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Zensar Technologies Ltd. Investor Presentation 2024
61559_rns_2024-04-25_6c8c2d13-8a36-4f93-b551-ef97bae78e52.pdf
Investor Presentation
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Date: April 25, 2024
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, Bandra Kurla Complex, Bandra (E), Mumbai 400 051
Fax: (022) 2272 2039/2272 3121
Scrip ID: ZENSARTECH Scrip Code: 504067
Fax: (022) 26598237/26598238
Symbol: ZENSARTECH Series: EQ
Subject: Press Release and Investor update & Analyst Presentation
Dear Sir/Madam,
In continuation to our intimation titled "Outcome of Board Meeting held on April 25, 2024" and pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith Press Release along with Investor update and Analyst presentation on the Financials Results of the Company for the period ended March 31, 2024.
You are requested to take note of the above.
Thanking you,
Yours sincerely, For Zensar Technologies Limited
Gaurav Tongia Company Secretary
Encl.: As above
www.zensar.com [email protected] Zensar Technologies Limited, Zensar Knowledge Park, Plot No. 4, MIDC Kharadi, Off Nagar Road, Pune 411014
Zensar reports 2.4% QoQ revenue growth and PAT growth of 7.6% for Q4FY24
Pune, India, April 25, 2024: Zensar Technologies, a leading experience engineering and technology solutions company, announced its consolidated financial results for its fourth quarter, ending March 31, 2024, of the fiscal year 2023-2024.
Financial Highlights:
- In Q4FY24, the company reported revenue of \$148.1M, sequential QoQ growth of 2.4% in reported currency and 2.0% in constant currency.
- For the full year FY24, the company reported services revenue of \$591.3M, yearly YoY growth of 1.0% in reported currency and 1.3% in constant currency.
- In Q4FY24, EBITDA was at 16.5%, quarterly YoY increase of 200 bps and sequential QoQ decline of 70 bps
- In Q4FY24, PAT stood at 14.1%, a quarterly YoY increase of 430 bps and sequential QoQ increase of 70 bps
- The company reported net cash of \$261.7M at the end of Q4FY24, QoQ growth of 5.4%
- US region reported a sequential QoQ services revenue growth of 4.3% in reported currency and 4.2% in constant currency.
- Europe region reported a sequential QoQ services revenue decline of 1.2% in reported currency and 3.1% in constant currency.
- South Africa reported a sequential QoQ services revenue decline of 2.3% in reported currency and 2.0% in constant currency.
- Banking and Financial Services reported a sequential QoQ services revenue growth of 2.5% in reported currency and 2.0% in constant currency.
- Manufacturing and Consumer Services reported a sequential QoQ service revenue growth of 3.0% in reported currency and 2.3% in constant currency.
- Hitech reported a sequential QoQ services revenue growth of 0.8% in reported currency and 0.7% in constant currency.
- Healthcare and Life Sciences reported a sequential QoQ services revenue growth of 3.6% in reported currency and 3.5% in constant currency.
Manish Tandon, CEO and Managing Director, Zensar, said, "Sequential growth across all our verticals is a testimony of our robust strategy and our bias towards execution excellence. Our expertise in managing digital products, experiences, and engagement for our clients makes us a preferred partner of choice. We moved strength to strength in our client centricity journey by achieving our best customer experience score ever in FY24.
We expanded our market reach with the help of our diversified service offerings. We continue to focus on client and employee satisfaction as our primary pillars of success. Our results give us the confidence to continue strategic investments in our service lines and enhance our capabilities in new age technologies such as Gen AI to foster innovation and deliver growth."
Sachin Zute, CFO, Zensar, commenting on the FY24 performance, said, "We have achieved strong financial results for FY'24 owing to our focused efforts towards operational excellence & margin improvement tracks which helped us improve our EBITDA by 640 bps to 17.8% and PAT by 690 bps to 13.6% on YoY basis. Our cash stood at \$261.7M and we further improved our DSO to 73 days at the end of FY'24. We continue to have strong momentum in our order book which grew by 22% YOY and stood at \$698M for the year.
For Q4FY24, our reported revenue is \$148.1M growth of 2.4% sequentially and 2.0% in constant currency. EBITDA margin for Q4 stood at 16.5% which is above our guided range."
Significant Wins in Q4FY24:
- Providing Data Engineering and Security solution for one of the largest digital communication conglomerate
- Modernizing Mainframe through our Digital Foundation Services for one of the largest retailers in South Africa
-
Enterprise Application Consultant for Multinational banking and financial services provider
-
Implementing Enterprise Service Application Platform for injectable development and manufacturing company
- Building a global partner marketing SME centre of excellence via harnessing our Customer Experience for a Multinational Technology Company
Awards and Recognitions in Q4FY24:
- Zensar's commitment to employee training was recognized with a 2024 Training APEX Award, highlighting its excellence in development practices.
- Zensar is a Top Employer 2024 in South Africa, recognized for its top-notch employee experience and regional leadership.
- Zensar's experience-led engineering and engagement services have propelled them to become a Top 15 Sourcing Standout according to ISG, showcasing its impressive global growth.
About Zensar (www.zensar.com)
We conceptualize, build, and manage digital products through experience design, data engineering, and advanced analytics for 145+ global clients. Our solutions leverage industry-leading platforms and help clients be competitive, agile, and disruptive as they navigate transformational changes with velocity. With headquarters in Pune, India, our 10,300+ employees work across 30+ locations, including San Jose, Seattle, Princeton, Cape Town, London, Singapore, and Mexico City.
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/ZensarTech/ 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 US\$ 4.7 billion. 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:
| Media Contact |
|---|
| Sunanda Jayaseelan |
| Public Relations |
| Zensar Technologies |
| [email protected] |
Safe Harbor
Certain statements in this release concerning our future prospects are forward-looking statements that 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 customers 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 pandemics 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, and general global operations and may also impact the success of companies in which we have made strategic investments, demand for the 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.
Zensar reports 2.4% QoQ revenue growth and PAT growth of 7.6% for Q4FY24
Pune, India, April 25, 2024: Zensar Technologies, a leading experience engineering and technology solutions company, announced its consolidated financial results for its fourth quarter, ending March 31, 2024, of the fiscal year 2023-2024.
Financial Highlights:
- In Q4FY24, the company reported revenue of \$148.1M, sequential QoQ growth of 2.4% in reported currency and 2.0% in constant currency.
- For the full year FY24, the company reported services revenue of \$591.3M, yearly YoY growth of 1.0% in reported currency and 1.3% in constant currency.
- In Q4FY24, EBITDA was at 16.5%, quarterly YoY increase of 200 bps and sequential QoQ decline of 70 bps
- In Q4FY24, PAT stood at 14.1%, a quarterly YoY increase of 430 bps and sequential QoQ increase of 70 bps
- The company reported net cash of \$261.7M at the end of Q4FY24, QoQ growth of 5.4%
- US region reported a sequential QoQ services revenue growth of 4.3% in reported currency and 4.2% in constant currency.
- Europe region reported a sequential QoQ services revenue decline of 1.2% in reported currency and 3.1% in constant currency.
- South Africa reported a sequential QoQ services revenue decline of 2.3% in reported currency and 2.0% in constant currency.
- Banking and Financial Services reported a sequential QoQ services revenue growth of 2.5% in reported currency and 2.0% in constant currency.
- Manufacturing and Consumer Services reported a sequential QoQ service revenue growth of 3.0% in reported currency and 2.3% in constant currency.
- Hitech reported a sequential QoQ services revenue growth of 0.8% in reported currency and 0.7% in constant currency.
- Healthcare and Life Sciences reported a sequential QoQ services revenue growth of 3.6% in reported currency and 3.5% in constant currency.
Manish Tandon, CEO and Managing Director, Zensar, said, "Sequential growth across all our verticals is a testimony of our robust strategy and our bias towards execution excellence. Our expertise in managing digital products, experiences, and engagement for our clients makes us a preferred partner of choice. We moved strength to strength in our client centricity journey by achieving our best customer experience score ever in FY24.
We expanded our market reach with the help of our diversified service offerings. We continue to focus on client and employee satisfaction as our primary pillars of success. Our results give us the confidence to continue strategic investments in our service lines and enhance our capabilities in new age technologies such as Gen AI to foster innovation and deliver growth."
Sachin Zute, CFO, Zensar, commenting on the FY24 performance, said, "We have achieved strong financial results for FY'24 owing to our focused efforts towards operational excellence & margin improvement tracks which helped us improve our EBITDA by 640 bps to 17.8% and PAT by 690 bps to 13.6% on YoY basis. Our cash stood at \$261.7M and we further improved our DSO to 73 days at the end of FY'24. We continue to have strong momentum in our order book which grew by 22% YOY and stood at \$698M for the year.
For Q4FY24, our reported revenue is \$148.1M grew by 2.4% sequentially and 2.0% in constant currency. EBITDA margin for Q4 stood at 16.5% which is above our guided range."
Significant Wins in Q4FY24:
• Providing Data Engineering and Security solution for one of the largest digital communication conglomerate
zensar
Analyst Presentation
Quarter ending March 31, 2024 Zensar Technologies Ltd.
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 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.
| 71 | ||||||
|---|---|---|---|---|---|---|
| HTE | BFSI | MCS | HLS | USA | UK/EU | South Africa |
| 0.7% | 2.0% | 2.3% | 3.5% | 4.2% | $-3.1%$ | $-2.0%$ |
| QoQ cc | QoQ cc | QoQ cc | QoQ cc | QoQ cc | QoQ cc | QoQ cc |
| $-14.7%$ | 8.7% | 13.3% | $-5.0%$ | $-2.6%$ | 11.3% | 9.3% |
| YoY cc | YoY cc | YoY cc | YoY cc | YoY cc | YoY cc | YoY cc |
| 25.5% | 38.6% | 26.3% | 9.5% | 67.4% | 20.7% | 12.0% |
| Q4 FY24 revenue | Q4 FY24 revenue | Q4 FY24 revenue | Q4 FY24 revenue | Q4 FY24 revenue | Q4 FY24 revenue | Q4 FY24 revenue |
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Win momentum continues: Notable projects
Delivered end to end Data Engineering and Security solution for one of the largest digital communication conglomerate
Implemented Service Now Platform for an injectable development and manufacturing company
Enterprise Application consultation for a multinational banking and financial services provider
Supporting core business operations for one of the intergovernmental organizations to cover all their tech landscape
Mainframe modernization for one of the largest retailer in South Africa
Build a global partner marketing SME center of excellence, harnessing our global infrastructure and expertise for a multinational tech company
Case studies: Next-generation services bring business value
Unleashing Modern Data Warehousing for US based Insurance provider
The client encountered challenges in diverse data integration, risk assessment complexities, and demands for market intelligence while balancing data storage and continuous integration, alongside replication and disaster recovery. We crafted a cloud-based data-driven modernization roadmap, setting the stage for the client's digital evolution. Collaborated closely with client to engineer a futuristic data warehouse platform using microservices on Google Kubernetes Engine, addressing unique challenges. Reduced costs by 35%, enabling Direct-to-
$(D2C)$ Consumer capabilities. Increased operational efficiency Distribution across Centers/Warehouses with simplified integration through automations.
Global Application Management Service for a mobility services company
Enhanced Customer Experience for a Multinational E-Commerce Company
Our customer is one the world's tech-enabled. global mobility company. It has divested from Parent organization & required to quickly establish Steady State BAU operations for new Cloud applications across SAP, Replicon, M-Files and their own website and SharePoint instances. Zensar provided them steady day 1 operations support with minimum Transition in a highly restrictive TSA environment.
We supported their complete 100% Cloud first environment with application portfolio including S/4HC, Ariba, Concur, Replicon and other non-SAP applications. Zensar currently provides service coverage across 31 countries 24x7. Within span of 1-year reduced ticket counts by 15% and MTTR by 5%
Client's objective was to boost brand awareness and provide consumers with a deeper understanding of the Product's features and their ecosystem. We created an eye-catching and cohesive system for their retail environments across Canada, the United States, and Mexico. We produced four engagement videos that encompassed the entire product line and unified their ecosystem. Additionally, we designed a line of Point of Sale materials that elevated the current in-store experience.
A phased deployment approach was adopted, and we delivered around 31% reduction in testing effort via 100% regression automation in South Africa & AR countries for Trade, MFA and Corporate Actions.
Leadership structure
Vivek Ranjan Sr VP & CHRO
Vijayasimha Alilughatta Chief Operating Officer
Manish Tandon CEO and MD
Sachin Zute Sr VP & CFO
Chaitanya Rajebahadur
Exec VP & Head Manufacturing
and Consumer Services, and
Europe
Harish Lala Exec VP & Head - Hi-tech Engineering and Africa
Anup Rege Sr VP & Chief Business Officer-Experience Services, and Brand and Communications
Pratik Maroo Head-Healthcare and Life Sciences
Rajat Sharma Sr VP & Head -Growth & Platforms
Nachiketa Mitra Exec VP & Head - Banking and Financial Services
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RPG Group
Update
Thank You
An &>RPG Company
- Modernizing Mainframe through our Digital Foundation Services for one of the largest retailers in South Africa
- Enterprise Application Consultant for Multinational banking and financial services provider
- Implementing Enterprise Service Application Platform for injectable development and manufacturing company
- Building a global partner marketing SME centre of excellence via harnessing our Customer Experience for a Multinational Technology Company
Awards and Recognitions in Q4FY24:
- Zensar's commitment to employee training was recognized with a 2024 Training APEX Award, highlighting its excellence in development practices.
- Zensar is a Top Employer 2024 in South Africa, recognized for its top-notch employee experience and regional leadership.
- Zensar's experience-led engineering and engagement services have propelled them to become a Top 15 Sourcing Standout according to ISG, showcasing its impressive global growth.
Q4FY24 Revenue and Profitability snapshot:
| Q4FY24 | Growth | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Particulars | Q-o-Q | Y-o-Y | |||||||
| USD Mn | INR Mn | USD | INR | CC | USD | INR | CC | ||
| Revenue | 148.1 | 12,297 | 2.4% | 2.1% | 2.0% | 0.5% | 1.4% | 0.4% | |
| EBITDA | 24.5 | 2,031 | -1.9% | -2.2% | 14.5% | 15.5% | |||
| EBIT | 21.6 | 1,793 | 2.0% | 1.6% | 26.4% | 27.4% | |||
| PAT | 20.9 | 1,733 | 7.6% | 7.2% | 44.2% | 45.4% |
Performance Highlights:
Income Statement (USD Mn)
| Income Statement (USD Mn) | Q4 FY 23 | Q3 FY 24 | Q4 FY 24 | FY 23 | FY 24 |
|---|---|---|---|---|---|
| Operating revenue | 147.5 | 144.7 | 148.1 | 604.2 | 592.3 |
| Sequential Growth | 1.1% | -3.7% | 2.4% | ||
| Year-Over-Year Growth | -3.7% | -0.8% | 0.5% | 6.1% | -2.0% |
| Cost of revenue | 100.4 | 99.7 | 102.7 | 436.6 | 404.0 |
| Gross profit | 47.1 | 45.0 | 45.4 | 167.6 | 188.3 |
| Gross profit % of revenue | 31.9% | 31.1% | 30.6% | 27.7% | 31.8% |
| Sequential Growth | 17.9% | -5.7% | 0.9% | ||
| Year-Over-Year Growth | 2.0% | 12.7% | -3.5% | -5.5% | 12.3% |
| Sales and marketing expenses | 11.4 | 9.3 | 9.0 | 43.6 | 36.2 |
| General and administration expenses | 14.3 | 10.7 | 11.9 | 55.6 | 46.9 |
| Operating expenses | 25.7 | 20.0 | 20.9 | 99.2 | 83.0 |
| % of revenue | 17.4% | 13.9% | 14.1% | 16.4% | 14.0% |
| Earnings before interest, tax, depreciation, and amortization | |||||
| (EBITDA) | 21.4 | 24.9 | 24.5 | 68.5 | 105.3 |
| EBITDA % of revenue | 14.5% | 17.2% | 16.5% | 11.3% | 17.8% |
| Sequential Growth | 30.1% | -10.6% | -1.9% | ||
| Year-Over-Year Growth | -1.2% | 51.8% | 14.5% | -22.2% | 53.8% |
| Depreciation and amortization | 4.3 | 3.7 | 2.9 | 22.9 | 16.2 |
| Earnings before interest and tax (EBIT) | 17.1 | 21.2 | 21.6 | 45.6 | 89.1 |
| EBIT % of revenue | 11.6% | 14.6% | 14.6% | 7.5% | 15.0% |
| Sequential Growth | 64.9% | -9.7% | 2.0% | ||
| Year-Over-Year Growth | 12.2% | 104.4% | 26.4% | -27.9% | 95.4% |
| Interest | 0.8 | 0.8 | 0.3 | 3.5 | 2.5 |
| Exchange Gain/(Loss) | 0.7 | 0.7 | -0.7 | 4.8 | 0.1 |
| Other income | 2.6 | 4.3 | 7.0 | 8.0 | 19.1 |
| Profit before tax | 19.6 | 25.5 | 27.6 | 54.9 | 105.8 |
| % of revenue | 13.3% | 17.6% | 18.6% | 9.1% | 17.9% |
| Sequential Growth | 55.9% | -6.3% | 8.2% | ||
| Year-Over-Year Growth | -17.3% | 102.3% | 40.3% | -28.7% | 92.7% |
| Provision for taxation | 5.1 | 6.1 | 6.7 | 14.4 | 25.5 |
| 40.5 | |||||
| Profit after tax (before minority interest) % of revenue |
14.5 9.8% |
19.4 13.4% |
20.9 14.1% |
6.7% | 80.3 13.6% |
| Profit after tax | 14.5 | 19.4 | 20.9 | 40.5 | 80.3 |
| Profit after tax % of revenue | 9.8% | 13.4% | 14.1% | 6.7% | 13.6% |
| Sequential Growth | 55.6% | -7.6% | 7.6% | ||
| Year-Over-Year Growth | -15.8% | 108.6% | 44.2% | -27.5% | 98.4% |
Income Statement (INR Mn)
| Income Statement (INR Mn) | Q4 FY 23 | Q3 FY 24 | Q4 FY 24 | FY 23 | FY 24 |
|---|---|---|---|---|---|
| Operating revenue | 12,127 | 12,041 | 12,297 | 48,482 | 49,019 |
| Sequential Growth | 1.3% | -3.0% | 2.1% | ||
| Year-Over-Year Growth | 5.1% | 0.5% | 1.4% | 14.2% | 1.1% |
| Cost of revenue | 8,254 | 8,296 | 8,529 | 35,000 | 33,433 |
| Gross profit | 3,872 | 3,745 | 3,768 | 13,482 27.8% |
15,586 31.8% |
| Gross profit % of revenue Sequential Growth |
31.9% 18.2% |
31.1% -5.1% |
30.6% 0.6% |
||
| Year-Over-Year Growth | 11.2% | 14.3% | -2.7% | 2.0% | 15.6% |
| Sales and marketing expenses | 981 | 777 | 746 | 3,546 | 2,992 |
| General and administration expenses | 1,133 | 892 | 992 | 4,414 | 3,876 |
| Operating expenses | 2,114 | 1,669 | 1,738 | 7,960 | 6,869 |
| % of revenue | 17.4% | 13.9% | 14.1% | 16.4% | 14.0% |
| Earnings before interest, tax, depreciation, and amortization | 1,758 | 2,076 | 2,031 | 5,523 | 8,717 |
| (EBITDA) | |||||
| EBITDA % of revenue | 14.5% | 17.2% | 16.5% | 11.4% | 17.8% |
| Sequential Growth | 30.4% | -10.1% | -2.2% | ||
| Year-Over-Year Growth | 7.0% | 54.0% | 15.5% | -15.9% | 57.9% |
| Depreciation and amortization | 351 | 312 | 237 | 1,830 | 1,338 |
| Earnings before interest and tax (EBIT) | 1,407 | 1,764 | 1,793 | 3,693 | 7,379 |
| EBIT % of revenue | 11.6% | 14.7% | 14.6% | 7.6% | 15.1% |
| Sequential Growth | 65.4% | -9.2% | 1.6% | ||
| Year-Over-Year Growth | 21.2% | 107.3% | 27.4% | -21.7% | 99.8% |
| Interest | 63 | 64 | 28 | 279 | 209 |
| Exchange Gain/(Loss) | 58 | 60 | -60 | 385 | 5 |
| Other income | 214 | 360 | 581 | 643 | 1,583 |
| Profit before tax | 1,616 | 2,121 | 2,286 | 4,441 | 8,758 |
| % of revenue | 13.3% | 17.6% | 18.6% | 9.2% | 17.9% |
| Sequential Growth | 56.2% | -5.7% | 7.8% | ||
| Year-Over-Year Growth | -10.0% | 105.0% | 41.5% | -22.6% | 97.2% |
| Provision for taxation | 424 | 504 | 553 | 1,165 | 2,108 |
| Profit after tax (before minority interest) | 1,192 | 1,617 | 1,733 | 3,275 | 6,650 |
| % of revenue | 9.8% | 13.4% | 14.1% | 6.8% | 13.6% |
| Profit after tax | 1,192 | 1,617 | 1,733 | 3,275 | 6,650 |
| Profit after tax % of revenue | 9.8% | 13.4% | 14.1% | 6.8% | 13.6% |
| Sequential Growth | 55.9% | -7.0% | 7.2% | ||
| Year-Over-Year Growth | -8.2% | 111.3% | 45.4% | -21.3% | 103.0% |
Other Metrics
| Other Metrics | Q4 FY 23 | Q3 FY 24 | Q4 FY 24 | FY 23 | FY 24 |
|---|---|---|---|---|---|
| Revenue By Service Offering (as % of Revenue) | |||||
| Digital Application Services | 82.6% | 81.5% | 81.6% | 81.4% | 81.6% |
| Application Services + Enterprise Application (SaaS) | 50.5% | 45.8% | 47.8% | 49.1% | 47.3% |
| Advanced Engineering Services | 14.8% | 17.6% | 15.9% | 13.7% | 16.4% |
| Experience Services | 8.7% | 9.4% | 10.0% | 9.6% | 9.3% |
| Data Engineering and Analytics | 8.6% | 8.6% | 7.8% | 8.9% | 8.6% |
| Digital Foundation Services | 17.4% | 18.5% | 18.4% | 18.6% | 18.4% |
| Revenue by Vertical (as % of Revenue) | |||||
| Hitech | 30.7% | 25.9% | 25.5% | 30.8% | 27.1% |
| Manufacturing & Consumer Services | 23.4% | 26.1% | 26.3% | 24.9% | 25.6% |
| Banking & Financial Services | 35.8% | 38.6% | 38.7% | 34.3% | 37.7% |
| Healthcare & Life Sciences | 10.1% | 9.4% | 9.5% | 10.0% | 9.6% |
| Revenue By Geographical Segment (as % of Revenue) | |||||
| US | 70.3% | 66.0% | 67.2% | 70.7% | 67.2% |
| Europe | 18.1% | 21.4% | 20.8% | 18.1% | 20.8% |
| Africa | 11.6% | 12.5% | 12.0% | 11.2% | 12.0% |
| Operating revenue (Constant Currency mn) | 146.5 | 145.4 | 147.6 | 628.0 | 594.3 |
| Sequential Growth | 0.4% | -3.2% | 2.0% | 10.3% | -1.6% |
| Year-Over-Year Growth | -0.3% | -1.3% | 0.4% | 10.3% | -1.6% |
| Constant Currency Growth By Vertical (QoQ %) | |||||
| Hitech | 5.3% | -8.0% | 0.7% | -2.0% | -13.8% |
| Manufacturing & Consumer Services | -4.6% | -1.9% | 2.4% | 5.9% | 0.2% |
| Banking & Financial Services | 2.7% | 0.1% | 2.3% | 29.5% | 9.3% |
| Healthcare & Life Sciences | -8.5% | -5.6% | 3.2% | 6.5% | -6.4% |
| Number of million dollar Clients (LTM Revenue) | |||||
| 1 Million dollar + | 84 | 84 | 85 | 84 | 85 |
| 5 Million dollar + | 29 | 32 | 31 | 29 | 31 |
| 10 Million dollar + | 14 | 14 | 14 | 14 | 14 |
| 20 Million dollar + | 4 | 4 | 4 | 4 | 4 |
zensar®
| Other Metrics | Q4 FY 23 | Q3 FY 24 | Q4 FY 24 | FY 23 | FY 24 |
|---|---|---|---|---|---|
| Revenue from top clients | |||||
| Revenue-top 5 clients | 34.3% | 29.2% | 28.3% | 33.2% | 30.7% |
| Revenue-top 10 clients | 46.1% | 40.6% | 40.8% | 44.6% | 41.8% |
| Revenue-top 20 clients | 61.4% | 57.5% | 57.2% | 60.8% | 58.3% |
| Number of active clients | 148 | 147 | 148 | 148 | 148 |
| Onsite:Offshore (as % of Revenue) | |||||
| Revenue mix | |||||
| Onsite | 53.6% | 50.4% | 50.0% | 56.1% | 50.9% |
| Offshore | 46.4% | 49.6% | 50.0% | 43.9% | 49.1% |
| Utilization (excluding Trainees) | |||||
| Utilization (excluding Trainees) | 81.4% | 80.7% | 83.7% | 81.4% | 83.7% |
| Headcount | |||||
| Total Headcount | 10,563 | 10,225 | 10,349 | 10,563 | 10,349 |
| Technical - Onsite | 2,141 | 2,074 | 2,078 | 2,141 | 2,078 |
| Technical - Offshore | 7,497 | 7,255 | 7,387 | 7,497 | 7,387 |
| Gross employees added during the period | 552 | 627 | 816 | 3,559 | 2,740 |
| % of women employees | 30.0% | 30.2% | 30.1% | 30.0% | 30.1% |
| Voluntary Attrition %(LTM) | 19.8% | 12.0% | 10.9% | 19.8% | 10.9% |
| Exchange Rates (Rupee Dollar Rate) | |||||
| Period Closing Rate | 82.2 | 83.2 | 83.4 | 82.2 | 83.4 |
| Period Average Rate | 82.2 | 83.2 | 83.0 | 80.3 | 82.8 |
| Accounts receivables (in days) | |||||
| Billed | 52 | 51 | 49 | 52 | 49 |
| Unbilled | 22 | 24 | 24 | 22 | 24 |
| Total | 74 | 75 | 73 | 74 | 73 |
| Summary of Cash and Cash Equivalents | |||||
| Balances with Banks | 88.6 | 96.3 | 86.8 | 88.6 | 86.8 |
| Investments | 112.9 | 152.0 | 174.9 | 112.9 | 174.9 |
| Cash and Cash Equivalents including investments | 201.5 | 248.3 | 261.7 | 201.5 | 261.7 |
| Debt (USD mn) | |||||
| Total Outstanding Hedges (In USD) | 173.7 | 313.7 | 340.2 | 173.7 | 340.2 |
About Zensar (www.zensar.com)
We conceptualize, build, and manage digital products through experience design, data engineering, and advanced analytics for 145+ global clients. Our solutions leverage industry-leading platforms and help clients be competitive, agile, and disruptive as they navigate transformational changes with velocity. With headquarters in Pune, India, our 10,300+ employees work across 30+ locations, including San Jose, Seattle, Princeton, Cape Town, London, Singapore, and Mexico City.
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/ZensarTech/ 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 US\$ 4.7 billion. 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:
| Media Contact | |
|---|---|
| Sunanda Jayaseelan | |
| Public Relations | |
| Zensar Technologies | |
| [email protected] |
Safe Harbor
Certain statements in this release concerning our future prospects are forward-looking statements that 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 customers 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 pandemics 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, and general global operations and may also impact the success of companies in which we have made strategic investments, demand for the 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.