Zensar Technologies net down 7%

Pune based mid-sized  IT services and solutions firm Zensar Technologies, part of the RPG Group, has posted a net profit at Rs 48.7, down by 7 per cent at 52.29  crore for the third quarter FY12 ended December 31, 2012. Revenue for the quarter increased 9 per cent to Rs 524.78 crore from Rs 480.83 crore in the same quarter last year.

Its consolidated net sales were down at Rs 525 crore veRs us Rs 537 crore as compared to last quarter.

S Balasubramaniam, chief financial officer, Zensar Technologies said, “Due to planned shutdown in two significantly large accounts, revenues were lower by 2.3 per cent  this quarter, however continued focus on utilization and productivity have seen profits move up sharply by 51per cent.”

Commenting on results, Ganesh Natarajan CEO and Vice Chairman, Zensar Technologies said, "The company has maintained steady performance with all focus verticals showing growth. The insurance business is upbeat and manufacturing and retail continue to be on target, showing a healthy pipeline of business and a good order book to help us attain our growth goals. In the infrastructure management business ,though the data center and products business has been sluggish, integrated dual shore IM has been showing good traction with a number of significant deals being converted this Quarter."

The company has signed deals with cumulative value of over $120 million across all the verticals. According to Zensar, the Insurance vertical has been a major growth engine reporting significant successes with a $24Imillion  deal with a leading US health insurance provider. As part of the five year deal, Zensar will assist client in meeting challenges posed by continuing implementation requirements because of regulations.