Zensar reports 0.6% sequential QoQ revenue growth, PAT growth of 130 basis points for Q2FY24
Press Release | 17 Oct 2023
- In Q2FY24, the company reported revenue of $150.2M, a sequential QoQ growth of 0.6% in reported currency and 0.2% in constant currency
- In Q2FY24, EBITDA was at 18.6% and PAT stood at 14.0% of revenues
- The company reported net cash of $227.1M at the end of Q2FY24, a quarterly YoY growth of 40.1%
- Europe region reported sequential QoQ growth of 11.3% and a quarterly YoY growth of 12.8% in constant currency
- South Africa reported sequential QoQ growth of 9.1% and a quarterly YoY growth of 18.8% in constant currency
- US region reported a sequential QoQ decline of 4.3% and a quarterly YoY decline of 10.7% in constant currency
- Banking and Financial Services reported a sequential QoQ revenue growth of 3.1% and a quarterly YoY growth of 7.8% in constant currency
- Manufacturing and Consumer Services reported a sequential QoQ growth of 6.7% and a quarterly YoY decline of 0.7% in constant currency
- Hitech reported a sequential QoQ decline of 8.0% and a quarterly YoY decline of 16.9% in constant currency
- Healthcare and Life Sciences reported a sequential QoQ decline of 1.5% and a quarterly YoY decline of 4.7% in constant currency
Manish Tandon, CEO and Managing Director, Zensar, said, “Our “Experience-Engineering-Engagement” proposition continues to deliver value to the customers. While we saw some slowdown in certain areas of the business, we also experienced good momentum in a few of our geographies and verticals. This demonstrates the resilience of our business model and the strength of our customer relationships.
Our core service lines are resonating well and are helping clients to achieve competitive differentiation. We are accelerating our Talent Transformation journey to enhance the skills of our employees and strengthening our diverse talent pool.”
Sachin Zute, CFO, Zensar, commenting on the Q2FY24 performance, said, “Our Profit After Tax (PAT) stood at 14.0% for the quarter, increased by a healthy 130 basis points QoQ and 940 basis points YoY. We have given annual wage hikes across the company effective 1st July, while also maintaining the margin in the mid-teens because of multiple margin improvement levers and disciplined budgetary control across the organization. The company reported net cash of $227.1M at the end of the quarter, with YoY growth of 40.1%. As we step into the second half of this fiscal year, we have a healthy order book. We continue to stay focused on execution, innovation, and cost optimization to further maintain Zensar's financial performance achieved in the last few quarters.
Significant Wins in Q2FY24:
- Application transformation, development, and support, including RPA, data analytics, AI, and ML, for a US-based multinational digital communications technology conglomerate
- Leveraging multi-tenant technology with Advanced Engineering Services for a US-based company that provides insurance brokerage, risk management, management consulting, and more
- Digital workplace and infrastructure development with Foundations Services and Data Engineering & Analytics for a US-based multinational that specializes in pharmaceutical products, business solutions, and value-driving services.
- Advanced Engineering Services enabling cloud architect design solution for a leading investment and holding company in South Africa
- Application development, RPA, and quality engineering for an international auction house based in the UK
Awards and Recognitions in Q2FY24:
- Zensar consecutively won two awards at the 2023 Brandon Hall Group HCM Excellence Awards