Zensar reports 5.8% YoY growth in revenue for FY20

Pune, India, May 14, 2020: Zensar, a digital solutions and technology services company that specialises in partnering with global organisations on their digital transformation journey, announced its audited consolidated financial results for Quarter ending March 31, 2020, of the fiscal year 2019-2020.

Financial Highlights:

• In Q4FY20 the Company reported revenue of $140.6MN. For the year FY20 Revenue grew by 5.8% in USD terms to $589.5MN, Core Business grew by 6.8% YoY.
• In Q4FY20, the Company reported a PAT of $9.6MN, a sequential growth of 72.9%. For FY20, the PAT declined by 18.7% at $37.8MN
• EBITDA grew by 100.2% sequentially and declined by 0.2% YoY in Q4FY20
• In Q4FY20, the Company reported a Gross Margin of $40.6MN, a sequential growth of 20.0%. For FY20, the Gross Margin was at $163.9MN which is an increase of 0.8% since last year

Sandeep Kishore, Chief Executive Officer and Managing Director, Zensar Technologies, said, “In FY20 we focused on improving our business operational metrics. One of the key highlights include an increase in the number of our $5MN per annum customer accounts which grew by 5 YoY, underlining that our new age digital, data and cloud offerings are helping our clients transform their business. Our digital business continues its consistent growth at 23.0% YoY in constant currency terms in FY20.”

Adding further, he said, “The current COVID-19 related situation has further reinforced our customer-centric values, as we partner with our customers to remain a key part of their operational and strategic roadmap. Our global workforce is our priority and we continue to support them in all possible ways to remain healthy, safe, connected and productive.”

Navneet Khandelwal, Chief Financial Officer, Zensar Technologies said, “In FY20, we put focused efforts to improve our cash management. All the initiatives resulted in an increase of our operating cash flow by 299.2% on a YoY basis in INR terms. It stood at 229.3% of our PAT in FY20.”

“Additionally, our rigour on collections helped us to improve our DSO from 102 days to 87 days. Our cost optimization measures have resulted in an increase in the EBITDA on a sequential basis by 100.2% and our Gross Margin improved sequentially by 20.0% .” he further added.

Significant Wins in FY20:

• Oracle consulting and implementation for a leading international standards organization
• Application development and integration for a leading financial services group in South Africa
• Guidewire implementation for a US based property and casualty auto insurance carrier
• Mandate for digital workplace for a US based large manufacturer of lighting and lighting based products
• Infrastructure mandate for an American manufacturer of lighting solutions
• Digital solutions for a leading Insurance company in South Africa
• Digital transformation mandate for a large US-based Hi-tech global company
• Application and development work for a large US-based Hi-tech global company
• Application and maintenance services for a large South Africa based financial services group company
• Cloud and infrastructure services mandate for a US Hi-tech Mfg. company
• Digital Transformation for Sanlam, a leading insurer from South Africa
• Application and development mandate for a large US based hi-tech global company
• Application, integration and support for a leading financial services group in South Africa
• A multi-million-dollar deal for the digital transformation for a UK based conglomerate having diverse interests
• Infrastructure Management for a leading South Africa based administration and technology provider to financial companies
• Guidewire support for one of UK's fastest growing general insurance providers
• Digital warehouse mandate and automated testing for a global sports company
• Application Support and Enhancement and Application Development and Integration for an independent provider of private healthcare in UK
• Deliver next-gen retail innovation for Aptos, a recognized market leader in retail technology solutions
• Cloud and Infrastructure managed services support for a leading vision care company based in the US
• Application and development mandate for a large US based hi-tech global company
• Testing mandate for a leading financial services group in South Africa
• Enterprise applications mandate for Vyaire Medical, US

Corporate Excellence Q4FY20:

• Zensar has been mentioned in in Avasant’ s Internet of Things Services RadarView 2020 report
• Zensar Recognized in ISG Provider Lens™ Digital Business Solutions and Service Partners U.K. 2019-20
• Zensar Recognized as an Innovator in Avasant’ s Hybrid Enterprise Cloud Services RadarView™
• Zensar Recognized as a Leader in the ISG Provider Lens™ ‘Digital Workplace of the Future’ Report
• Zensar Recognized in ISG Provider Lens™ Digital Business Solutions and Service Partners U.S. 2019-20
• Zensar mentioned as an Innovator in Avasant Radarview Applied AI and Advanced Analytics Services RadarView TM 2020
• Zensar is named as Leader for Managed Services – Workplace Support in Digital Workplace of the Future - ISG Provider Lens™ Quadrant Report 2019-20
• Zensar has been mentioned in Everest Group’s 2020 PEAK Matrix® Service Provider of the Year awards Top 10 Challengers
• Zensar Recognized as a Disruptor in Avasant’ s Intelligent Automation Services RadarView 2019-2020 Report
• Niche Player in the 2020 Gartner Magic Quadrant for Managed Workplace Services, North America

Awards and Recognitions Snapshot-FY20:

• Zensar’s ‘Women in Workplace’ case study wins at the UN Global Compact’s 3rd Best Innovative Practices Awards
• Zensar Recognized for Excellence in Leveraging HR Technology and Excellence in HR Analytics at the annual SHRM HR Excellence Awards 2019
• Zensar wins recognition in the category of ‘Best Leadership Development Program’ and ‘Best OD Intervention’ at the L and D World Summit 2019
• Zensar wins 2019 Future of Learning and Development “Best Learning Strategy of the Year” Award
• Zensar awarded Automation Anywhere’s 2019 ‘Growth Partner of the Year for South Africa’
• Zensar featured in 2019 Working Mother and AVTAR 100 Best Companies for Women in India list
• Zensar is a finalist in 3 categories at the ISG Paragon Awards™
• Zensar receives the ISG Special Award at the ISG Paragon Awards™ Americas
• Zensar participates in the ‘Women in the Workplace 2019’ report by McKinsey and LeanIn.Org
• Zensar recognized at the SHRM HR Excellence Awards 2019 for Excellence in Leveraging HR Technology and Excellence in HR Analytics
• Foolproof, a Zensar company wins the BIMA award
   

Q4 FY 20 Revenue and profitability snapshot (US$)

Note: All numbers are as per the Ind-AS reporting standard