be made by any of them, or on behalf of them, and nothing in this document or at this presentation shall be relied upon as a promise or representation in this respect, whether as to the past or the future. The information and opinions contained in this presentation are current, and if not stated otherwise, as of the date of this presentation. The Company undertake no obligation to update or revise any information or the opinions expressed in this presentation as a result of new information, future events or otherwise. Any opinions or information expressed in this presentation are subject to change without notice. This presentation does not constitute or form part of any offer or invitation or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of Zensar Technologies Limited (the "Company"), nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment therefore. Any person/ party intending to provide finance / invest in the shares/businesses of the Company shall do so after seeking their own professional advice and after carrying out their own due diligence procedure to ensure that they are making an informed decision. This presentation is strictly confidential and may not be copied or disseminated, in whole or in part, and in any manner or for any purpose. No person is authorized to give any information or to make any representation not contained in or inconsistent with this presentation and if given or made, such information or representation must not be relied upon as having been authorized by any person. Failure to comply with this restriction may constitute a violation of the applicable securities laws. The distribution of this document in certain jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about and observe any such restrictions. By participating in this presentation or by accepting any copy of the slides presented, you agree to be bound by the foregoing limitations.

Company Overview

Zensar Technologies records $143.3Mn in Q3FY20 ($597.6 Mn LTM)

Part of $3 B RPG Group

•

Portfolio Company of the $40 B APAX Group
•Among 5 global tech companies to be listed
on a major global stock exchange (BSE) for
54.1% Digital Revenue, (20.2% YoY Growth)

•

55+ years

Zensar Business Update

		Q3 FY20			Gro	wth
Particulars	MnDUS	R CrNI		QQ-o-			Y-o-Y
			DUS	RNI	CC	DUS	RNI	CC
Revenue	$ 143.3	₹ 1020.6	%)(5.9	%)(4.8	%)(6.4	%1.1	%)(0.1	%0.8
AEBITD	$ 9.8	₹ 69.6	%)(54.1	%)(53.6		%)(39.8	%)(40.6
EBIT	$ 4.0	₹ 28.4	%)(74.8	%)(74.5		%)(69.2	%)(69.6
PAT	$ 5.6	₹ 39.5	%)(51.0	%)(50.5		%)(31.7	%)(32.6
	I	NR/Share		QQ-o-			Y-o-Y
Diluted)EPS (		1.7		%)(50.9			%)(28.3

Q3 FY20 Revenue Walk

Q3 FY20 Margin Walk

1. Seasonal impact of higher pass through product sales in Q3FY20

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