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Zensar reports 2.2% in constant currency sequential growth in Q2 FY 16-17
Digital continues to drive growth, over 40 M USD deals signed in Q2
Press Release | 17 Oct 2016
Pune, India, October 17, 2016: Zensar Technologies, a leading digital solutions and technology services company that specialises in partnering with global organisations across industries on their Digital Transformation journey, announced its audited consolidated financial results for their Quarter ending September 30, 2016, of the fiscal year 2016-2017.
Financial Highlights: The Company reported quarter on quarter revenue growth of 2.2% in constant currency at close of Q2 FY17 and 1.8% from 114.0 USD M to 116.0 USD M in USD terms. The EBIDTA for the quarter grew by 4.1% from 15.9 USD M to 16.6 USD M. Digital Services continued its growth momentum and contributed 27.8% of Q2 FY16-17 revenue.
Sandeep Kishore, Chief Executive Officer and Managing Director, Zensar Technologies said, “This Quarter has been a good one for new order booking, and we continue to have a robust pipeline across all service lines. We have signed large deals with marquee clients in the Digital and IMS Cloud businesses. Innovative new solutions that we have launched in the areas of automation and robotics aligned with our clients' business needs, have begun to show traction”.
“At Zensar the digital initiatives launched earlier this year have begun to show a 'Return on Digital™' helping us pass on the benefits to our clients”, Sandeep added.
S Balasubramaniam, Chief Financial Officer, Zensar Technologies said, “Zensar’s focus on its top 20 clients both in terms of penetration through multi service and digital have begun to show results in terms of revenue and profitability. This along with the Companies initiatives around operational and financial efficiencies have led to our EBITDA increasing to 14.3%”.
Market Leadership: Digital, eCommerce, IMS and Oracle are key levers of growth for Zensar, and significant developments have been made in capabilities, partnerships, client acquisition and new services being taken to market.
Corporate Excellence
- Zensar Listed in Gartner Report, Hybrid IT Infrastructure Management and Cloud Migrations: Top Providers' Strengths and Weaknesses, September 29, 2016
- Zensar Listed in Gartner Report, Competitive Landscape: Digital Business Consulting Services, September 29, 2016
- Zensar mentioned in Gartner’s Market Guide for Digital Business Consulting Services, July 6, 2016
- Zensar Technologies enables South Africa’s largest online retail store, NetFlorist to enhance customer shopping experience
- Zensar partners The Foschini Group (TFG) in Creating Digital and Mobile stores
- Zensar implemented a Digital Factory solution for India’s leading tire manufacturer with presence in global markets
- Zensar launched the new hosted order management solution powered by IBM Sterling Commerce, Oracle and Rapid Order Management Platform (ROMP)
- Zensar launched the new instore customer service automation chatbot – called ZBot
- The Company participated at the Oracle Open World 2016 at San Francisco and presented many new innovative solution demos.
Customer Wins
Digital led wins
- A large deal for Digital Commerce launch for a leading kids store in the US for all toys, video games, dolls, action figures, learning games, building blocks and more
- Oracle Commerce consulting deal signed in the UK for third largest home improvement retailer globally
- Oracle Commerce implementation at a US based manufacturer for laboratory instruments
- SAP S/4HANA migration for a leading Indian API manufacturer and supplier of Trimethoprim IP/BP to global pharmaceutical companies.
- A multimillion dollar managed e-commerce support deal for a Dutch design company that makes pushchairs for infants and toddlers.
- E-Commerce support deal for one of the leading distributors of replacement automotive parts and glass products in Southern Africa
Other service wins
- A multi-million dollar digital transformation large deal with one of the largest British motoring association and provider of insurance, financial and other motoring in the UK
- A multi-services large deal in the UK for a global leader in financial services corporation with the principal business of operating payment processing network
- A large deal for vendor optimization initiative for the largest networking company globally which designs, manufactures and sells networking equipment worldwide
- A multi-million dollar SharePoint Roll out and Infrastructure Support deal in the Europe for one of the agency dealing with labour issues, particularly international labour standards, social protection, and work opportunities for all.
- Next generation fleet management system deal in South Africa for one the largest Fleet Management company globally
- Oracle EBS deal for one of the largest signed in the US for one of the largest international retailing group that operates several chains of retail brands in the consumer durables sector
- ZenLife Implementation in partnership with SAP for one of the top providers of high-quality and cost effective generic drugs and medicines in the US
- Upgrade to Oracle R12 as Oracle's preferred partner for One of the top Retailer in the US for Plus Size Clothing
- SAP support services deal for a leading player in the UK’s oil and chemical industry
- Remote Infrastructure Management deal for one of the largest paper and plastic packaging businesses in Southern Africa.
- Oracle EBS implementation for a leading American home-furnishings company
Financial Highlights for Q2 FY16-17
|
Particulars |
Q2 FY17 |
Growth |
||||||
|
USD Mn |
Cr |
Q-o-Q |
Y-o-Y |
|||||
|
USD |
INR |
CC |
USD |
INR |
CC |
|||
| Revenue | $116 | ₹777 | 1.8% | 1.9% | 2.2% | (0.3%) | 2.7% | 2.3% |
| EBITDA | $17 | ₹111 |
4.1%
|
4.2% | (9.9%) | (7.2%) | ||
| EBIT | $15 |
₹99
|
2.6% | 2.7% |
(11.4%)
|
(8.7%) | ||
| PAT | $10 | ₹67 | (9.8%) | (9.8%) | (26.9%) | (24.7%) | ||
Q2 FY 16-17 Revenue Growth in Constant Currency (US$)
|
Particulars |
Segments |
Q2 FY16-17 |
|
QoQ |
||
| Consolidated | For the Company | 2.2% |
| Geography | US | 2.0% |
| Europe | 3.0% | |
| Africa | 4.1% | |
| ROW | -0.9% | |
| Services | Application Management Services | 1.5% |
| Infrastructure Management Services | 4.2% | |
| Maintenance | -13.6% | |
| Services | 13.9% | |
| Industry | Manufacturing | -2.2% |
| Retail and Consumer Services | 10.0% | |
| Financial Services | 1.8% | |
| Emerging | 14.6% |
