Zensar reports 27.4% quarterly YoY growth in Q4FY22

Pune, India, May 10, 2022: Zensar Technologies, a leading experience engineering and technology solutions company, announced its consolidated financial results for its fourth quarter ending March 31, 2022, of the fiscal year 2021-2022.

Financial Highlights:

• In Q4FY22, the company reported revenue of $153.2M, a sequential QoQ growth of 4.1%, and quarterly YoY growth of 27.4%
• In Q4FY22, the gross margin stood at 30.1% of revenues in Q4FY22, representing a sequential QoQ increase of 50 basis points
• In Q4FY22, PAT stood at $17.2M or 11.2% of revenues, a sequential QoQ increase of 300 basis points
• For FY22, the company reported revenue of $569.4M, an increase of 15.3% YoY
• For FY22, the PAT stood at $55.9M, or 9.8% of revenue, an increase of 18.4% YoY
• The company reported net cash of $155.7M at the end of Q4FY22
• The US region posted a 28.8% quarterly YoY growth and 3.4% sequential QoQ growth
• The Europe region registered its highest ever quarterly revenue with quarterly YoY growth of 29.7% and sequential QoQ growth of 9.8%
• South Africa posted a quarterly YoY growth of 15.7% and sequential QoQ decline of 0.1%
• BFSI reported quarterly YoY growth of 35.4% and sequential QoQ growth of 5.3%
• Hi-Tech and Manufacturing registered a quarterly YoY growth of 13.7% and a sequential QoQ growth of 3.2%
• Consumer Services registered a quarterly YoY growth of 34.1% and sequential QoQ growth of 3.9%

Ajay S. Bhutoria, CEO and Managing Director, Zensar Technologies, said, "This has been one of our strongest quarters with revenues at $153.2M and our best year yet with annual revenues at $569.4M. This growth reinforces the value our clients place on our services. Our quarterly YoY growth of 27.4% has been the highest in the last few quarters due to strong deal momentum across all geographies and verticals. Our new strategy unveiled with a new brand at the beginning of the fiscal year has helped us drive increased engagement and traction with our clients.”

“In terms of performance across the regions: Europe, at quarterly YoY growth of 29.7% and sequential QoQ growth of 9.8%, has seen one of its highest ever quarterly revenue numbers. The US region posted a 28.8% quarterly YoY growth and 3.4% sequential QoQ growth, driven by the growth in both existing and new accounts. South Africa also continued its momentum, posting a quarterly YoY growth of 15.7%.”

He further elaborated, "From a vertical perspective, Consumer Services has seen a significant turnaround, with a quarterly YoY growth of 34.1%. BFSI at 35.4% quarterly YoY growth and HTM at a quarterly YoY growth of 13.7% have also demonstrated strong performance. We continue to operate in a hybrid work model as the world returns to normalcy. Our people remain a key priority, as we focus on their well-being and continue to invest in their training and upskilling to enable them to stay ahead of the curve.”

*Numbers presented above are adjusted to exclude TPM business performance and adjusted for exceptional items unless otherwise mentioned

Speaking on the Q4FY22 performance, Sachin Zute, CFO, Zensar Technologies said, “Our PAT has registered a quarterly YoY growth of 38.7% and 18.4% YoY for FY22. Our net cash stood at $155.7M at the end of Q4FY22. Our order book for the Q4FY22 quarter stood at $165.6M, a healthy 32% growth over the last quarter, which is a good indicator of the relevance of our capabilities to our clients. Additionally, the Board of Directors of Zensar Technologies Ltd at its meeting held on May 10, 2022, has recommended payment of Final Dividend at the rate of Rs. 3.5 per Equity Share for the financial year 2021-22.”

Significant Wins in Q4FY22:

• Application development services mandate for a large American retail brand
• Development services for a large UK-based multiple interest company
• Application development services contract for an American lifestyle brand
• Application services for a niche insurance US company
• Cloud and infrastructure services mandate for a US city

Corporate Excellence Snapshot in Q4FY22:

• Zensar has been recognized as a “Leader” in the digital supply chain transformation by ISG
• Zensar has been recognized as “Rising Star” in ISG Provider Lens™ Digital Business – Solutions and Services U.S. 2021
• Zensar has been recognized as "Major Contender" and "Star Performer" in Everest Group's Digital Interactive Experience (IX) Services PEAK Matrix® Assessment 2022
• Zensar has been featured in the Gartner Magic Quadrant for Outsourced Digital Workplace Services
• Zensar has been recognized as "Major Contender" and "Star Performer" in Everest Group Artificial Intelligence Services PEAK Matrix Assessment 2021

Awards and Recognitions in Q4FY22:

• Zensar wins the 2022 Training APEX international Awards by Training Magazine
• Zensar has been recognized as Top Employer in 2022 in South Africa
• Zensar wins across multiple categories at the 2021 DivHERsity Awards
• Foolproof, a Zensar company, was named one of the #BIMA10 (British Interactive Media Association) for their work with One Shot Immersive