Zensar reports 1.1% Y-o-Y growth in revenue in Q3FY20

Pune, India, January 23, 2020: Zensar Technologies, a leading digital solutions and technology services company that specialises in partnering with global organisations on their Digital transformation journey, announced its audited consolidated financial results for its third Quarter ending December 31, 2019 of the fiscal year 2019-2020.

Financial Highlights: The Company reported 1.1% YoY revenue growth at close of Q3FY20 from 141.8M USD to 143.3 M USD. In sequential terms, revenues have declined by 5.9% in dollar terms and consequently PAT for the quarter also declined sequentially and stood at 3.9% of revenue. Digital revenues continue to grow and is now 54.1% of Q3FY20 revenue. The Board of Directors has approved an interim dividend of Re 1 per share.

Sandeep Kishore, Chief Executive Officer and Managing Director, Zensar Technologies said, “A combination of furloughs, project specific customer ramp downs and continued softness in the retail vertical resulted in a soft quarter. However, our digital business across our cloud and infrastructure and applications continued its growth momentum registering a growth of 20.2 % YoY.”

Navneet Khandelwal, Chief Financial Officer, Zensar Technologies said, “Our focus on improving operating cashflows continues to show positive results. Rigour on invoicing and collections has ensured an increase in our net cash position by 33.4M USD Q-o-Q and a reduction in the DSO by 9 days Q-o-Q.”

Significant Wins Q3FY20:

• Infrastructure mandate for an American manufacturer of lighting solutions
• Digital solutions for a leading Insurance company in South Africa
• Digital transformation mandate for a large US-based Hi-tech global company
• Application and development work for a large US-based Hi-tech global company
• Application and maintenance services for a large South Africa based financial services group company
• Cloud and infrastructure services mandate for a US Hi-tech Mfg. company

Corporate Excellence Snapshot in Q3FY20:

• Zensar mentioned as a challenger in the Avasant Blockchain RadarView™
• Zensar recognized as an Innovator in Avasant’ s Hybrid Enterprise Cloud Services RadarView™ 2019
• Zensar featured in Digital Workplace of the Future - ISG Provider Lens™ Study 2019
• Zensar mentioned in the Competitive Landscape: Robotic Process Automation Service Providers 2019
• Zensar has been mentioned as disruptor in Avasant Intelligent Automation Services Radarview Report 2019
• Zensar mentioned as Major Contender in Application Transformation Services PEAK Matrix™ Assessment 2020.
• Zensar mentioned as an Aspirant in “Application and Digital Services in Banking –Services PEAK Matrix™ Assessment 2020
• Zensar mentioned as an Aspirant in Blockchain Services PEAK Matrix™ Assessment 2020.
• Zensar mentioned as an Aspirant in Advanced Analytics and Insights PEAK Matrix™ Assessment 2020
• Zensar mentioned as an Aspirant in Cloud Enterprise Resource Planning (ERP) – PEAK Matrix™ Assessment 2020
• Zensar mentioned as an Aspirant Talent Readiness for Next-generation IT Services PEAK Matrix™ Assessment 2020

Awards and Recognitions in Q3FY20:

• Zensar receives the ISG Special Award at the ISG Paragon Awards™ Americas
• Zensar participates in the ‘Women in the Workplace 2019’ report by McKinsey and LeanIn.Org
• Zensar recognized at the SHRM HR Excellence Awards 2019 for Excellence in Leveraging HR Technology and Excellence in HR Analytics

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

Q3 FY 20 Revenue and profitability snapshot