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Zensar Technologies Ltd. Investor Presentation 2021

Aug 6, 2021

61559_rns_2021-08-06_40548dc2-df66-4dc3-825d-78234ce66b9b.pdf

Investor Presentation

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August 6, 2021

BSE Limited

Corporate Service Department, 1[st] Floor, P. J. Towers, Dalal Street, Mumbai 400 001

Fax: (022) 2272 2039/2272 3121

Scrip ID: ZENSARTECH Scrip Code: 504067

The National Stock Exchange of India Ltd. Exchange Plaza, 3[rd] floor, Plot No. C/1, ‘G’ block, Bandra Kurla Complex, Bandra (E), Mumbai 400 051 Fax: (022) 26598237/26598238

Symbol: ZENSARTECH Series: EQ

Sub: Disclosure under Regulation 30(6) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Dear Sir/Madam,

Pursuant to Regulation 30(6) read with Para A of Schedule III to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find below the details of the Analyst/Institutional Investors meet:

Date Particulars Location
August 7, 2021 Group of High Networth Individuals Audio/Video
Conference

Following presentations shall be referred, as have already been filed with the Stock Exchanges in past and attached herewith for ready reference. The discussion will be around information already in public domain:

  1. RPG Annual Investor Conference

  2. Q1FY22 Quarterly Investor Presentation

Kindly take the same on record.

Thanking you,

Yours faithfully,

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Zensar Technologies Limited, Zensar Knowledge Park, Plot No. 4, MIDC Kharadi, Off Nagar Road, Pune 411014

CIN: L72200PN1963PLCO12621 +(20) 6607 4000, 2700 4000 +(20) 6605 7888

www.zensar.com [email protected]

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Zensar Technologies

RPG Annual Investor Conference Presentation

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Company

An

1 | Confidential | www.zensar.com | © Zensar Technologies 2021

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Strong Company Culture

Solid foundation of capabilities and rich ethos

Living Digital

Early adopter of digital. Key processes and functions are mobile-first and cloud-first

Who we are

We are a young digital native firm on the path to being a cloud-native, experience-led engineering organization.

Integrated Digital Experience

Evolved service line supported by targeted mergers and acquisitions

Strong War Chest

EBITDA (29.9%YoY ), strong cash position ($160M+), zero debt

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2 | Confidential | www.zensar.com | © Zensar Technologies 2021

How the market ecosystem is evolving

1

Digital-led acceleration

Accelerated adoption of cloud, big data, and digital platforms Focus on security and data protection

Digital transformation focusing on enterprise core

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2

Disrupt to stay relevant

3

Follow the money

Tech spend driven across CIO/CDO/CMO organizations

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4

New-age digital-native competition with high speed-to-market

Redefining business models

Future of work

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High demand leading to a shortage of digital and engineering skills

Hybrid model of working

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3 | Confidential | www.zensar.com | © Zensar Technologies 2021

How we are aligning to the future

How the market Imperatives is evolving for Zensar Digital-led acceleration Experience-led engineering services Drive speed and efficiency for clients Disrupt to stay relevant High-resolution services in experience-toengineering-to-infrastructure Follow the money Strengthen capabilities with hyper-scalers Future of work Expand talent pool, skills transformation

Strategic Growth Opportunities We will organize company resources, investments and alliances around these focus areas of market opportunity: Experience Services Advanced Engineering Services Data Engineering and Analytics Application Services Foundation Services

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4 | Confidential | www.zensar.com | © Zensar Technologies 2021

Our Strategic Growth Opportunities (SGOs)

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Experience Services

Seamless delivery of strategy, design, prototype and production of customer experience (CX) platforms and products

Advanced Engineering Services

Cloud-native and fullstack, high-velocity advanced engineering services to address business-critical digital needs

Data Engineering and Analytics

Expert services addressing full gamut of increasingly cloud-based big data needs for customers, advanced analytics, and AI/ML services

Application Services

Full-lifecycle services addressing application management needs of larger organizations

Foundation Services

Help enterprises design, create, and maintain their infrastructure. Provide an interconnected foundation for digital transformation

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Within each SGO, we will have multiple playbooks which act as service propositions and solutions targeted towards specific customer needs and market opportunities

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5 | Confidential | www.zensar.com | © Zensar Technologies 2021

We are doubling down on our key verticals

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Vertical Hi-Tech and Banking, Financial Consumer Services
Manufacturing Services, Insurance
(BFSI)
Proliferating Industry 4.0 in Micro-vertical focus, Driving technology
manufacturing and target Tier-1 clients, lead innovations and digital
Focus
helping tech leaders in with domain capabilities, solutions for organizations
implementing as-a- new client acquisition led focused on the consumer
service models by experience, digital
engineering, analytics
Large capital markets firm,
Large aerospace OEM, Leading consumer
Representative Global science and Large global assets servicing entertainment platform,
Wins firm, Large global bank
chemical company global consumer giant
6 | Confidential | www.zensar.com | © Zensar Technologies 2021
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…and continuing to grow our primary markets.

US

  • 69.6% of revenue*

  • Verticalized go-to-market

  • Roster of large-cap customers

  • Strong field teams

  • Nearshore delivery in Mexico

UK & EU

  • 18.6% of revenue

  • Experience & Engineering led new logo wins

  • Select expansion into EU for customer acquisition and nearshore delivery

South Africa

  • 11.8% of revenue

  • Leading market presence with top-tier customers across verticals

  • Track-record of digital

  • innovation and engineering

*** Revenue contribution based on Q4FY21 results**

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We are sharpening our focus With this approach we are delivering real customer impact and our market traction is positive*

  • While we continue to build upon our current momentum in Application Services and Digital Foundation Services

Experience Services

We continue to combine design, strategy, experience, marketing and engineering

Impact: Rapid digital product delivery and launch, CX transformation

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Advanced Engineering Services

We continue to build high velocity cloudnative engineering teams

Impact: Transformed enterprise agility

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Data Engineering and Analytics

We continue to integrate data capability, and connect engineering with experience

Impact: Integrated data capability to drive transformation

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| Confidential | www.zensar.com | © Zensar Technologies 2021

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Customer Story: Experience Services

Re-engineering customer experience for leading media conglomerate

Our client’s vision was to create the most immersive and engaging digital experience in the UK. Deeply embedded within their product, technology and brand teams, our role was to define the customer strategy and bring a brand-new digital experience to life in a customer-centric way to drive increased experiences and conversion

Strategic alignment across all lines of business

Uplift in key product journeys

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9 | Confidential | www.zensar.com | © Zensar Technologies 2021

Customer Story: Experience Services

The first virtual, global auction of its kind

$46 million in sales with seven artist records

We created an auction experience— from show flow, technology, and communications to on-air and in-room design. In the end, the event not only achieved a financially successful auction of unprecedented proportions but also established this historic art institution as innovators in a centuries old marketplace

Click to add text Click to add text

Four global locations bidding simultaneously, coordinated across three channels

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10 | Confidential | www.zensar.com | © Zensar Technologies 2021

Customer Story: Advanced Engineering Services

40%

increase in order allocations with optimized algorithms

Enhanced picking productivity by 15%

1.5M orders in a single peak day

Department store supply chain transformation

We helped convert a major retailer’s legacy system to a cloud warehouse management system using a combination of existing and customized IPs. The result created significant improvements to their operations at scale and gave them a new business model and a platform that is ready for the future

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15-Jun-21

Customer Story: Advanced Engineering Services

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25% increase in efficiency

30% increase in savings

25% reduction in drop-off rates

Experience-led digital transformation at scale

We partnered with a multinational financial services corporation to implement a single, global CXP platform. The product, technology and business teams along with partners were able to leverage the implemented low code solutions and reusable components to improve their go-to-market speed

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Customer Story: Experience Design & Engineering

Reimagining the web experience for a leading South African bank

We improved our client’s customer experience. Working alongside the client and leading with our multidisciplinary teams, we upskilled and improved ways of working, which enabled the creation of a modern agile digital product engineering organization, adopting an approach to rapidly launch features and maximize business value

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25%
increase in
returning
customers
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70%
Customers
digitally onboarded
and serviced
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13 | Confidential | www.zensar.com | © Zensar Technologies 2021

Customer Story: Experience Design & Engineering

Designed an immersive world of gaming experience

We built one of the largest client specific Gaming studios for an online gaming software development leader and re-engineered the gaming engine through AI/ML technologies to rapidly launch enhanced features and augment player experience

50+ games developed and supported 100+ games across geographies

30% Reduction in development cost per game

14 | Confidential | www.zensar.com | © Zensar Technologies 2021

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Mobile network service provider

Sentiment Analytics and ML algorithms enabling faster customer service and improved experience, resulting in significant cost savings

Data Engineering and Analytics Case Studies

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Global intergovernmental organization Conversational analytics for grants management and reporting resulted in 99% award utilization with 30% faster deployment for field positions

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Our operationalizing strategy We will execute our strategy by focusing on four key areas that provide operational thrust.

Sales transformation 1 for growth

Invest in a demand generation engine, build strong sales muscle, revamp hunting function to drive new customers

Partnerships with leading product 2 and platform companies

Drive 360 ° relationships with leading product and platform companies, continue to invest in partnerships with hyperscalers

Talent transformation Mergers and 3 (cloud, data, engineering) 4 acquisitions

Modernize company competency with a focus to enhance internal talent skills, expand talent pool and transform hiring

SGO driven M&A – Tuck-in acquisitions to augment specific growth areas

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16 | Confidential | www.zensar.com | © Zensar Technologies 2021

Leadership augmentation

Onboarded Global Head of Consumer Services and Global Head of Salesforce practice

Talent transformation

Infusing talent and building capability in Advanced Engineering Services Strengthening talent pool by future skilling

Building on our strategy We are sharpening our capabilities and investments around our SGOs.

Mergers and acquisitions

Recent acquisition of M3bi augments Zensar’s momentum in data engineering, analytics and advanced engineering services

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17 | Confidential | www.zensar.com | © Zensar Technologies 2021

Our path forward

We will realize our growth and value for an expanded customer base by crystallizing our services and offerings and transforming how we target opportunities.

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Crystallize and rewire core capabilities and services

Transform sales enablement to accelerate deal wins

Expand and enable new customer acquisitions

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18 | Confidential | www.zensar.com | © Zensar Technologies 2021

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Thank you

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| Confidential | www.zensar.com | © Zensar Technologies 2021

19

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

3

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

4

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

5

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

www.zensar.com | © Zensar Technologies 2021

6

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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www.zensar.com | © Zensar Technologies 2021

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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

www.zensar.com | © Zensar Technologies 2021

8

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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www.zensar.com | © Zensar Technologies 2021

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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

www.zensar.com | © Zensar Technologies 2021

10

RPG Overview

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www.zensar.com | © Zensar Technologies 2021

26-07-2021

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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

www.zensar.com | © Zensar Technologies 2021

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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

www.zensar.com | © Zensar Technologies 2021

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Thank You

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www.zensar.com | © Zensar Technologies 2021

www.zensar.com | © Zensar Technologies 2021

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