Zensar Q3 net profit at Rs 59 cr; sees strong deal pipeline

Mid-sized software services firm Zensar Technologies today reported 26 per cent drop in its consolidated net profit at Rs 59.1 crore for the quarter ended December 2017.
The Pune-headquartered firm had posted a net profit of Rs 80 crore in the year-ago period.
Its revenue from operations, however, grew marginally to Rs 793.7 crore in the said quarter from Rs 786.5 crore in the year-ago period.
Revenues from digital services moved up sequentially from a 36.8 per cent contribution in the second quarter to 38.8 per cent in the reported quarter.
On sequential basis, Zensar's net profit declined 5.7 per cent, while revenue was higher by 4.1 per cent from the July- September 2017 quarter.

"In the year-ago period, we had a forex gain that wasn't there this quarter and that impacted our net profit. However, on operational level, we have delivered exceptional performance like EBIDTA etc," Zensar Technologies CEO and Managing Director Sandeep Kishore told PTI.

Talking about the demand environment, Kishore said the deal pipeline remains strong with the company witnessing growth across verticals like manufacturing and financial services.
"We see more digital transformation deals coming through. Originally what used to be USD 1-3 million in size, they have moved to USD 3-10 million depending on the complexity and impact," he added.
The company had 8,597 employees at the end of December, 2017 with the gross addition of 684 people, while the attrition rate stood at 15 per cent.

During the said quarter, the company added 12 new clients with the number of active clients at 260 at the end of the reported quarter.
In terms of geography, revenues from the the US accounted for 73.3 per cent, Europe 13.5 per cent and Africa 9.6 per cent in the said quarter.
The company has declared an interim dividend of Rs 5 per share.
Zensar has appointed Navneet Khandelwal as chief financial officer of the company effective today. He succeeds Manoj Jaiswal, who had resigned last month.
Shares of the company closed marginally lower at Rs 898.40 apiece on BSE today.