Zensar posts Q4 net profit of Rs 39 cr
News | 23 Apr 2013
Zensar Technologies, an RPG group company, reported a net profit of Rs 39 crore, marginally down for the fourth quarter ended March 31, as compared to Rs 39.2 crore in the same quarter last financial year. Revenue grew three per cent to Rs 508 crore for the quarter, from Rs 494 crore in the corresponding quarter last year. On a sequential basis, the company’s net profit was down 20 per cent, and revenues were down three per cent. The sequential performance was affected due to lower product sales (SAP license sales decreased Rs 7.4 crore), set-up time and costs for large deals, which will ramp up in Q1 FY14 and a spike in revenues in Q3 because of completion of four projects. The fourth quarter also saw investments in new sales teams and management trainees resulting in additional costs of Rs 2.4 crore. There was a one-time impact of tax assessment in an overseas territory of Rs 3.1 crore.
There was also a negative quarter on quarter swing in exchange gains of Rs 18.51 crore further impacting the margins. Ganesh Natarajan, vice chairman and MD, Zensar said, “In spite of a tough economic environment and a business model change in our Infrastructure Management unit, we have ended the year on a good note with excellent order book and pipeline.” The company also said that it has an order book of over $110 million of multimillion dollar deals in the last 6 months, the company expects to achieve 4-6% sequential revenue growth for Q1 FY14. For the full year, the company reported a growth of 9.98% in its net profit at Rs 174.53 crore, and revenues increased by 18.6% at Rs 2114.52 crore.