Zensar reports 26.3% quarterly YoY constant currency growth in Q1FY23

Pune, India, August 5, 2022: Zensar Technologies, a leading experience engineering and technology solutions company, announced its consolidated financial results for the first quarter, ending June 30, 2022, of the fiscal year 2022-2023.

Financial Highlights:

• In Q1FY23, the company reported revenue of $155.9M, sequential QoQ growth of 3.1%, and quarterly YoY growth of 26.3% in constant currency
• In Q1FY23, the EBITDA stood at 11.2% of revenues
• The company reported net cash of $163.5M at the end of Q1FY23
• The US region posted sequential QoQ growth of 2.5% and quarterly YoY growth of 23.8% in constant currency
• The Europe region registered sequential QoQ growth of 3.5% and quarterly YoY growth of 39.8% in constant currency
• South Africa registered sequential QoQ growth of 6% and quarterly YoY growth of 21.1% in constant currency
• Banking, Financial Services, and Insurance (BFSI)* reported sequential QoQ growth of 8.1% and quarterly YoY growth of 56.1% in constant currency
• Hi-Tech and Manufacturing (HTM)* registered sequential QoQ growth of 0.5% and quarterly YoY growth of 3.8% in constant currency
• Consumer Services* registered sequential QoQ decline of 0.4% and quarterly YoY growth of 24.4% in constant currency

Ajay S. Bhutoria, CEO and Managing Director, Zensar Technologies, said, “We registered a quarterly YoY growth of 26.3% and sequential QoQ growth of 3.1% in constant currency, making this our fifth consecutive quarter of growth. While we see the onset of adverse market conditions, all our regions have grown. This brings to bear our investments in client transformation initiatives and our continued thrust across our verticals, geographies, and service lines. Our capabilities further deepened this quarter through skilling and training programs designed to enhance delivery and client engagement. By executing to our stated plan, we have driven momentum, brought resilience to our business and created headroom for growth.”

Regarding Q1FY23 performance, Sachin Zute, CFO, Zensar Technologies, said, “We have seen a steady quarter at the beginning of this fiscal year, with our constant currency revenues growing at 3.1% on a sequential QoQ basis and 26.3% on a quarterly YoY basis. We have felt the impact of currency volatility during the quarter. The order book shows a healthy trend aided by an uptick in net-new business. In addition, our DSO improved by 7 days to 83 days, underscored by our operational discipline and efficiency.”

Significant Wins in Q1FY23:

• Application development services and data engineering services mandate for an American global technology company
• Digital foundation services for a US-based drug wholesale company
• Application and advanced engineering services for a UK-based multilateral developmental investment bank
• Application and advanced engineering services mandate for a large US retailer
• Application services for a global fashion brand
• Application services for a large bank and financial services group in South Africa

*The Vertical classification of revenue has been restated to better reflect our current industry vertical structure. Restated data for last four quarters is provided in factsheet for comparison.

Corporate Excellence Snapshot in Q1FY23:

• Zensar has been mentioned in Gartner Competitive Signals: IT Services Providers’ Performance Snapshot
• Zensar has been mentioned in Gartner Vendor Revenue Profile Interactive Tool, 2021
• Zensar has been mentioned as a Disruptor in Avasant’s Retail Digital Services 2022-2023 RadarView™ report

Awards and Recognitions in Q1FY23:

• Zensar wins the CFBP Jamnalal Bajaj Award for Fair Business Practices under services category
• At the Hermes Creative Awards, Zensar wins Platinum both in Branding Refresh and in Marketing Collateral (Calendar), as well as Gold in Marketing Materials
• Foolproof is awarded CRO Agency of the Year at the UK Digital Growth Awards, 2022
• At the Telly Awards, Indigo Slate, a Zensar company, wins Gold in Campaign Promotion, Sliver in Branded Content Series, and Bronze in Immersive and Mixed Reality

At the Hermes Creative Awards, Indigo Slate, a Zensar company, wins Platinum in Client Documentary, in Product Marketing, and in Animation and Video Series, along with Gold in Brand Videos