Zensar reports 18.1% YoY revenue growth and 67.5% YoY Net profit growth in Q1 FY19
Press Release | 9 Aug 2018
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 first Quarter ending June 30, 2018 of the fiscal year 2018-2019.
Financial Highlights: The Company reported sequential revenue growth of 6.6% at close of Q1 FY19 from 126.6M USD to 135.0M USD. The PAT for the quarter is at 9.1% of the revenue and recorded a QoQ growth of 8.6%. Digital revenues continue to grow and have moved up 12.8% sequentially from 40.6% of revenue in Q4 FY18 to 43.0% of Q1 FY19 revenue.
Sandeep Kishore, Chief Executive Officer and Managing Director, Zensar Technologies said, “The Company has reported a stellar industry- leading Y-on-Y Revenue growth of 18.1% in the first quarter of the fiscal year. Digital continues to grow sequentially, underlining the success of our proprietary ‘Return on Digital®' strategy. With the acquisition of Indigo Slate, a US based digital customer marketing, experience agency we expect the growth momentum to continue. We also continued to book new business backed by large deals resulting in a comprehensive and impressive performance.”
Navneet Khandelwal, Chief Financial Officer, Zensar Technologies said, “All the core businesses of Zensar have shown good growth in constant currency terms. This is reflected in Y-o-Y PAT growth at 67.5% in this quarter highlighting efficient cost management and increased contribution from ZenROD solutions. We have improved profitability with sustained growth both in our Digital and legacy businesses”
Significant Wins Q1 FY19:
- A multi-million-dollar, large deal for custom applications and solutions in the US with a global diversified brand
- Application Management Services win for a large US based hi-tech global company
- A digital application services deal in the UK for an American multinational financial services corporation
- An Oracle EBS deal with a US based developer of global navigation satellite systems
- Application support and management win with one of the largest global diversified corporation in the US
- An Oracle services win for a US based leading video and game entertainment company
- An oracle Fusion deal for a leading US based hotel and real estate management company
- An Enterprise applications services deal with a leading European online retailer and home shopping company
- A Custom Applications deal with a leading SA based online micro gaming company
- A digital commerce services win for a leading American fashion company
- A digital commerce services deal for a leading South African clothing retail company
- A digital commerce mandate for an American corporation and marketer of automotive replacement tires
Corporate Excellence Snapshot in Q1 FY 19:
- Zensar mentioned in the Gartner Market Guide for Sales Force Implementation Services
- Zensar mentioned in the Gartner Market Guide for Blockchain Consulting and Proof of Concept Development Services
- Zensar names in the Everest Enterprise QA Services PEAK Matrix™ Assessment
- Zensar named as Major Contender in Everest Group Digital Workplace Services Market Trends and PEAK Matrix™ Assessment for second consecutive year
- Zensar recognized in ISG Cloud Services Archetype Report as Next-Gen Leader
- Zensar recognized in ISG Infrastructure and Data Center/Private Cloud Archetype Report and noted for our digital transformation and automation initiatives
- Zensar Wins Innovation Award from Skillsoft and SumTotal
Corporate Initiatives:
- Zensar launches its First Customer Delivery center in Research Triangle Park (RTP), North America
- Zensar unveils second Zenlabs at Hyderabad, India
- Zensar Joins Oracle Cloud Excellence Implementer Program to Drive Customer Success
Note: All number are as per the Ind-AS reporting standard
Q1 FY19 Revenue and Profitability snapshot (US$)
Particulars Q1 FY19 Growth USD Mn INR Cr Q-o-Q Y-o-Y USD INR CC USD INR CC Revenue $135.00 ₹ 904.7 6.60% 11.00% 7.50% 18.10% 22.80% 16.60% EBITDA $18.40 ₹ 123.3 18.40% 23.30% 56.40% 62.60% EBIT $15.70 ₹ 105.1 17.30% 22.10% 75.00% 81.90% PAT $12.30 ₹ 82.2 8.60% 13.10% 67.50% 74.10%
Q1 FY19 Revenue Growth in Constant Currency
Particulars
Segments
Q1 FY19
QoQ
Consolidated
For the Company
7.5%
Geography
US
9.3%
Europe
5.3%
Africa
5.7%
RoW
(17.0%)
Services
Digital and Application Services, DAS
6.6%
Digital Services
13.5%
Core Application Services
1.6%
Cloud and Infrastructure Services, CIS
13.0%
Cloud, Digital Led next gen CIS
16.7%
Core Infrastructure Services
6.9%
Third Party Maintenance
15.8%
Total Digital Services
13.8%
Industry
Hitech and Manufacturing
4.4%
Hitech
4.7%
Mfg.
3.7%
Retail and Consumer Services
(2.5%)
Financial Services
26.4%
Insurance
37.3%
Banking
(7.8%)
Emerging
53.9%
