Zensar reports 1.8% YoY services revenue growth and YoY PAT growth of 700 basis points for Q3FY24

Pune, India, January 22, 2024: Zensar Technologies, a leading experience engineering and technology solutions company, announced its consolidated financial results for its third quarter, ending December 31, 2023, of the fiscal year 2023-2024.

Financial Highlights:

• In Q3FY24, the company reported services revenue of $144.5M, a quarterly YoY growth of 1.8% in reported currency and 1.3% in constant currency. This translates to a sequential QoQ decline of 3.5% in reported currency and 3.0% in constant currency
• In Q3FY24, EBITDA was at 17.2%, quarterly YoY increase of 600 bps and sequential QoQ decline of 130 bps
• PAT stood at 13.4% for Q3FY24, a quarterly YoY increase of 700 bps and sequential QoQ decline of 60 bps
• The company reported net cash and cash equivalents of $248.3M at the end of Q3FY24, QoQ growth of 9.4%
• Europe region reported YoY services revenue growth of 18.2% in reported currency and 12.0% in constant currency
• South Africa reported YoY services revenue growth of 11.3% in reported currency and 18.0% in constant currency
• US region reported YoY services revenue decline of 4.1% in reported currency and 4.2% in constant currency
• Banking and Financial Services reported YoY services revenue growth of 12.8% in reported currency and 12.6% in constant currency
• Manufacturing and Consumer Services reported YoY services revenue growth of 7.2% in reported currency and 5.5% in constant currency
• Hitech reported YoY services revenue decline of 9.8% in reported currency and 9.6% in constant currency
• Healthcare and Life Sciences reported YoY services revenue decline of 14.2% in reported currency and 14.3% in constant currency

Manish Tandon, CEO and Managing Director, Zensar, said, “Our focus on client centricity and developing a strong go to market proposition via our Experience to Engineering to Engagement approach is yielding dividends. Our client conversations remain positive, and we expect growth in line with the industry.

We continue to double down on service lines that will propel growth and will keep our focus in helping clients through their transformation journey. Talent transformation through new age skill development remains our priority.” 

Sachin Zute, CFO, Zensar, commenting on the Q3FY24 performance, said, “Our disciplined approach on execution has led to consistent financial performance over last 4 quarters resulting in EPS accretion of 110.7% YoY. Our Profit After Tax (PAT) for the quarter stood at 13.4%, which is an increase of 700 basis points YoY. The company continues to generate healthy cash and have added $68.9M on YoY basis. We continue to focus on our collection rigor with DSO standing at 75 days for the quarter. These improvements underscore our unwavering commitment to enhance critical financial metrics. Additionally, the Board of Directors at its meeting held on January 22, 2024, declared an interim dividend of INR 2.00 per equity share of the company for the financial year 2023-24.

Significant Wins in Q3FY24:

• Helping a connectivity platform provider, through Data Engineering and Analytics to integrate IoT in their cloud-based product aligned to IoT Security Architecture.
• Integrating Advance Engineering Service solutions to tackle Security loopholes for one of the USA’s smart cities by reducing cost and advancing their existing technology to give better business uptime.
• Transforming legacy payment application for corporate customer through digitalization for South Africa’s major banking services firm.
• Digital Foundational Service to migrate and upgrade Global E-business instance on AWS cloud for one of the largest vacation ownership companies
• Delivered end to end Product engineering on microservice architecture for one of the largest payment corporations

Awards and Recognitions in Q3FY24:

• Zensar was recognized as one of the 100 Best Companies for Women in India and an Exemplar of Inclusion in the Most Inclusive Companies Index (2023) by Avtar & Seramount
• Zensar was awarded Best in Vulnerability Management (IT Services) at the 2nd Annual Quantic India Cybersecurity Excellence Awards 2023