Zensar Technologies Ltd. - Interim / Quarterly Report 2021

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Registered Office : Zensar Technologies Limited Zensar Knowledge 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: July 26, 2021

BSE Limited

Corporate Service Department, 01[st] Floor, P. J. Towers, Dalal Street, Mumbai 400 001 Fax: (022) 2272 2039/2272 3121

The National Stock Exchange of India Ltd.

Exchange Plaza, 03[rd] floor, Plot No. C/1, ‘G’ block, Bandra Kurla Complex, Bandra (E), Mumbai 400 051

Fax: (022) 26598237/26598238

Scrip ID: ZENSARTECH Scrip Code: 504067

Symbol: ZENSARTECH Series: EQ

Subject: Outcome of the Board Meeting held on July 26, 2021

This is to inform you that the Board of Directors of the Company at its meeting held today, which commenced at 4:30 P.M. (IST) and concluded at 8:40 P.M. (IST), inter-alia, unanimously approved/consented/took on record the following:

Unaudited Standalone and Consolidated Financial Results of the Company for the quarter ended June 30, 2021, along with Limited Review report thereon. Copy of Financial Results along with Press release and Analyst presentation, is enclosed herewith.

This is for your information and dissemination purpose.

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Encl. As above

www.zensar.com

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

TO THE BOARD OF DIRECTORS OF ZENSAR TECHNOLOGIES LIMITED

We have reviewed the accompanying Statement of Standalone Unaudited Financial Results of Zensar Technologies Limited (“the Company”), for the quarter ended June 30, 2021 (“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.
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.
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.
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

Regd. Office: One International Center, Tower 3, 27th-32nd Floor, Senapati Bapat Marg, Elphinstone Road (West), Mumbai-400 013, Maharashtra, India. (LLP Identification No. AAB-8737)

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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)

SAIRABEE Digitally signed by SAIRABEE NAINAR NAINAR RAWTHER Date: 2021.07.26 RAWTHER 18:23:43 +05'30'

Saira Nainar

(Partner)

(Membership No. 040081) (UDIN: 21040081AAAADG1269)

Place: Mumbai Date: July 26, 2021

Zensar Technologies Limited

Registered Office : Zensar Knowledge Park, Kharadi, Plot # 4 , MIDC, Off Nagar Road, Pune - 411014, India. CIN: L72200PN1963PLC012621 Statement of Unaudited Standalone Results for the Quarter ended 30 June 2021

Zensar Technologies Limited Registered Office : Zensar Knowledge Park, Kharadi, Plot # 4 , MIDC, Off Nagar Road, Pune - 411014, India. CIN: L72200PN1963PLC012621 Statement of Unaudited Standalone Results for the Quarter ended 30 June 2021	Zensar Technologies Limited Registered Office : Zensar Knowledge Park, Kharadi, Plot # 4 , MIDC, Off Nagar Road, Pune - 411014, India. CIN: L72200PN1963PLC012621 Statement of Unaudited Standalone Results for the Quarter ended 30 June 2021	Zensar Technologies Limited Registered Office : Zensar Knowledge Park, Kharadi, Plot # 4 , MIDC, Off Nagar Road, Pune - 411014, India. CIN: L72200PN1963PLC012621 Statement of Unaudited Standalone Results for the Quarter ended 30 June 2021	Zensar Technologies Limited Registered Office : Zensar Knowledge Park, Kharadi, Plot # 4 , MIDC, Off Nagar Road, Pune - 411014, India. CIN: L72200PN1963PLC012621 Statement of Unaudited Standalone Results for the Quarter ended 30 June 2021	Zensar Technologies Limited Registered Office : Zensar Knowledge Park, Kharadi, Plot # 4 , MIDC, Off Nagar Road, Pune - 411014, India. CIN: L72200PN1963PLC012621 Statement of Unaudited Standalone Results for the Quarter ended 30 June 2021	Zensar Technologies Limited Registered Office : Zensar Knowledge Park, Kharadi, Plot # 4 , MIDC, Off Nagar Road, Pune - 411014, India. CIN: L72200PN1963PLC012621 Statement of Unaudited Standalone Results for the Quarter ended 30 June 2021
		Amount in INR Mn.
		Quarter Ended			Year ended
Particulars		30-Jun-2021	31-Mar-2021	30-Jun-2020	31-Mar-2021
		Unaudited	Unaudited	Unaudited	Audited
1 2 3 4 5 6 7 8 9 10 11 12	Revenue from operations Other income (net) a. Current tax b. Deferred tax Total Income e. Depreciation, amortisation and impairment expense f. Other expenses Total expenses Expenses Tax expense a. Purchase of traded goods b. Employee benefits expense c. Subcontracting costs a) Basic b) Diluted Net Profit for the period (5-6) Total other comprehensive income/(loss), net of income tax Total comprehensive income for the period (7+8) Other comprehensive income/(loss), net of income tax A. Items that will not be reclassified to profit or loss B. Items that will be reclassified to profit or loss Profit before tax (3-4) d. Finance costs Paid-up equity share capital (Face value INR. 2 each) Other equity excluding Revaluation Reserves as per balance sheet Earnings Per Share (Face value INR. 2 each) (not annualised):	3,702 199	3,479 354	3,284 199	13,618 739
		3,901 0 2,230 72 52 219 342 2,915 986 191 35 760 3 (1) 2 762 451 3.37 3.34	3,833 1 2,010 60 51 231 502 2,855 978 155 13 810 50 33 83 893 451 3.59 3.56	3,483 5 1,900 109 61 231 285 2,591 892 231 8 653 29 19 48 701 451 2.90 2.86	14,357 71 7,768 247 218 894 1,427 10,625 3,732 825 11 2,896 113 31 144 3,040 451 17,906 12.85 12.73

Notes :

1 These unaudited results have been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard 34 “Interim Financial Reporting ”(“IndAS 34”), prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued there under as amended from time to time. The above financial results were reviewed and recommended by the Audit Committee and taken on record by the Board of Directors at their meeting held on 26 July 2021.
2 Where financial results are declared for both consolidated and standalone entity, segment information may be presented only in the case of consolidated financial results. Accordingly, segment information has been provided only in the consolidated financial results.
3 Events after the reporting period
On 15 May 2021, the Company and through its wholly owned subsidiary, Zensar Technologies Inc. entered into Share Purchase Agreement to acquire 100% equity in M3bi India Private Limited and M3bi LLC, a USA based company respectively for a purchase consideration not exceeding INR 178 Mn and USD 21.6 Mn payable upfront along with a performance based deferred payments not exceeding USD 9 Mn over next 36 months respectively (deferred payment applicable to acquisition of M3bi LLC only).
The acquisitions have been consummated on 8 July and 14 July 2021 and effective the said dates, M3Bi India Private Limited and M3Bi LLC became 100% subsidiaries of Zensar Technologies Limited and Zensar Technologies Inc respectively.
4 The term of the erstwhile Managing Director and CEO of the Company ended on 11 January 2021, however his employment at Zensar Technologies Inc. US (100% subsidiary of Zensar Technologies Limited) was extended till 12 February 2021 to facilitate a smooth transition. The Company, post obtaining the necessary approvals (including shareholder’s approval), had paid and accounted for the one time additional payment of USD 2.40 Mn to the erstwhile Managing Director and CEO during the quarter and year ended 31 March 2021.
5 The Board of Directors in their meeting held on 29 April 2021 have recommended a final dividend of INR 2.40 per equity share, subject to the approval of shareholders.
6 The Company, on 19 October 2020, through its 100% subsidiary Zensar Technologies Inc, signed an agreement (subject to certain closing conditions which included approval of shareholders) for sale of Third Party Maintenance (‘TPM’) business housed in its subsidiaries, PSI Holding Group Inc, Zensar Technologies IM Inc and Zensar Technologies IM B.V. (collectively referred to as "PSI Group” or “disposal group”) for a consideration of USD 10 Mn receivable upfront (subject to working capital adjustment) and USD 5 Mn performance based deferred earnouts. Closing conditions were completed during the quarter ended 31 December 2020 and as PSI Group are step down subsidiaries of the company, the necessary accounting treatment is reflected in the Consolidated results of the Zensar Group. Refer Note 7 of the Consolidated results of the Zensar Group.
7 The Board of Directors of Zensar Technologies Limited at its meeting held on 29 October 2020 approved the scheme of amalgamation (the “Scheme”) which provides for the amalgamation of Cynosure Interface Services Private Limited (Cynosure) (a wholly owned subsidiary of the Company) with the Company under sections 230 to 232 and other applicable provisions of the Companies Act, 2013. The Appointed date of the Scheme is 1 April 2021. All the equity shares held by the company in Cynosure shall stand cancelled and extinguished as on the Appointed Date. Accordingly, there will be no issue and allotment of equity shares to the shareholders of the Cynosure upon the Scheme being effective.
Upon the Scheme becoming effective, with effect from the Appointed Date, Company shall account for the amalgamation of Cynosure in its books of account in accordance with the ‘Pooling of Interest Method’ laid down by Appendix C of Indian Accounting Standard 103 'Business Combinations' ('Ind AS 103’) specified under Section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules, 2015, and any amendments issued thereunder and in accordance with generally accepted accounting principles. Further, on the Scheme becoming effective, the financial statements of the Company (including comparative period presented in the financial results/statements of the Company) shall be restated for the accounting impact of amalgamation as if the amalgamation had occurred from the beginning of the said comparative period. As the amalgamation has not consummated yet, the scheme has not been given effect to in these financial results.
8 The Company continues to actively manage its business during COVID-19 pandemic and has not yet experienced significant changes on the business impact than estimated earlier. In assessing the assumptions relating to the possible future uncertainties in the global economic conditions because of this pandemic, nothing has come to the attention of the Company through internal and external sources, which warrants a reassessment of carrying amounts of financial and non-financial assets on the expected future performance of the Company.

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For and on behalf of the Board

Ajay Singh Bhutoria CEO and Managing Director DIN:09013862

Mumbai Date: 26 July 2021

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

TO THE BOARD OF DIRECTORS OF ZENSAR TECHNOLOGIES LIMITED

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 ended June 30, 2021 (“the Statement”) being submitted by the Parent pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.
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.
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.
The Statement includes the results of the entities listed in Annexure to this report.

Regd. Office: One International Center, Tower 3, 27th-32nd Floor, Senapati Bapat Marg, Elphinstone Road (West), Mumbai-400 013, Maharashtra, India. (LLP Identification No. AAB-8737)

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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)

SAIRABEE Digitally signed by SAIRABEE NAINAR NAINAR RAWTHER Date: 2021.07.26 RAWTHER 18:24:50 +05'30'

Saira Nainar

Partner

(Membership No. 040081)

(UDIN: 21040081AAAADH3006)

Place: Mumbai Date: July 26, 2021

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Annexure to Auditor's Review Report:

List of Entities:

Zensar Technologies Inc.
Zensar Technologies (UK) Limited
Zensar (Africa) Holdings Pty Limited
Zensar (South Africa) Pty Limited
Professional Access Limited (Merged with Zensar Technologies Inc. w.e.f April 01, 2021)
Zensar Technologies (Singapore) Pte. Limited
Foolproof Limited
Foolproof (SG) Pte Limited
Keystone Logic Inc. (Merged with Zensar Technologies Inc. w.e.f April 01, 2021)
Cynosure Inc. (Merged with Zensar Technologies Inc. w.e.f April 01, 2021)
Cynosure Interface Services Private Limited
Keystone Logic Mexico, S. DE R.L. DE C.V
Keystone Technologies Mexico, S. DE R.L. DE C.V
Indigo Slate Inc. (Merged with Zensar Technologies Inc. w.e.f April 01, 2021)
Zensar Technologies GmbH
Zensar Technologies (Canada) Inc.
Zensar Information Technologies B.V.

Zensar Technologies Limited Registered Office : Zensar Knowledge Park, Kharadi, Plot # 4 , MIDC, Off Nagar Road, Pune - 411014, India. CIN: L72200PN1963PLC012621 Statement of Unaudited Consolidated Results for the Quarter ended 30 June 2021 Amount in INR Mn.	Zensar Technologies Limited Registered Office : Zensar Knowledge Park, Kharadi, Plot # 4 , MIDC, Off Nagar Road, Pune - 411014, India. CIN: L72200PN1963PLC012621 Statement of Unaudited Consolidated Results for the Quarter ended 30 June 2021 Amount in INR Mn.	Zensar Technologies Limited Registered Office : Zensar Knowledge Park, Kharadi, Plot # 4 , MIDC, Off Nagar Road, Pune - 411014, India. CIN: L72200PN1963PLC012621 Statement of Unaudited Consolidated Results for the Quarter ended 30 June 2021 Amount in INR Mn.	Zensar Technologies Limited Registered Office : Zensar Knowledge Park, Kharadi, Plot # 4 , MIDC, Off Nagar Road, Pune - 411014, India. CIN: L72200PN1963PLC012621 Statement of Unaudited Consolidated Results for the Quarter ended 30 June 2021 Amount in INR Mn.	Zensar Technologies Limited Registered Office : Zensar Knowledge Park, Kharadi, Plot # 4 , MIDC, Off Nagar Road, Pune - 411014, India. CIN: L72200PN1963PLC012621 Statement of Unaudited Consolidated Results for the Quarter ended 30 June 2021 Amount in INR Mn.	Zensar Technologies Limited Registered Office : Zensar Knowledge Park, Kharadi, Plot # 4 , MIDC, Off Nagar Road, Pune - 411014, India. CIN: L72200PN1963PLC012621 Statement of Unaudited Consolidated Results for the Quarter ended 30 June 2021 Amount in INR Mn.
Particulars		Quarter Ended			Year Ended
		30-Jun-2021	31-Mar-2021	30-Jun-2020	31-Mar-2021
		Unaudited	Unaudited	Unaudited	Audited
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16	Revenue from operations Other income (net) a. Current tax b. Deferred tax a) Basic - Owners B. Items that will be reclassified to profit or loss Total comprehensive income for the period (9+11) - Non-controlling interests b) Diluted Total comprehensive income attributable to: - Owners A. Items that will not be reclassified to profit or loss Before exceptional item After exceptional item a) Basic Paid-up equity share capital (Face value INR 2 each) Total other comprehensive income/(loss), net of income tax - Non-controlling interests b) Diluted Other equity excluding Revaluation Reserves as per balance sheet Tax expense Net Profit/(Loss) for the period (7-8) Exceptional Item (refer note 7) Total expenses g. Other expenses Profit before exceptional item and tax Profit before tax (5-6) Earnings Per Share (Face value INR. 2 each) (not annualised): Total Income Other comprehensive income/(loss), net of income tax Expenses a. Purchase of traded goods e. Finance costs b. Consumption and changes in inventories Net Profit/(Loss) attributable to: c. Employee benefits expense d. Subcontracting costs f. Depreciation, amortisation and impairment expense	9,368 184	8,763 66	9,912 180	37,814 254
		9,552 348 - 5,495 1,156 89 426 643 8,157 1,395 - 1,395 336 33 1,026 1,010 16 3 142 145 1,171 1,146 25 451 4.48 4.44 4.48 4.44	8,829 204 - 4,907 1,139 122 445 791 7,608 1,221 (6) 1,215 (46) 355 906 883 23 25 119 144 1,050 1,029 21 451 3.94 3.91 3.92 3.88	10,092 349 111 5,726 1,549 152 444 747 9,078 1,014 - 1,014 326 (61) 749 733 16 28 (5) 23 772 752 20 451 3.25 3.21 3.25 3.21	38,068 1,134 270 21,526 5,233 535 1,747 2,803 33,248 4,820 (491) 4,329 1,069 190 3,070 3,000 70 88 (124) (36) 3,034 2,940 94 451 22,972 15.49 15.34 13.31 13.18

Segmental reporting for theQuarter ended 30 June 2021
Particulars	Quarter Ended			Year Ended
	30-Jun-2021	31-Mar-2021	30-Jun-2020	31-Mar-2021
	Unaudited	Unaudited	Unaudited	Audited
Digital Foundation Services Revenue From Operations Segment Revenue Digital and Application Services Segment Results Digital and Application Services Digital Foundation Services Less: Finance costs Segment Results Profit before exceptional item and tax Less: Unallocable expenditure net of unallocable income	8,001 1,367	7,445 1,318	8,052 1,860	31,167 6,647
	9,368	8,763	9,912	37,814
	1,526 172	1,604 205	1,188 252	6,050 980
	1,698	1,809	1,440	7,030
	89 215	122 466	152 274	535 1,675
	1,395	1,221	1,014	4,820

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	Statement of Segment Assets & Liabilities	30-Jun-2021	31-Mar-2021	30-Jun-2020
		Unaudited	Audited	Unaudited
1 2	Digital and Application Services Digital Foundation Services Inventories Digital and Application Services Digital Foundation Services Unbilled Revenue Digital and Application Services Digital Foundation Services Goodwill Digital and Application Services Digital Foundation Services Unallocable Assets Total Unbilled Revenue Segment Assets Trade Receivables Total Trade Receivables Total Inventories Total Goodwill	5,223 788 6,011 - - - 2,300 317 2,617 4,456 1,398 5,854 21,602	5,028 860 5,888 - - - 2,105 315 2,420 4,395 1,375 5,770 20,256	4,880 1,475 6,355 - 940 940 2,471 466 2,937 4,421 2,029 6,450 19,801
	TOTAL ASSETS	36,084	34,334	36,483
	Digital and Application Services Digital Foundation Services Unallocable Liabilities Segment Liabilities Unearned Revenue Total Unearned Revenue	338 88 426 10,750	258 66 324 10,299	162 326 488 14,047
	TOTAL LIABILITIES	11,176	10,623	14,535

Notes :

1 These unaudited results have been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard 34 “Interim Financial Reporting ”(“IndAS 34”), prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued there under as amended from time to time. The above financial results were reviewed and recommended by the Audit Committee and taken on record by the Board of Directors at their meeting held on 26 July 2021.
2 Results of Zensar Technologies Limited on a stand alone basis are hosted on the Company's website www.zensar.com.

Stand-Alone Financial In	formation	formation	formation	formation
Particulars	Quarter Ended			Year Ended
	30-Jun-2021	31-Mar-2021	30-Jun-2020	31-Mar-2021
	Unaudited	Unaudited	Unaudited	Audited
Net profit for the period Profit before tax Revenue from operations	3,702 986 760	3,479 978 810	3,284 892 653	13,618 3,732 2,896

3 Events after the reporting period

On 15 May 2021, the Company and through its wholly owned subsidiary, Zensar Technologies Inc. entered into Share Purchase Agreement to acquire 100% equity in M3bi India Private Limited and M3bi LLC, a USA based company respectively for a purchase consideration not exceeding INR 178 Mn and USD 21.6 Mn payable upfront along with a performance based deferred payments not exceeding USD 9 Mn over next 36 months respectively (deferred payment applicable to acquisition of M3bi LLC only).

The acquisitions have been consummated on 8 July and 14 July 2021 and effective the said dates, M3Bi India Private Limited and M3Bi LLC became 100% subsidiaries of Zensar Technologies Limited and Zensar Technologies Inc respectively.
4 The term of the erstwhile Managing Director and CEO of the Company ended on 11 January 2021, however his employment at Zensar Technologies Inc. US (100% subsidiary of Zensar Technologies Limited) was extended till 12 February 2021 to facilitate a smooth transition. The Company, post obtaining the necessary approvals (including shareholder’s approval), had paid and accounted for the one time additional payment of USD 2.40 Mn to the erstwhile Managing Director and CEO during the quarter and year ended 31 March 2021.
5 The Board of Directors in their meeting held on 29 April 2021 have recommended a final dividend of INR 2.40 per equity share, subject to the approval of shareholders.
6 During the quarter ended 31 March 2021, Group reversed contingent consideration payable on business combinations consummated in previous years amounting to INR 41 Mn [USD 0.55 Mn] based on company’s assessment, being no longer payable.
7 During the quarter ended 30 September 2020, Zensar Group classified its Third Party Maintenance (‘TPM’) business housed in its subsidiaries, PSI Holding Group Inc, Zensar Technologies IM Inc and Zensar Technologies IM B.V. (collectively referred to as "PSI Group” or “disposal group”) as “Held for Sale” and impact pertaining to adjustment to the carrying amount and fair value less transaction cost associated to sell INR 1,105 Mn and the reversal of deferred tax liability of INR 218 Mn on account of this sale are disclosed as exceptional item.
On 19 October 2020, the Company signed an agreement (subject to certain closing conditions which included approval of shareholders) for sale of PSI Group for a consideration of USD 10 million receivable upfront (subject to working capital adjustment) and USD 5 million performance based deferred earnouts. On completion of the closing conditions on 2 December 2020, the differential impact has been disclosed as exceptional item, including the reclassification of balance in Foreign currency translation reserve to the Consolidated Statement of Profit and Loss amounting to gain of INR 374 Mn. Adjustment to consideration due to be finalized 75 days after the closing date have been adjusted in quarter ended 31 March 2021, Further process of settlement to final amount between buyer and seller is in progress as per the SPA terms, any change thereon would be accounted once concluded. The disposal group does not constitute a separate major component of the Zensar Group and therefore has not been classified as discontinued operations in the Consolidated Statement of Profit and Loss.
8 Zensar Group had investment in Aquila Technology Corporation (Aquila) and Aquila was not considered as a subsidiary of the group within the definition prescribed under Ind AS 110 and hence not consolidated by the Group. For its investments in Aquila, Group accounts for the changes in fair value through other comprehensive income. On 25 February 2021, Company signed an agreement for sale of its investment in Aquila for a consideration of USD 1.31 million receivable upfront (subject to working capital adjustment and novation of customer contracts) and an amount upto USD 0.60 million for performance based deferred earnouts. On completion of the closing conditions on 26 February 2021, the differential impact between estimated total consideration less cost to sell and carrying value of investment amounting to USD 0.38 million has been accounted under other comprehensive income. Further, adjustment to contingent consideration is due to be finalized within 24 months after the closing date and adjustment if any would be accounted then.
9 The Company continues to actively manage its business during COVID-19 pandemic and has not yet experienced significant changes on the business impact than estimated earlier. In assessing the assumptions relating to the possible future uncertainties in the global economic conditions because of this pandemic, nothing has come to the attention of the Company through internal and external sources, which warrants a reassessment of carrying amounts of financial and non-financial assets on the expected future performance of the Company.

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For and on behalf of the Board Ajay Singh Bhutoria CEO and Managing Director DIN:09013862

Mumbai Date: 26 July 2021

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Zensar reports 5.8% sequential QoQ growth in revenue for Q1FY22

Pune, India, July 26, 2021: Zensar Technologies, a leading digital solutions and technology services company, announced its consolidated financial results for its first quarter ending June 30, 2021, of the fiscal year 2021-2022.

Financial Highlights:

In Q1FY22, the company reported revenue of $127.2 Mn, a sequential QoQ growth of 5.8%
PAT grew sequentially by 10.9% QoQ and YoY by 43.4%
EBITDA grew YoY by 25.5%
The company reported net cash $183.2 Mn in Q1FY22 vs. $166.3 Mn as of March 31, 2021
Hi-Tech services grew sequentially by 13.5% QoQ and Banking vertical posted a sequential QoQ growth of 5.2%
US region reported sequential QoQ growth of 6.7%. South Africa region reported a sequential QoQ growth of 9.5%
Headcount as of June 30, 2021 stood at 9512

Ajay S. Bhutoria, Chief Executive Officer and Managing Director, Zensar Technologies, said , "Driven by strong business and operational focus, we saw our revenue increase sequentially QoQ by 5.8% in Q1FY22, and our PAT by 10.9%. This growth is underpinned by healthy performance in our key verticals of Hi-Tech/Manufacturing and Financial Services, and momentum in our US and South Africa regions. With our strategic growth areas clearly defined, we continue to strengthen our go-to-market along stated focus areas. In line with this, we completed the acquisition of M3bi, which augments and strengthens our advanced engineering and data analytics capabilities."

Adding further, he commented, "We continue to work closely with our clients during this pandemic to deepen our expertise and strengthen our offerings. We have stepped up our initiatives to enhance the skills of our associates and ready them for transformative projects with our clients and carry out new directions in thinking."

Navneet Khandelwal, Chief Financial Officer, Zensar Technologies, said , "Q1FY22 has seen growth in PAT at 43.4% YoY. Our continued focus on cash generation has resulted in our cash position further strengthening to $183.2 Mn in Q1FY22. Our EBITDA has grown by 25.5% YoY, with our earlier initiatives bearing results in this fiscal. We have concluded the acquisition of M3bi in July, and their revenues will be included in our performance from Q2 onwards."

*Numbers presented above are adjusted to exclude TPM business performance and adjusted for exceptional items unless otherwise mentioned

Significant Wins in Q1FY22:

Application and development maintenance services for a global risk management company
Application and development maintenance mandate for a large US Hi-Tech company
Cloud services for a US-based city/or civic body
Digital services mandate for a US-based insurance service provider
Application and development maintenance services for a Europe based material and logistics automation company
CX services for a US-based entertainment brand
CX services mandate for a US-based diagnostics company
Enterprise application services for a large US-based conglomerate

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Corporate Excellence Snapshot in Q1FY22:

Zensar has been mentioned as a “Niche Player” in Gartner Magic Quadrant for Managed Mobility Services, Global
Zensar has been positioned as a "Major Contender" on the Application and Digital Services in Banking PEAK Matrix® Assessment 2021
Zensar has been featured in the service providers list of Gartner Digital Commerce Vendor Guide 2021
Zensar has been mentioned as "Product Challenger" for Managed Services for Large Accounts in Next-Gen Private/Hybrid Cloud - Data Center Services & Solutions
Zensar has been mentioned as "Leader" for Managed Services for Midmarket for Large Accounts in Next-Gen Private/Hybrid Cloud - Data Center Services & Solutions
Zensar has been mentioned as "Major Contender" in Application and Digital Services in Banking PEAK Matrix® Assessment 2021: Global and Europe Focus

Awards and Recognitions in Q1FY22:

Zensar Technologies Wins 2021 Artificial Intelligence Breakthrough Award for 'Best Use of Virtual Reality for Retail Applications'
AVA Digital awards (Indigo Slate, a Zensar company)
Digital Marketing | Marketing, Digital | 1c. Digital Marketing Campaign-Make it campaign
Digital Marketing | Marketing, Digital | 7c. COVID-19 Digital Response-ONE Sale
Web-Based Production | Creativity (Web Video) | 353. Motion Graphics DesignFamily safety App video
Digital Video Creation | Digital Video Creation | 402. Motion Graphics ProductAmazon Gaming Videos
Web-Based Production | Short Form Web Video < 3 Minutes | 304. Demo Reel- SAP Concur self-guided tour

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About Zensar (www.zensar.com)

Zensar is a digital solutions and technology services company that partners with global organizations across industries to achieve digital transformation. With a strong track record of innovation, investment in digital solutions, and commitment to client success, Zensar's comprehensive range of services and solutions help clients achieve new thresholds of business performance through client satisfaction, excellence in delivery, and innovation.

Follow Zensar via:

Zensar Blog: http://www.zensar.com/blogs Twitter: https://twitter.com/Zensar LinkedIn: https://www.linkedin.com/company/zensar-technologies

About RPG Enterprises (www.rpggroup.com)

RPG Enterprises, established in 1979, is one of India's fastest-growing business groups with a turnover of US$ 4 Billion. The group has diverse business interests in the areas of Infrastructure, Tires, Pharma, IT and Specialty as well as in emerging innovation led technology businesses.

For any queries please feel free to reach out:

PR Contacts (Global) Aradhana Prabhu Public Relations Zensar Technologies [email protected]

Safe Harbor

Certain statements in this release concerning our future prospects are forward-looking statements which involve a number of underlying identified / non identified risks and uncertainties that could cause actual results to differ materially. This release and other statements – written and oral –that we periodically make contain forwardlooking statements that set out anticipated results based on the management's plans and assumptions. However the same are subject to risks and uncertainties, including but not limited to, our ability to manage growth; fluctuations in earnings /exchange rates; intense competition in IT services including factors affecting cost advantage; wage increases; ability to attract and retain highly skilled professionals; time and cost overruns on fixed price, fixed-time frame or other contracts; client concentration; restrictions on immigration; our ability to manage international operations; reduced demand for technology in our service offerings; disruptions in telecommunication networks; our ability to successfully complete and integrate acquisitions; liability for damages on our service contracts; government measures in India and countries where our customer operate, withdrawal of governmental fiscal incentives; economic downturn in India, and/or around the world, political instability, legal restrictions on raising capital or acquiring companies; and unauthorized use of intellectual property and general economic conditions affecting the industry.

In addition to the foregoing, global pandemic like COVID-19 may pose an unforeseen, unprecedented, unascertainable and constantly evolving risk(s), inter-alia, to us, our customers, delivery models, vendors, partners, employees, general global operations and may also impact the success of companies in which we have made strategic investments, demand for Company's offerings and the onshore-offshore-nearshore delivery model.

The results of these assumptions made relying on available internal and external information are the basis for determining the carrying values of certain assets and liabilities. Since the factors underlying these assumptions are subject to change over time, the estimates on which they are based, are also subject to change accordingly. These forward-looking statements represent only the Company's current intentions, beliefs or expectations, and any forward-looking statement speaks only as of the date on which it was made. The Company assumes no

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obligation to revise or update any forward-looking statements, whether as a result of new information, future events, or otherwise.

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Zensar reports 5.8% sequential QoQ growth in revenue for Q1FY22

Financial Highlights:

In Q1FY22, the company reported revenue of $127.2 Mn, a sequential QoQ growth of 5.8%
PAT grew sequentially by 10.9% QoQ and YoY by 43.4%
EBITDA grew YoY by 25.5%
The company reported net cash $183.2 Mn in Q1FY22 vs. $166.3 Mn as of March 31, 2021
Hi-Tech services grew sequentially by 13.5% QoQ and Banking vertical posted a sequential QoQ growth of 5.2%
US region reported sequential QoQ growth of 6.7%. South Africa region reported a sequential QoQ growth of 9.5%
Headcount as of June 30, 2021 stood at 9512

*Numbers presented above are adjusted to exclude TPM business performance and adjusted for exceptional items unless otherwise mentioned

Significant Wins in Q1FY22:

Application and development maintenance services for a global risk management company
Application and development maintenance mandate for a large US Hi-Tech company
Cloud services for a US-based city/or civic body
Digital services mandate for a US-based insurance service provider
Application and development maintenance services for a Europe based material and logistics automation company
CX services for a US-based entertainment brand
CX services mandate for a US-based diagnostics company
Enterprise application services for a large US-based conglomerate

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Corporate Excellence Snapshot in Q1FY22:

Zensar has been mentioned as a “Niche Player” in Gartner Magic Quadrant for Managed Mobility Services, Global
Zensar has been positioned as a "Major Contender" on the Application and Digital Services in Banking PEAK Matrix® Assessment 2021
Zensar has been featured in the service providers list of Gartner Digital Commerce Vendor Guide 2021
Zensar has been mentioned as "Product Challenger" for Managed Services for Large Accounts in Next-Gen Private/Hybrid Cloud - Data Center Services & Solutions
Zensar has been mentioned as "Leader" for Managed Services for Midmarket for Large Accounts in Next-Gen Private/Hybrid Cloud - Data Center Services & Solutions
Zensar has been mentioned as "Major Contender" in Application and Digital Services in Banking PEAK Matrix® Assessment 2021: Global and Europe Focus

Awards and Recognitions in Q1FY22:

Zensar Technologies Wins 2021 Artificial Intelligence Breakthrough Award for 'Best Use of Virtual Reality for Retail Applications'
AVA Digital awards (Indigo Slate, a Zensar company)
Digital Marketing | Marketing, Digital | 1c. Digital Marketing Campaign-Make it campaign
Digital Marketing | Marketing, Digital | 7c. COVID-19 Digital Response-ONE Sale
Web-Based Production | Creativity (Web Video) | 353. Motion Graphics DesignFamily safety App video
Digital Video Creation | Digital Video Creation | 402. Motion Graphics ProductAmazon Gaming Videos
Web-Based Production | Short Form Web Video < 3 Minutes | 304. Demo Reel- SAP Concur self-guided tour

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Q1 FY 22 Revenue and Profitability snapshot

Particulars	Q1 FY22	Q1 FY22	Growth	Growth	Growth	Growth	Growth	Growth
	USD Mn	INR Mn	Q-o-Q			Y-o-Y
			USD	INR	CC	USD	INR	CC
Revenue	$ 127.2	₹ 9368	5.8%	6.8%	4.8%	1.6%	(1.2%)	(3.1%)
EBITDA	$ 23.5	₹ 1725	(1.8%)	(1.0%)		25.5%	21.7%
EBIT	$ 17.7	₹ 1300	(0.5%)	0.1%		37.1%	32.8%
PAT	$ 13.8	₹ 1010	10.9%	11.7%		43.4%	38.9%

Performance Highlights

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Revenue (USD M)
127.2
125.8
125.2
122.8
120.2
Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22
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EBITDA (%)
20.6%
19.4% 19.9%
18.5%
14.9%
Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22
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PAT (%) Million Dollar Clients
10.9% 10.3% 10.8% 24 23 24 24 24
9.4%
7.7%
9
8 8 8
7
3
2 2 2 2
Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22
Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 5M+ Clients 10M+ Clients 20M+ Clients
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*Numbers presented above are adjusted to exclude TPM business performance and adjusted for exceptional items unless otherwise mentioned

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Income Statement (USD Mn)

Income Statement(USD Mn)	Q1 FY 21 Q4 FY 21 FY 21 Q1 FY 22

Operating revenue	125.2 120.2 494.0 127.2
Sequential Growth Year-Over-Year Growth Cost of revenue	-7.2% -2.1% 5.8% -15.0% -10.9% -12.7% 1.6% 88.1 78.3 328.7 82.9
Grossprofit	37.0 41.9 165.3 44.3
Gross profit % of revenue Sequential Growth Year-Over-Year Growth Sales and marketing expenses General and administration expenses Operating expenses % of revenue Other operatingincome	29.6% 34.9% 33.5% 34.8% -8.5% -1.4% 5.5% -15.6% 3.7% 3.3% 19.5% 6.5 5.9 28.2 8.1 11.8 12.1 44.9 12.7 18.3 18.0 73.0 20.8 14.6% 15.0% 14.8% 16.4% - - - -
Earnings before interest, tax, depreciation and amortization(EBITDA)	18.7 23.9 92.3 23.5
EBITDA % of revenue Sequential Growth Year-Over-Year Growth Depreciation and amortisation	14.9% 19.9% 18.7% 18.5% -5.2% -5.3% -1.8% -13.3% 21.0% 29.9% 25.5% 5.8 6.1 23.3 5.8
Earnings before interest and tax(EBIT)	12.9 17.8 68.9 17.7
EBIT % of revenue Sequential Growth Year-Over-Year Growth Interest Exchange Gain/(Loss) Other income	10.3% 14.8% 14.0% 13.9% -8.4% -8.9% -0.5% -20.3% 26.2% 40.9% 37.1% 2.0 1.7 7.2 1.2 1.1 -0.5 -1.5 0.8 1.2 1.4 4.9 1.7
Profit before tax	13.3 17.0 65.1 19.0
% of revenue Sequential Growth Year-Over-Year Growth Provision for taxation	10.6% 14.2% 13.2% 14.9% -4.8% -7.5% 11.5% -16.6% 22.1% 23.2% 43.0% 3.5 4.3 17.0 5.0
Profit after tax(before minority interest)	9.8 12.7 48.1 14.0
% of revenue Minority interest	7.8% 10.6% 9.7% 11.0% 0.2 0.3 0.9 0.2
Profit after tax	9.6 12.4 47.2 13.8
Profit after tax % of revenue Sequential Growth Year-Over-Year Growth	7.7% 10.3% 9.5% 10.8% -2.0% -7.2% 10.9% -14.6% 26.6% 27.4% 43.4%

*Numbers presented above are adjusted to exclude TPM business performance and adjusted for exceptional items unless otherwise mentioned

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Income Statement (INR Mn)

Income Statement(INR Mn)	Q1 FY 21 Q4 FY 21 FY 21 Q1 FY 22

Operating revenue	9,485 8,767 36,682 9,368
Sequential Growth Year-Over-Year Growth Cost of revenue	-2.8% -3.3% 6.8% -7.4% -10.2% -8.5% -1.2% 6,679 5,708 24,417 6,109
Grossprofit	2,806 3,059 12,264 3,258
Gross profit % of revenue Sequential Growth Year-Over-Year Growth Sales and marketing expenses General and administration expenses Operating expenses % of revenue Other operating income	29.6% 34.9% 33.4% 34.8% -4.2% -2.6% 6.5% -8.1% 4.5% 8.1% 16.1% 494 431 2,090 596 894 885 3,332 937 1,389 1,316 5,423 1,533 14.6% 15.0% 14.8% 16.4% - - - -
Earnings before interest, tax, depreciation and amortization(EBITDA)	1,418 1,743 6,841 1,725
EBITDA % of revenue Sequential Growth Year-Over-Year Growth Depreciation and amortisation	14.9% 19.9% 18.7% 18.4% -0.8% -6.4% -1.0% -5.5% 21.9% 35.8% 21.7% 439 445 1,733 426
Earnings before interest and tax(EBIT)	979 1,298 5,109 1,300
EBIT % of revenue Sequential Growth Year-Over-Year Growth Interest Exchange Gain/(Loss) Other income	10.3% 14.8% 13.9% 13.9% -4.1% -10.0% 0.1% -13.1% 27.2% 47.2% 32.8% 152 122 535 89 86 -38 -112 58 93 104 367 126
Profit before tax	1,007 1,242 4,828 1,395
% of revenue Sequential Growth Year-Over-Year Growth Provision for taxation	10.6% 14.2% 13.2% 14.9% -0.3% -8.7% 12.3% -9.0% 23.0% 28.8% 38.5% 263 314 1,262 369
Profit after tax(before minority interest)	743 928 3,566 1,026
% of revenue Minority interest	7.8% 10.6% 9.7% 11.0% 16 23 70 16
Profit after tax	727 905 3,497 1,010
Profit after tax % of revenue Sequential Growth Year-Over-Year Growth	7.7% 10.3% 9.5% 10.8% 2.6% -8.3% 11.7% -6.8% 27.6% 33.0% 38.9%

*Numbers presented above are adjusted to exclude TPM business performance and adjusted for exceptional items unless otherwise mentioned

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	Other Metrics	Q1 FY 21	Q4 FY21	FY21	Q1 FY 22
	Revenue By Service Offering (as % of Revenue) Digital & Application Services (DAS) Digital Services Core Application Services Digital Foundation Services (DFS) Cloud, Digital Led next gen CIS Core Infrastructure Services *Total Digital Services*	84.9% 84.9% 85.0% 85.4% 52.8% 55.9% 54.5% 57.9% 32.1% 29.0% 30.5% 27.5% 15.1% 15.1% 15.0% 14.6% 9.3% 10.0% 9.7% 10.1% 5.8% 5.1% 5.3% 4.5% *62.2%* *65.9%* *64.2%* *68.0%*
	Revenue By Industry (as % of Revenue) Hi Tech Mfg Consumer Services Insurance Banking Emerging	45.6% 39.1% 41.9% 41.9% 12.3% 12.4% 12.2% 11.3% 12.4% 15.3% 14.2% 14.5% 19.4% 20.2% 19.8% 18.7% 7.9% 10.0% 9.1% 9.9% 2.4% 3.0% 2.8% 3.7%
	Revenue By Geographical Segment (as % of Revenue) US Europe Africa	74.9% 69.6% 72.1% 70.2% 14.9% 18.6% 16.7% 17.6% 10.2% 11.8% 11.3% 12.2%
	Revenue By Project Type (as % of Revenue) Fixed Price Time & Materials	59.8% 61.5% 60.8% 64.4% 40.2% 38.5% 39.2% 35.6%
	Constant Currency Operating revenue (Constant Currency mn) Sequential Growth Year-Over-Year Growth	128.2 118.6 497.9 126.0 -5.0% -3.4% -12.0% 4.8% -12.3% -12.2% -12.0% -3.1%
	Constant Currency Growth By Industry (QoQ %) Hi Tech Mfg Consumer Services Insurance Banking Emerging	3.0% -3.8% -8.9% 13.0% -2.2% -2.1% -15.4% -4.4% -21.1% -3.8% -21.6% -0.1% -7.1% 0.1% -12.6% -3.8% -11.6% -2.7% 2.1% 2.3% -12.6% -23.8% -22.2% 28.5%

*Numbers presented above are adjusted to exclude TPM business performance unless otherwise mentioned

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	Other Metrics	Q1 FY 21 Q4 FY21 FY21 Q1 FY 22
	Number of million dollar Clients (LTM Revenue) 1 Million dollar + 5 Million dollar + 10 Million dollar + 20 Million dollar + Revenue from top clients Revenue- top 5 clients Revenue- top 10 clients Revenue- top 20 clients Number of active clients	80 78 78 79 24 24 24 24 9 7 7 8 2 2 2 3 43.1% 37.0% 38.8% 38.4% 53.7% 48.0% 50.0% 49.4% 68.1% 63.0% 63.7% 63.7% 132 134 134 135
	Onsite-Offshore (as % of Revenue) Revenue mix Onsite Offshore Utilization Utilization(excludingTrainees)	63.4% 56.6% 59.4% 58.3% 36.6% 43.4% 40.6% 41.7% 82.2% 81.3% 81.3% 80.4%
	Employee data Headcount Technical - Onsite Technical - Offshore Gross employees added during the period % of women employees Voluntary Attrition % (LTM)	8,955 9,111 9,111 9,512 2,151 1,820 1,820 1,870 5,919 6,338 6,338 6,654 229 1,332 2946 1,508 30.2% 30.1% 30.1% 29.5% 15.9% 14.8% 14.8% 18.1%
	Exchange Rates (Rupee Dollar Rate) Period Closing Rate Period Average Rate	75.5 73.1 73.1 74.3 75.8 72.9 74.2 73.7
	Accounts receivables (in days) Billed Unbilled Total	44 51 51 55 29 26 26 25 73 77 77 80
	Summary of Cash and Cash Equivalents Cash and Cash Equivalents (USD Mn)** Balances with Banks	86.8 95.6 95.6 117.8
	Investment in Mutual Funds Debt(USD Mn) ****	42.6 70.7 70.7 65.4 28.3 - - -
	Total Outstanding Hedges(In USD) **	152.6 122.3 122.3 136.1
	Capex(USD Mn) **	2.6 0.3 5.3 0.9

** Not adjusted for TPM

*Numbers presented above are adjusted to exclude TPM business performance unless otherwise mentioned

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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 free to reach out:

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

Safe Harbor

Certain statements in this release concerning our future prospects are forward-looking statements which involve a number of underlying identified/non identified risks and uncertainties that could cause actual results to differ materially. This release and other statements – written and oral – that we periodically make contain forward-looking statements that set out anticipated results based on the management’s plans and assumptions. However the same are subject to risks and uncertainties, including but not limited to, our ability to manage growth; fluctuations in earnings/exchange rates; intense competition in IT services including factors affecting cost advantage; wage increases; ability to attract and retain highly skilled professionals; time and cost overruns on fixed price, fixed-time frame or other contracts; client concentration; restrictions on immigration; our ability to manage international operations; reduced demand for technology in our service offerings; disruptions in telecommunication networks; our ability to successfully complete and integrate acquisitions; liability for damages on our service contracts; government measures in India and countries where our customer operate, withdrawal of governmental fiscal incentives; economic downturn in India, and/or around the world, political instability, legal restrictions on raising capital or acquiring companies; and unauthorized use of intellectual property and general economic conditions affecting the industry.

In addition to the foregoing, global pandemic like COVID-19 may pose an unforeseen, unprecedented, unascertainable and constantly evolving risk(s), inter-alia, to us, our customers, delivery models, vendors, partners, employees, general global operations and may also impact the success of companies in which we have made strategic investments, demand for Company’s offerings and the onshore-offshore-nearshore delivery model.

The results of these assumptions made relying on available internal and external information are the basis for determining the carrying values of certain assets and liabilities. Since the factors underlying these assumptions are subject to change over time, the estimates on which they are based, are also subject to change accordingly. These forward-looking statements represent only the Company’s current intentions, beliefs or expectations, and any forwardlooking statement speaks only as of the date on which it was made. The Company assumes no obligation to revise or update any forward-looking statements, whether as a result of new information, future events, or otherwise

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Zensar Technologies

Analyst Presentation Q1 FY22 Quarter Ending June 30, 2021

www.zensar.com | © Zensar Technologies 2021

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Safe Harbor
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Certain statements in this release concerning our future prospects are forward-looking statements which involve a number of underlying identified/non identified risks and uncertainties that could cause actual results to differ materially. This release and other – – statements written and oral that we periodically make contain forward-looking statements that set out anticipated results based on the management’s plans and assumptions. However the same are subject to risks and uncertainties, including but not limited to, our ability to manage growth; fluctuations in earnings/exchange rates; intense competition in IT services including factors affecting cost advantage; wage increases; ability to attract and retain highly skilled professionals; time and cost overruns on fixed price, fixed-time frame or other contracts; client concentration; restrictions on immigration; our ability to manage international operations; reduced demand for technology in our service offerings; disruptions in telecommunication networks; our ability to successfully complete and integrate acquisitions; liability for damages on our service contracts; government measures in India and countries where our customer operate, withdrawal of governmental fiscal incentives; economic downturn in India, and/or around the world, political instability, legal restrictions on raising capital or acquiring companies; and unauthorized use of intellectual property and general economic conditions affecting the industry. In addition to the foregoing, global pandemic like COVID-19 may pose an unforeseen, unprecedented, unascertainable and constantly evolving risk(s), inter-alia, to us, our customers, delivery models, vendors, partners, employees, general global operations and may also impact the success of companies in which we have made strategic investments, demand for Company’s offerings and the onshore-offshore-nearshore delivery model.

The results of these assumptions made relying on available internal and external information are the basis for determining the carrying values of certain assets and liabilities. Since the factors underlying these assumptions are subject to change over time, the estimates on which they are based, are also subject to change accordingly. These forward-looking statements represent only the Company’s current intentions, beliefs or expectations, and any forward-looking statement speaks only as of the date on which it was made. The Company assumes no obligation to revise or update any forward-looking statements, whether as a result of new information, future events, or otherwise

Q1FY22 Snapshot

$127.2 M Revenue up 5.8% QoQ

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5.8% QoQ growth

Highest organic growth in last 6 years

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34.8%
Gross Margin
down 8 bps QoQ
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$183.2 M Highest ever Net cash

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18.5% 10.8%
EBITDA PAT
down 142 bps QoQ up 50 bps QoQ
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9512 Headcount $96.7 M Increase of 401 Wins associates

9512 Headcount

*Numbers presented above are adjusted to exclude TPM business performance

www.zensar.com | © Zensar Technologies 2021

Revenue Split

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Emerging
Africa
3.7%
DFS
Banking
9.9% 12.2% 14.6%
Insurance Hi-Tech Europe
41.9% 17.6%
18.7% US DAS
70.2%
14.5%
85.4%
11.3%
Consumer
Services
Mfg
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	Vertical		QoQ*
	Hi-Tech		13.5%
	Manufacturing		(4.1%)
	Banking		5.2%
	Insurance		(2.2%)
	Consumer Services		0.6%


	Geography		QoQ*
	US		6.7%
	Europe		0.1%
	Africa		9.5%



Service Line QoQ*
Digital and Application Services 6.4%
Digital Foundation Services 2.3%

*Represents sequential QoQ growth

**Numbers presented above are adjusted to exclude TPM business performance

www.zensar.com | © Zensar Technologies 2021

Revenue and EBITDA walk

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3.3M USD 127.2M
2.5M
1.1M
USD 120.2M
Revenue walk
Revenue mix Hi-Tech and Mfg.
Q4FY21 Exchange impact and volume impact Q1FY22
0.9%
2.1% 2.8%
EBITDA walk
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Q4FY21 Exchange Volume and Higher cost of SG&A impact Q1FY22 USD 23.9M impact utilization delivery -2.8M USD 23.5M 1.1M 2.3M -1.1M

GM impact

*Numbers presented above are adjusted to exclude TPM business performance

www.zensar.com | © Zensar Technologies 2021

Client metrics

Million+ dollar clients (LTM)

Q1FY21 Q4FY21 Q1FY22 20 Mn Dollar+ 2 2 3 10 Mn Dollar+ 9 7 8 5 Mn Dollar+ 24 24 24

Revenue mix (% of total revenue)

Q1FY21 Q4FY21 Q1FY22 Top 5 Clients 43.1% 37.0% 38.4% Top 10 Clients 53.7% 48.0% 49.4% Top 20 Clients 68.1% 63.0% 63.7%

*Numbers presented above are adjusted to exclude TPM business performance

Key wins for the quarter

Product development for an online gaming and software development company

Next-gen product development for a global logistic solutions market leader

Enabled seamless customer onboarding for a global risk management firm

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Digital workplace transformation for a global drug wholesale company

Application development services for a multinational luxury brand

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Multi service line application development for a global social welfare organization

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M3bi accelerating Zensar’s thrust

Zensar successfully concluded M3bi acquisition on July 14, 2021

Capabilities strengthened

Architects, business 445 professionals across analysts, and data the US and India engineering solutions specialists

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Cross-section of Adds marquee clients capabilities addressing to Zensar’s portfolio. the needs of CIO, Strengthens BFSI and CMO, and CDO other verticals

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Data Engineering and Advanced Analytics Advanced Engineering and Experience Services Artificial Intelligence and Machine Learning Product and Platform Engineering Services

Awards and Recognitions

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Recognized as a Niche Player in Gartner Magic Quadrant for Managed Mobility Services (Global)

Featured in the service providers list of Gartner Digital Commerce Vendor Guide 2021

Leader for Managed Services for large accounts in NextGen Private/Hybrid Cloud - Data Center Services & Solutions

Recognized as a Major Contender in the Application and Digital Services in Banking PEAK Matrix® Assessment 2021

Multiple awards for Digital Marketing and Web-based production

Best Use of Virtual Reality for Retail Applications

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Zensar’s COVID support and social initiatives

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Vaccination Drive

Associate well-being

Societal Impact

Conducted vaccination drives for associates and their families across multiple cities
Covered vaccination costs for our associates
Supported associates with oxygen concentrators & ambulance service
Introduced Caregiver leaves
Provided education allowances for children of associates who lost their lives to COVID
Organized Covid awareness sessions for associates and families
Employability: Organized master classes on various topics by Industry experts; Trained 2504 students to date
Fever clinics: Developed by RPG Foundation with support from the National Health Mission and the
Public Health Department (Maharashtra) to ensure easier access to healthcare support in rural Maharashtra. 30 Fever Clinics built, of which 4 funded by Zensar

RPG Overview

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26-07-2021

RPG group key financials

FY17-21 CAGR: 7.0%

Gross Total Income (Rs Cr.)

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26,269
24,682
23,833
21,766
20,052
FY17 FY18 FY19 FY20 FY21
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FY17-21 CAGR: EBITDA 10.1% PAT 8.9%

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EBITDA PAT
EBITDA 10.1% PAT 8.9%
3,006
2,594
2,423
2,218
2,045
1,377
1,031 1,099 1,111
980
FY17 FY18 FY19 FY20 FY21
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Net Worth ROE ROCE 9,786
8,441
7,775
6,925
6,066
16.2%
14.9%
14.1% 14.1%
13.2%
13.5%
12.3% 12.0%
11.0% 10.7%
FY17 FY18 FY19 FY20 FY21
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Note:

1) ROCE is calculated by taking EBIT*(1-ETR) divided by Capital Employed 2) www.zensar.com | © Zensar Technologies 2021 ROE is calculated by taking PAT divided by Net-worth 3) Market Cap updated till 30[th] June 2021

Market Cap

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26,255
11,655
7,026
5,501
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Jul/20 Aug/20 Sep/20 Oct/20 Nov/20 Dec/20 Jan/21 Feb/21 Mar/21 Apr/21 May/21 Jun/21 Group CEAT KEC ZENSAR

Stock Price and shareholding pattern

Share Price Total Volume

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350 40,000,000
35,000,000
300
30,000,000
250 25,000,000
20,000,000
200
15,000,000
10,000,000
150
5,000,000
100 0
Jul/20 Aug/20 Sep/20 Oct/20 Nov/20 Dec/20 Jan/21 Feb/21 Mar/21 Apr/21 May/21 Jun/21
Volume
Share Price in Rs
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Equity Share Information:

Share Price (June 30, 2021): Rs 311.35/share
Market Cap (June 30, 2021): Rs 7,026 Crs
Financial Year: April to March
Face Value: Rs 2/share
Listed on Indian Stock Exchanges:
a) Bombay Stock Exchange (code: 504067)
b) National Stock Exchange (code: ZENSARTECH)
Bloomberg Code: ZENT.IN
Reuters Code: ZENT.BOx

Shareholding Pattern (as on June 30, 2021):

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22.5%
49.2%
16.8%
11.4%
Apax Partners FPIs DIIs/ Others
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Promoter

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Thank You

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AI assistant

Zensar Technologies Ltd. — Interim / Quarterly Report 2021

61559_rns_2021-07-26_358179cf-6ce0-4a89-98f8-f68d8c10245d.pdf

BSE Limited

The National Stock Exchange of India Ltd.

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

TO THE BOARD OF DIRECTORS OF ZENSAR TECHNOLOGIES LIMITED

For Deloitte Haskins & Sells LLP

Saira Nainar

Zensar Technologies Limited

Registered Office : Zensar Knowledge Park, Kharadi, Plot # 4 , MIDC, Off Nagar Road, Pune - 411014, India. CIN: L72200PN1963PLC012621 Statement of Unaudited Standalone Results for the Quarter ended 30 June 2021

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

TO THE BOARD OF DIRECTORS OF ZENSAR TECHNOLOGIES LIMITED

For Deloitte Haskins & Sells LLP

Saira Nainar

Annexure to Auditor's Review Report:

List of Entities:

Zensar reports 5.8% sequential QoQ growth in revenue for Q1FY22

Financial Highlights:

Significant Wins in Q1FY22:

Corporate Excellence Snapshot in Q1FY22:

Awards and Recognitions in Q1FY22:

About Zensar (www.zensar.com)

Follow Zensar via:

About RPG Enterprises (www.rpggroup.com)

For any queries please feel free to reach out:

Safe Harbor

Zensar reports 5.8% sequential QoQ growth in revenue for Q1FY22

Financial Highlights:

Significant Wins in Q1FY22:

Corporate Excellence Snapshot in Q1FY22:

Awards and Recognitions in Q1FY22:

Q1 FY 22 Revenue and Profitability snapshot

Performance Highlights

Income Statement (USD Mn)

Income Statement (INR Mn)

Follow Zensar via:

About RPG Enterprises (www.rpggroup.com)

For any queries please feel free to reach out:

Safe Harbor

Zensar Technologies

Q1FY22 Snapshot

5.8% QoQ growth

9512 Headcount

Revenue Split

Revenue and EBITDA walk

GM impact

Client metrics

Million+ dollar clients (LTM)

Revenue mix (% of total revenue)

Key wins for the quarter

M3bi accelerating Zensar’s thrust

Zensar successfully concluded M3bi acquisition on July 14, 2021

Capabilities strengthened

Awards and Recognitions

Zensar’s COVID support and social initiatives

Vaccination Drive

Associate well-being

Societal Impact

RPG Overview

RPG group key financials

Gross Total Income (Rs Cr.)

Note:

Market Cap

Stock Price and shareholding pattern

Equity Share Information:

Shareholding Pattern (as on June 30, 2021):

Thank You

More from Zensar Technologies Ltd.

Zensar Technologies Ltd. Interim / Quarterly Report 2021