Zensar Q1 net down 8.2% y-o-y

Revenue for the quarter at Rs 604.78 crore was up 13.8% from Rs 531.28 crore in the corresponding quarter last year

RPG Group’s IT arm Zensar reported a drop of 8.2 per cent at Rs 55.96 crore for the first quarter ended June 30, 2014, from Rs 60.94 crore in the same quarter last financial year.

Revenue for the quarter at Rs 604.78 crore was up 13.8 per cent from Rs 531.28 crore in the corresponding quarter last year.

On sequential basis, net profit and revenue for Zensar were marginally up by 1.3 per cent and 0.4 per cent respectively.

During the quarter, Zensar reported dollar revenue growth quarter on quarter of 3.8 per cent from $97.55 million to $101.29 million, and year on year growth of 6.6 per cent.

“The financial year 2014-15 has begun with a good quarter for Zensar. The company has booked and executed excellent business in both applications and infrastructure services in key markets. Many of our new services including Digital Transformation and Total Infrastructure Outsourcing services have received encouraging response from existing and new customers,” said Ganesh Natarajan, Vice Chairman and MD.

The company reported the addition of 12 new significant clients and 103 new employees this quarter.

“It has been a significant quarter for Zensar with the company clocking revenues in excess of $100 million. With the economies reviving worldwide, Zensar is well positioned to capture significant market share,” said S Balasubramanian, Chief Financial Officer.

The company updated that the rebalancing of the infrastructure management (IM) portfolio is on track with a conscious focus on increasing dual shore services with existing and new customers.

In this quarter 33.3 per cent of IM revenues has come from dual shore services in comparison with 30.2 per cent in the previous quarter and 29.9 per cent for FY14.