Zensar reports 5.8% sequential QoQ growth in revenue for Q1FY22

Pune, India, July 26, 2021: Zensar Technologies, a leading digital solutions and technology services company, announced its consolidated financial results for its first quarter ending June 30, 2021, of the fiscal year 2021-2022.  

Financial Highlights:

• In Q1FY22, the company reported revenue of $127.2 Mn, a sequential QoQ growth of 5.8%

• PAT grew sequentially by 10.9% QoQ and YoY by 43.4%

• EBITDA grew YoY by 25.5%

• The company reported net cash $183.2 Mn in Q1FY22 vs. $166.3 Mn as of March 31, 2021

• Hi-Tech services grew sequentially by 13.5% QoQ and Banking vertical posted a sequential QoQ growth of 5.2%

• US region reported sequential QoQ growth of 6.7%. South Africa region reported a sequential QoQ growth of 9.5%

• Headcount as of June 30, 2021 stood at 9512

Ajay S. Bhutoria, Chief Executive Officer and Managing Director, Zensar Technologies, said, "Driven by strong business and operational focus, we saw our revenue increase sequentially QoQ by 5.8% in Q1FY22, and our PAT by 10.9%. This growth is underpinned by healthy performance in our key verticals of Hi-Tech/Manufacturing and Financial Services, and momentum in our US and South Africa regions. With our strategic growth areas clearly defined, we continue to strengthen our go-to-market along stated focus areas. In line with this, we completed the acquisition of M3bi, which augments and strengthens our advanced engineering and data analytics capabilities."

Adding further, he commented, "We continue to work closely with our clients during this pandemic to deepen our expertise and strengthen our offerings. We have stepped up our initiatives to enhance the skills of our associates and ready them for transformative projects with our clients and carry out new directions in thinking."

Navneet Khandelwal, Chief Financial Officer, Zensar Technologies, said, "Q1FY22 has seen growth in PAT at 43.4% YoY. Our continued focus on cash generation has resulted in our cash position further strengthening to $183.2 Mn in Q1FY22. Our EBITDA has grown by 25.5% YoY, with our earlier initiatives bearing results in this fiscal. We have concluded the acquisition of M3bi in July, and their revenues will be included in our performance from Q2 onwards."

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

Significant Wins in Q1FY22:

• Application and development maintenance services for a global risk management company

• Application and development maintenance mandate for a large US Hi-Tech company

• Cloud services for a US-based city/or civic body

• Digital services mandate for a US-based insurance service provider

• Application and development maintenance services for a Europe based material and logistics automation company

• CX services for a US-based entertainment brand

• CX services mandate for a US-based diagnostics company

• Enterprise application services for a large US-based conglomerate

Corporate Excellence Snapshot in Q1FY22:

• Zensar has been mentioned as a “Niche Player” in Gartner Magic Quadrant for Managed Mobility Services, Global

• Zensar has been positioned as a "Major Contender" on the Application and Digital Services in Banking PEAK Matrix® Assessment 2021

• Zensar has been featured in the service providers list of Gartner Digital Commerce Vendor Guide 2021

• Zensar has been mentioned as "Product Challenger" for Managed Services for Large Accounts in Next-Gen Private/Hybrid Cloud - Data Center Services and Solutions

• Zensar has been mentioned as "Leader" for Managed Services for Midmarket for Large Accounts in Next-Gen Private/Hybrid Cloud - Data Center Services and Solutions

• Zensar has been mentioned as "Major Contender" in Application and Digital Services in Banking PEAK Matrix® Assessment 2021: Global and Europe Focus

Awards and Recognitions in Q1FY22:

• Zensar Technologies Wins 2021 Artificial Intelligence Breakthrough Award for 'Best Use of Virtual Reality for Retail Applications'

• AVA Digital awards (Indigo Slate, a Zensar company)

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