Zensar Technologies posts 8% dip in net at Rs 91 crore in December quarter

Zensar Technologies said its net profit declined 7.8 per cent to Rs 91 crore for the December 2021 quarter.

Zensar Technologies on Monday said its net profit declined 7.8 per cent to Rs 91 crore for the December 2021 quarter.

It had posted a net profit of Rs 98.7 crore in the year-ago period, Zensar Technologies said in a statement.

Its revenue, however, rose 21.6 per cent to Rs 1,102.5 crore in the reported quarter from Rs 906.5 crore in the year-ago period, it added.

The company reported net cash of USD 168 million in the third quarter of FY22.

"Our revenue growth of 19.8 per cent quarterly y-o-y reinforces the value our clients place on our services...These outcomes are the result of initiatives launched in the first half of the year and include the integration of M3bi into our overall strategy, Zensar Technologies CEO and Managing Director Ajay S Bhutoria said.

He added that to meet increasing demand, the company has stepped up investments in strengthening its talent pool by expanding lateral hiring and hiring from campuses, as well as by upskilling existing workforce.

"As always, the safety and well-being of our associates continue to be a top priority as we continue to work largely from home in all locations, he said.

Navneet Khandelwal, Chief Financial Officer of Zensar Technologies, said increased operational efficiency has resulted in improved working capital.

"We continue to streamline operational metrics and fresher intake on margins. Additionally, the Board of Directors of Zensar Technologies Ltd at its meeting held on January 24, 2022, has recommended payment of interim dividend at the rate of Rs. 1.5 per equity share for the financial year 2021-22, he said.

The company said it added 1,416 employees (gross) during the quarter to take its headcount to 10,641 people. Its attrition (last 12 months basis) was at 26.7 per cent.

On a quarterly year-on-year basis, the US region reported growth of 20.8 per cent, Europe 23.7 per cent, and the South Africa region 8.3 per cent, the statement said.

From a vertical perspective, the Banking vertical posted a quarterly y-o-y growth of 76.5 per cent, while the insurance vertical posted a quarterly y-o-y growth of 8.9 per cent.

The Consumer Services vertical posted a quarterly y-o-y growth of 26 per cent, and the Hi-Tech and Manufacturing vertical reported a quarterly y-o-y growth of 7.1 per cent, the statement noted.

Zensar said Khandelwal tendered his resignation from the post of CFO due to personal reasons wef close of business hours on January 31, 2022.

The company is in the process of identifying/hiring a new candidate for the said position, it added.