In The Spotlight Zensar's PAT for Q3 moves up 61 % Y-O-Y21st January 2010 | I-Newswire.com
Pune: Ganesh Natarajan, Zensar Technologies, the leading global IT and BPO services provider has reported excellent year-on-year profit growth for the quarter ended 31st December, 2009.
Financial Highlights:
Consolidated Results for the quarter ended 31st December, 2009 vis-à-vis last year
Profits have grown from Rs 20.22 Cr to Rs 32.50 Cr showing a 61 % growth y-o-y
Revenue for nine months of the current fiscal (31st December 2009) has been Rs 720.11 Cr (Rs 693.32 Cr)
EPS up from Rs 8.44 to Rs 13.55, 61% y-o-y growth
Dr. Ganesh Natarajan, Vice Chairman and MD, Zensar said, “We have crossed Rs 100 Cr in PAT in nine months and continue to do well in spite of currency fluctuations and sluggish market conditions. In this quarter we have added a number of marquee customers with five new wins in the Oracle Applications space in the US. With a good pipeline in all markets and robust IT-BPO synergies, we are confident of exceeding a PAT of Rs.125 Cr this year.”
Zensar won the Emerging Business Applications Award for 2009 at the Oracle UK Partner Awards in London earlier this year. In the US, the Company has built success stories through Greenfield projects using Oracle Business Accelerators which have been leveraged for faster implementation of enterprise applications and optimization of costs.
The Company has reaffirmed its commitment to the domestic market with focus on key segments of government, education, media & entertainment, healthcare and logistics in India by launching new offerings and partnerships to service the sectors. The Company has also been recently empanelled as IT consultant for the nationwide Restructured Accelerated Power Development and Reforms Programme (R-APDRP) launched by the Ministry of Power, Govt. of India in the XI Five year Plan to prevent frequent outages, and transmission and distribution losses due to theft and unmetered supply. The company has added 25 new customers and 259 new associates this quarter.
and CEO, Zensar Technologies, the Information Technology (IT) business unit of the RPG group, doesn’t complain about the recent downturn.
The mid-cap IT company’s top line has been growing in double digits. During 2008-09, when the IT industry was in the doldrums, Zensar’s top line grew 16 percent and net profit was up 35 percent on a year-on-year basis. This at a time when the overall net profit of mid-cap IT companies declined 14.3 percent.
In the past seven quarters, Zensar’s net profit grew substantially higher than frontline IT companies, said analysts. According to a recent ShareKhan analysis, the company’s revenue, EBITDA (earnings before interest, tax, depreciation and amortisation) and net profit grew at a compounded quarterly growth rate (CQGR) of 3.5, 7.7 and 9.9 percent, respectively, over the period.
That was reason enough for the Harvard Business School to prepare a case study on the company’s business model — how it sustained during the slowdown.
Natarajan, who was brought in when Zensar was deep in the red in 2001, said the reason for the smart turnaround was due to the initial investment the company had made on people, cost efficiencies and geographical expansion.
The “On the revenue side, one has to adapt to change. We entered three new verticals right in the midst of slowdown — utilities, media and entertainment, and education — and they are all doing well. The other aspect is non-linear focus, cost efficiencies and delegation of work,” he said. Parul Vaidya - Market Innovation Group, Zensar Technologies,
Tel - +91-20-66057852/ 9822684686 |
