Zensar Q1 net up 36% at Rs 76 cr y-o-y

The management is confident of meeting Nasscom's growth target for FY16

Strong demand for digital solutions and stability in its infrastructure management services business lifted Zensar Technologies first quarter numbers for the fiscal 2015-16.

Zensar’s net profit for first quarter ended June 30, 2015 at Rs 76.27 crore grew 36.2% from Rs 55.98 crore in the same quarter last year. On sequential basis the firm's net profit rose 6.2%.

Revenue for the quarter increased 16.5% at Rs 704.64 crore for the quarter from Rs 604.78 crore in the same quarter last year. On a quarter-on-quarter basis the firm’s revenue  grew 7.2%.

Ganesh Natarajan, Vice Chairman and CEO, Zensar Technologies said: “This has been a quarter of robust growth for Zensar on all fronts. The company has been focusing on new client acquisition and strategic deals in Digital and eCommerce. Our enterprise business has grown 12.5% on a sequential basis. More importantly, the drag on profitability due to our IM business has now become flat. This has impacted profitability positively.”

Natarajan also added that though the first two quarters of the financial year are strong, this time around visibility of deal pipeline much stronger. “We have a deal pipeline of around $350 million. Generally 20% of this pipeline gets closed. What’s important is that we have visibility of 96% of the deal pipeline at this point of time,” he added.

The company is confident that FY16 will be a better year than FY15. “Currency remains a challenge. We have exposure to South African Rand and along with Europe we do see some impact. We are confident that we will meet Nasscom’s industry growth target for FY16,” said Natarajan.

Nasscom has predicted that the Indian IT services industry will grow by 12-14%.