Digital and eCommerce Services continue to drive Zensar’s Revenue Growth
Press Release | 22 Apr 2016
Company reports 12.8% Y-o-Y revenue growth for FY 15-16
Pune, India – April 22, 2016: Zensar Technologies, a leading digital solutions and technology services company that specializes in partnering with global organizations across industries on their Digital Transformation journey, announced its audited consolidated financial results for the fourth quarter and fiscal year ended March 31, 2016.
Financial Highlights The company reported at close of FY16: Year on year revenue growth of 12.8% from INR 2,628 Cr to INR 2,964 Cr. In USD Constant Currency terms, revenue growth was 8.5% for the same period; in USD terms, the growth was 5.4% from 430 USD M to 453 USD M. PAT for the same period increased by 9.4% from 43 USD M to 47 USD M and 16.8% from INR 265 Cr to INR 309 Cr. Revenue growth from the same quarter last year is reported at 4.6% from 106 USD M to 111 USD M and 13.5% from INR 658 Cr to INR 746 Cr. Broad based growth in Digital Revenue, grew to 27% of the FY16 revenue Through the two interim dividend announcements of 50% as the first interim, and 70% as the second Interim, the company paid 120% as total dividend during FY 16. The diluted EPS for FY16 was INR 68.6, a growth of 15.7% over last year.
Sandeep Kishore, Chief Executive Officer & Managing Director, Zensar Technologies said, “Digital and eCommerce services have shown significant growth in FY 16, representing 27% of the company’s revenues today. The company has won several new marquee clients in the eCommerce space in chosen industries, and has delivered good traction in new Digital services. The Retail business has also achieved significant growth enabled by these key digital levers.” “I am proud of our company’s achievements in FY 16. And having taken on the role as CEO and MD of Zensar on Feb 15, 2016, I can say confidently that we are very excited about the future of Zensar as a leader in the digital transformation space. We have launched a number of initiatives to help transform ourselves as a company, and deliver significant business value to our clients by, leveraging digital services considerably”, he added.
S Balasubramaniam, Chief Financial Officer, Zensar Technologies said, “In addition to growth in key business sectors we have adapted well to the shifting changes in the business environment, and have sharpened efforts towards investments, cost optimization and efficiency, to ensure we continue to deliver consistent profitability.”
Key Catalyst for Growth for full fiscal FY 15-16 Digital services contributed 27% of FY16 revenue. Application Services grew at 11.3% in constant currency organic terms Farming of existing accounts continued to improve with top 20 accounts now accounting for 54.6% of revenues against 51.0% last year.
Market Leadership Digital, eCommerce, IMS and Oracle are key levers of growth for Zensar, and significant developments have been made in capabilities, partnerships, client acquisition and new services being taken to market.
ZenVerse Zensar launched a new initiative to encourage open and direct communication between CEO and all associates, called ZenVerse. ZenVerse is a first of its kind native mobile and digital platform. It has received great feedback from associates globally given the democratization of conversation, and the increased transparency through this digital platform.
Digital and eCommerce The company has launched a new suite of services for the Chief Marketing Officer in our chosen industries The services in the Digital portfolio that are gaining significant traction include its Commerce Services, Retail Instore solutions to drive personalization and enhanced customer experience, Digital Marketing services and Social Analytics All the above are powered by our technology capabilities in Mobility, Social, Analytics, Customer Experience and IOT Zensar signed its first Oracle Commerce Cloud deal with Latin America’s leading Speciality retailer and financial services company that serves the mass market by providing consumer credit. Oracle Commerce Cloud is the SaaS version of its popular on premise Commerce products, and Zensar is one of the few providers globally that have certified Commerce cloud specialists and one of the first to start an implementation.
Oracle Zensar is now an Oracle Cloud Partner indicating key differentiation in the market, having developed skills and expertise in Oracle Cloud services focused on specific solution on Oracle’s key product pillars. With our cloud applications, specializations and success in transacting business, Zensar has demonstrated commitment to Oracle Cloud services geared to deliver value to our clients in their Cloud journey. Few significant deals include renewal of a significant multi-year Oracle Support contract accompanied by a celebration of 10 years of partnership with leading online gaming company; a significant deal to implement M&A solution for a leading manufacturing and distributing enterprise for precision optics and instrument; as well as successful completion of Oracle R12 upgrade and complex Business Intelligence upgrade projects for leading biomedical laboratory instrument manufacturing company and also key milestone completion for a large deal at an international inter-governmental organization. Zensar renewed its worldwide Oracle Platinum membership and accomplished Advanced Specialization in Oracle Finance, Supply Chain and HCM Gold Sponsorship for Oracle Cloud World event in Mumbai
IMS Zensar named in the Gartner Competitive Landscape: Leveraging Third Party Maintenance Providers for Data Center and Network Maintenance Cost Optimization, North America report – March, 2016 Gartner Positions Zensar Technologies in the Niche Players Quadrant of the 2015 Magic Quadrant for Data Center Outsourcing and Infrastructure Utility Services in North America – July, 2015 Zensar won the Service Excellence Award from CheckPoint at the Secure World Expo at Boston – March, 2016
Corporate Excellence Identified by Gartner as a niche player in its Magic Quadrant for ‘Data Centre Outsourcing and Infrastructure Utility Services’ in North America – July, 2015 Recognized by Gartner for its Oracle Application Management Service, Worldwide and SAP Application Management Service, Worldwide – October, 2015 Recognized by IDC in its report on IoT capabilities offered by SIs in manufacturing – January, 2016 Recognized by Forrester for its Digital Experience Delivery Services – February, 2016 Acknowledged by Everest in its PEAK Matrix as a major contender for Insurance Application Outsourcing – November, 2015 Acknowledged by Everest in its PEAK Matrix for its Digital Services – November, 2015 Recognized by SAP for Zensar’s SAP solutions - SAP S/4HANA for Life Sciences, 'ZenLife’; for Dairy Industries, 'ZenDairy'; for Industrial Machinery & Components, 'ZenMach' and for migration, 'ZenMIG‘ Silver Shield for Excellence in Financial Reporting by the Research & Development committee of the Institute of Chartered Accountants of India for FY15-16
Other Key Highlights Won a multi-year Managed Services Deal for UK’s largest department store retailer to manage their custom and package applications Chosen by one of Great Britain’s leading purchaser of energy generated by the independent sector, to be the sole system integrator across SFDC and other third party systems Won a multimillion dollar with a leading US kids products retailer to build and install their eCommerce site Signed our first Oracle Commerce Cloud deal with Latin America’s leading speciality retailer and financial services company Chosen by an international inter-governmental organisation to enhance and reengineer its ERP & BI applications as a part of a multi-year business transformation program. Won an Oracle Commerce Version 11.2 upgrade deal with a leading apparel retailer in NY Successfully won, and redesigned desktop and mobile check out flow experience, and Shop Runner integrations for major Apparel Retailer in the US Won and executed a multi-year and multimillion dollar Oracle Omni-commerce support and maintenance contract for South Africa’s leading fashion retailer Successful rollout of a multi-country Oracle B2B ecommerce site for an American Multinational company in the biotechnology sector
Financial highlights for FY 15-16
|USD Mn||INR Cr||USD %||INR %||Constant Currency|
|Revenue||$ 453||₹ 2,964||5.4%||12.8%||8.5%|
|EBITDA||$ 67||₹ 440||5.1%||12.3%||-|
|EBIT||$ 60||₹ 395||5.4%||12.6%||-|
|PAT||$ 47||₹ 309||9.4%||16.8%||-|
Q4 and FY 15-16 Revenue Growth in Constant Currency (US$)
|Particulars||Segments||Q4 FY16 QoQ||FY16 YoY|
|Consolidated||For the Company||-2.5%||8.5%|
|Services||Application Management Services||1.6%||14.3%|
|Infrastructure Management Services||-14.0%||-7.4%|
|Retail and Consumer Services||8.1%||52.8%|