Zensar reports 3.8% sequential quarter revenue growth in Q2 FY 18

Digital services continue to grow and are at 36.3% of revenue

Pune, India, November 3, 2017: Zensar Technologies, a leading digital solutions and technology services company that specialises in partnering with global organisations across industries on their Digital transformation journey, announced its audited consolidated financial results for its second Quarter ending September 30, 2017 of the fiscal year 2017-2018.

Digital services continue to grow and are at 36.3% of revenue

Financial Highlights: The Company reported quarter on quarter revenue growth of 3.8% at close of Q2 FY18 from 114.3 USD M to 118.6 USD M. The PAT for the quarter grew by 33.1% from 7.3 USD M to 9.7 USD M. Digital services continue to grow and have moved up 5.3% sequentially from a 36.3% of revenue contribution in Q1 FY 18 to 36.8% of Q2 FY 18 revenue.

Sandeep Kishore, Chief Executive Officer and Managing Director, Zensar Technologies said, “The Company continues to have a razor sharp focus on its Digital business and has kept up the growth momentum in the second Quarter of fiscal year 2017-2018. Zensar’s proprietary Return on Digital® platform with its new suite of innovative solutions, has continued to help the company leverage new wins, with half of the quantum of wins in Digital services.” 

“Key regions and industries have performed well this Quarter and we continue to retain focus on our strategic thrust areas”, Sandeep added.

Manoj Jaiswal, Chief Financial Officer, said, "With Zensar now ‘Living Digital’ internally as well, our ability to manage the business effectively has improved substantially. This coupled with our significant focus on cost and productivity improvement has not only helped us negate the impact of wage increase but has also helped us improve our gross margins by 118 bps.”

Significant Wins Q2 FY 18: 
The Company has continued to report significant new wins, with 50% of new clients added in Digital services. Significant new wins are listed here: 
 
A. Digital Wins
 
  • Experience Design services: for one of the leaders in Health Cash plans industry in the UK Market; a global leader in online trading; a company that focused on the creation of multimedia and creativity software products, and more recently in rich internet application software development; a research and insights services deal for a UK based company which operates two significant vehicle rental brands in Europe, Middle East, Africa and Asia.
  • Digital Commerce deals for retail enterprises: a multi-year, multi-million deal for the largest specialty retailer of men's apparel, with operations throughout the US and in London; a chain of beauty stores in the United States which carries cosmetics and skincare brands, men's and women's fragrances, and haircare products; an American corporation based in Wisconsin that formulates and packages synthetic lubricants and filters.
  • Analytics: a multi-million deal with an American multinational technology conglomerate that develops, manufactures and sells networking hardware, telecommunications equipment and other high-technology services and products; an American energy company that designs and manufactures crystalline silicon photovoltaic cells and solar panels.
  • Automation: a Robotic Process Automation deal for a South African financial services group headquartered in Cape Town, 'The Vinci™' automation deal for one of North America's leading airlines.
  • Digital Testing: a multi-million, multi-year deal for one of the leaders in the financial solutions industry in Africa; a multi-year Agile Testing deal for one of the industry leaders in risk mitigation; a digital testing deal for an investment advisory, portfolio management, securities company.

B. Traditional Services Wins 

  • An Oracle EBS deal for an American company headquartered in New Jersey that provides and services voice communication systems for financial companies; an Oracle EBS deal for an American Company that manufactures and distributes analytical instruments and reagents used to test the quality of water and other liquid solutions, an Oracle EBS deal for an American animation studio  based in Glendale, California which produces animated feature films, television programs and online virtual games, an Oracle EBS deal for a supplier of critical systems and components to the aerospace and defence markets
  • An application maintenance deal for one of the world's biggest developers and suppliers of online Microgaming based in South Africa; an Application Support and Enhancement deal for an international investment, savings, insurance, and banking group in South Africa; an application support and maintenance deal for a non-profit organisation in the US specialising in alternative dispute resolution
  • SAP implementation for a global leader in pharmaceutical manufacturing; an SAP implementation deal for a leading supplier of biopharmaceutical and human plasma products

C. Corporate Excellence in Q2 FY 18:  

  • Zensar named in ISG Provider Lens™ Quadrant Report - 2017 ISG Application Development and Maintenance Services Report
  • Zensar named Major Contender in Everest Group Workplace Services – Market Trends and PEAK Matrix™ Assessment
  • Zensar named in new ISG research Digital Workplace Services Archetype Report
  • Zensar named in Everest Group IT Infrastructure Automation – Market Update and PEAK Matrix™ Assessment for Solutions (Focus on IT Service Providers)
  • Zensar named in Gartner Digital Commerce Vendor Guide 
  • Zensar mentioned in Gartner Competitive Landscape : Partnering with Third Party Maintenance Providers for Data Center and Network Maintenance Cost Optimization 
  • Zensar launches next generation Cloud management offerings with Cisco’s Cloud Center Capabilities

Note: All numbers are as per the Ind-AS reporting standard

Q2 FY 17-18 Revenue and profitability snapshot (US$)

 

Particulars

Q2 FY18

Growth

 

USD Mn

INR Cr

Q-o-Q

Y-o-Y

 

USD

INR

CC

USD

INR

CC

Revenue

$ 118.6

₹ 762.6

3.8%

3.5%

3.3%

3.1%

(1.0%)

2.3%

EBITDA

$ 14.0

₹ 90.2

19.2%

18.9%

 

(16.9%)

(20.2%)

 

EBIT

$ 11.4

₹ 73.0

26.7%

26.4%

 

(24.0%)

(27.0%)

 

PAT

$ 9.7

₹ 62.6

33.1%

32.8%

 

(7.3%)

(11.0%)

 

 

Q2 FY 17-18 Revenue Growth in Constant Currency

 

Particulars

Segments

Q2 FY17-18

QoQ

Consolidated

For the Company

3.3%

Geography

US

0.5%

Europe

3.3%

Africa

8.7%

RoW

67.7%

Services

Application Management Services

5.2%

Infrastructure Management

(5.1%)

Maintenance

(7.3%)

Services

(3.6%)

Industry

Manufacturing

3.4%

Retail and Consumer Services

5.4%

Financial Services

5.5%

Emerging

(21.5%)

 

About Zensar(www.zensar.com)

Zensar is a leading digital solutions and technology services company that specialises in partnering with global organisations across industries on their Digital Transformation journey. A technology partner of choice, backed by strong track-record of innovation; credible investment in Digital solutions; assertion of commitment to client’s success, Zensar ’s comprehensive range of digital and technology services and solutions enable its customers to achieve new thresholds of business performance. Zensar, with its experience in delivering excellence and superior client satisfaction through myriad technology solutions, is uniquely positioned to help them surpass challenges around running their existing business most efficiently, helping in their legacy transformation, and planning for business expansion and growth through innovative and digital ways.

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For any queries please feel free to reach out:
 
PR Contacts (Global Headquarters - India):
 
Aradhana Prabhu
Public Relations
Zensar Technologies
+91 9765999749  
aradhana.prabhu@zensar.com 
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