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Zensar reports 3.1% sequential quarter revenue growth in Q1 FY 18
Digital services continue to grow and are at 36.3% of revenue
Press Release | 20 Jul 2017
Pune, India, July 20, 2017: 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 its first Quarter ending June 30, 2017 of the fiscal year 2017-2018.
Digital services continue to grow and are at 36.3% of revenue
Financial Highlights: The Company reported quarter on quarter revenue growth of 3.1% at close of Q1 FY18 from 110.9 USD M to 114.3 USD M. The PBT for the quarter is at 9.6% of the revenue at 11.0 USD M. Digital services continue to grow and have moved up 8.8% sequentially from a 34.4% of revenue contribution in Q4 FY 17 to 36.3% of Q1 FY 18 revenue.
Sandeep Kishore, Chief Executive Officer and Managing Director, Zensar Technologies said, “Zensar’s Digital business has kept up its growth momentum in the first Quarter of fiscal year 2017-2018. Digital has continued to grow each quarter currently standing at 36.3% of our revenue. The new services and solutions built on the key premise of Return on Digital® have contributed to over half of our new wins.”
“Zensar’s key regions are all doing well and showing steady growth through effective account mining”, Kishore added. “Last financial year has been a significant one for Zensar with key acquisitions, highly relevant digital partnerships and launch of new solutions focused to our markets. This Quarter the two acquisitions made have shown significant traction in experience design, omnichannel and digital supply chain.”
Manoj Jaiswal, Chief Financial Officer, Zensar Technologies said, “Despite the currency headwinds, we have maintained our profitability. The Company’s gross margin for the current quarter was 27.6% as against 27.7% in the previous quarter. Forex Impact on Gross Margin is 1.2% adverse. We continue to retain sharp focus on operational efficiencies and drive towards cost optimization. The company’s utilization increased to 83.2% this Quarter from 79.6% in the previous quarter.”
Significant Wins Q1 FY 18:
The Company reported some significant new wins, with over 50% of new clients added in the Digital space, contributing to the Digital services business at Zensar. Some of the key deals include:
A. Digital Wins
- Experience Design services deals for multiple organisations - for a payment and money transfer solutions company, for an American multinational biopharmaceutical company, for a US-based provider of online trading services, for a British wealth management company, for a community centre headquartered in Austria, and for an online odds comparison service.
- Digital application services for an American manufacturing test and measurement devices company, and Artificial Intelligence modernization for a global lifestyle retailer founded in America, CRM development for financial investment management company, and Digital Commerce Services for the Mexico arm of leading American multinational retailing corporation.
B. Traditional Services Wins
- Application management services for South African group of television channels
- IMS Services for a non-governmental organisation focused on global development and poverty eradication, and for an American worldwide consumer products company, an American multinational biotechnology company
- Multivendor support services for an American company operating a worldwide online payments system, a managed hosting services provider in Europe, an American networks solutions provider
Corporate Excellence in Q1 FY 18:
- Zensar announced two acquisitions last financial year – Foolproof and Keystone Logic. Foolproof is an Experience Design company and Keystone Logic is a leading Omnichannel and Digital Supply Chain company.
- Zensar announced a number of new solutions - ZenAnalytica (big data enabled platform), ZenSmartBlox (Blockchain Enablement Framework), and the Return on Digital® enabled ecosystem.
- The Company signed an alliance with Backbase to extend digital capabilities enabling our global banking customers to accelerate decision making with enhanced customer engagement
Industry Recognition in Q1 FY 18:
- Zensar has made it to the Gartner Magic Quadrant for Data Center Outsourcing and Infrastructure Utility Services, North America
- Zensar found mention in the Everest Group IT Infrastructure Automation – Market Update and PEAK Matrix™ Assessment for Solutions (Focus on IT Service Providers)
- Zensar has been reported in the Gartner Competitive Landscape: Partnering With Third-Party Maintenance Providers for Data Center and Network Maintenance Cost Optimization
- The Company is now included in the Gartner Digital Commerce Vendor Guide, 2017
- Zensar has also been mentioned in the Gartner Market Share: IT Services, 2016
Note: All numbers are as per the Ind-AS reporting standard.
|
Particulars |
Q1 FY18 |
Growth |
||||||
|
USD Mn |
INR Cr |
Q-o-Q |
Y-o-Y |
|||||
|
USD |
INR |
CC |
USD |
INR |
CC |
|||
|
Revenue |
$ 114.3 |
₹ 736.7 |
3.1% |
(0.9%) |
2.5% |
1.2% |
(2.5%) |
1.7% |
|
EBITDA |
$ 11.8 |
₹ 75.8 |
33.7% |
28.6% |
|
(25.1%) |
(27.8%) |
|
|
EBIT |
$ 9.0 |
₹ 57.8 |
29.7% |
24.8% |
|
(36.2%) |
(38.6%) |
|
|
PAT |
$ 7.3 |
₹ 47.2 |
374.8% |
356.6% |
|
(33.9%) |
(36.3%) |
|
Q1 FY 17-18 Revenue Growth in Constant Currency (US$)
|
Particulars |
Segments |
Q1 FY17-18 |
|
QoQ |
||
|
Consolidated |
For the Company |
2.5% |
|
Geography |
US |
4.1% |
|
Europe |
(0.9%) |
|
|
Africa |
7.3% |
|
|
RoW |
(31.7%) |
|
|
Services |
Application Management Services |
1.8% |
|
Infrastructure Management |
5.4% |
|
|
Maintenance |
0.2% |
|
|
Services |
9.6% |
|
|
Industry |
Manufacturing |
(4.6%) |
|
Retail and Consumer Services |
8.9% |
|
|
Financial Services |
9.3% |
|
|
Emerging |
27.5% |
