In The Spotlight

Zensar Q4 net rises 6.9% on biz from new service areas

2009-04-22, Business Standard

Pune-based IT services provider Zensar Technologies Ltd has reported a 6.9 per cent increase in net profit for the March quarter partly helped by business from new service areas.

For the quarter, net income was Rs 23.03 crore compared with Rs 21.54 crore in the year-ago quarter. Revenues increased 5 per cent to Rs 214.76 crore (Rs 204.00 crore).

“The continuing success of Zensar in spite of a tough economic environment is a result of our emphasis on innovation, and geography, segment and service de-risking,” said Mr. Ganesh Natarajan, Vice-Chairman and Managing Director, Zensar.

Shares of the company rose 9.95 per cent to Rs 109.35 on Tuesday on the BSE.

Revenues declined 13.9 per cent sequentially from Rs 249.43 in the previous quarter. During the third quarter, net profit was Rs 20.22 crore. For fiscal 2009, the company reported net profit of Rs 86.56 crore (Rs 64.03 crore), which is an increase of 35 per cent. Revenues increased 16 per cent to Rs 908.08 crore (Rs 782.93 crore).

Zensar’s portfolio of services has doubled in the last three years with over 40 per cent of current year revenues coming from new service areas such as business intelligence, remote infrastructure management and consulting, Mr Ganesh Natarajan added. Zensar added 16 new customers during the quarter, of whom six have the potential of becoming multi-million dollar accounts, the company said in a statement.

Zensar had 4,684 employees as on March 31, and attrition figures are down to single digits, the best ever reported in the company so far, it said. The company said it recently inaugurated a new delivery centre in Pune, which is the third in the city and the sixth worldwide.

Parul Vaidya - Corporate Innovation Group, Zensar Technologies,
Tel - +91-20-66057852/ 9822684686