In The Spotlight

Zensar’s PAT moves up 35% Y-O-Y in Q4

Company provides growth guidance for 2009-10 in spite of recessionary markets

Location: Pune, India | Date: 21/04/2009

Zensar Technologies, the leading global IT and BPO services provider has reported excellent year-on-year profit growth for the year ended 31st March, 2009.

Financial Highlights
Consolidated Results for the year ended 31st March, 2009 vis-à-vis last year

• Revenue was up from Rs 782.93 to Rs 908.08 Cr showing a 16% growth y-o-y
• Net Income grew from Rs 64.03 Cr to Rs 86.56 Cr showing a 35% growth y-o-y
• EPS up from Rs 26.73 to Rs 36.12 , 35% y-o-y growt

For the fourth quarter, revenue was up from Rs. 204.00 Cr to Rs 214.76 Cr as against same quarter last year, showing 5% growth. Net income was Rs 23.03 crores against Rs 21.54 for the same quarter last year.

Dr Ganesh Natarajan, Vice Chairman and MD, Zensar said, “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 derisking. Our portfolio of services has doubled in the last three years with over forty percent of current year revenues coming from new service areas like Business Intelligence, Remote Infrastructure Management and Consulting. We see the current economic crisis as a challenge as well as an opportunity for us to increase our focus on consulting led solutions and the domestic market.”

S Balasubramaniam, Company CFO said, “All our businesses and geographies are profitable and growing and we are confident that the growth in both revenues and profits will continue in the current fiscal year.”

Zensar was recently awarded the DHL-CNBC International Trade Award for Outstanding Exporter of the Year for the IT, ITES and Electronics category for the third consecutive year. The Company has also has been awarded the Emerging Business Applications Award for 2009 at the Oracle UK Partner Awards ceremony held recently in London. Oracle recognized Zensar’s continued success in delivering innovative solutions and for providing value to its customers using Oracle Applications and Technology. The Company has also seen a surge in its Enterprise Applications business and has added 50 new customers to its Oracle business. In the US, the Company has built success stories through green field projects using Oracle Business Accelerators which have been leveraged for faster implementation of enterprise applications and optimization of costs.

Nitin Parab, Executive Vice President and Head, Enterprise Application Services (EAS), Zensar Technologies said, “With over 1000 Oracle professionals and significant names in its client list, the Company is truly poised to be a Tier 1 player in the Oracle space. The Emerging Business Applications Award by Oracle is a validation of our sustained efforts towards providing business excellence to our customers. We have a strategic partnership with Oracle and this further strengthens our relationship.”

Zensar’s focus on innovation has resulted in the launch of the strategic service Impact Sourcing, which is a highly focused offering to help clients formulate and implement strategies to achieve optimization across the organization. The Impact Sourcing 10/10 formula means savings of ten percent in any chosen process within ten months of engagement which has already been pilot tested and is all set to provide enormous value to all customers.

V. Balasubramanian, Executive Vice President and Head, Global Transformation Services (EMEIA) said, “We are reaffirming our commitment to the domestic market with focus on key segments of government, education, media & entertainment, healthcare and logistics in India by taking services such as Impact Sourcing and our various partnerships to service the sectors.”

Business Update:

• The Company has added 16 new customers during the quarter and 6 new customers in the year with a potential of becoming multi-million dollar accounts during the year, these include two UK based utility majors, another leading provider of share registration services from the UK, an insurance major from South Africa and from the US and a hospitality major from the US.
• The Company had 4684 employees as on 31st March, 2009. The attrition figures are down to single digits – the best ever reported in the Company so far.
• The Company has entered into a partnership with Twofour Media, renowned for its wide range of factual entertainment and lifestyle programming. The alliance sets growth strategies and products based on new media, across a wide range of platforms such as television, internet, radio and film.
• The Company inaugurated its third Global Delivery Centre in India and sixth in the world yesterday in Pune. The Centre will be the innovation hub for the Company which also has its Development Centres in Hyderabad in India, Slough in UK, San Jose in USA and Gdansk in Poland which are fully functional and have over 1000 professionals working out of these centres. All these centres work in truly collaborative frameworks using blueprints for developing and supporting global projects.

About Zensar Technologies (www.zensar.com)
Zensar Technologies is among the top 25 software services providers from India. Zensar is the world's first enterprise-wide SEI CMM Level 5 Company and was also later certified as a CMMI Level 5 Company with industry expertise that spans Retail, Manufacturing, Banking, Insurance and Utilities. Zensar has more than 4684 employees with sales and operations presence across US, UK, Germany, Sweden, Finland, Middle East, South Africa, Hong Kong, Singapore, Australia, Japan and China. The Company delivers comprehensive services in mission-critical applications, enterprise applications, e-business, BPO and Knowledge Services. The Company has developed tools and methodologies, including the proprietary Solution BluePrint (SBP), which enables its clients with innovative business solutions and a rapid ‘go-to-market’ capability. The Company supports Fortune 500 clients with software business solutions that help them compete in the digital economy.

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