Zensar Q3 net profit down over 32 pc to Rs 39.5 cr

Zensar Technologies on Thursday posted a 32.6 per cent fall in net profit to Rs 39.5 crore for the December 2019 quarter.

It had posted a profit of Rs 58.6 crore in the year-ago period, Zensar Technologies said in a statement.

Its revenue, however, was at Rs 1,020.6 crore in the reported quarter from Rs 1,022 crore in the corresponding period of the previous financial year, it added.

In dollar terms, the net profit declined 31.7 per cent to USD 5.6 million, while revenue grew 1.1 per cent to USD 143.3 million in the reported quarter as against the year-ago period.

Digital revenues accounted for 54.1 per cent of the quarter's revenue.

"A combination of furloughs, project-specific customer ramp-downs and continued softness in the retail vertical resulted in a soft quarter. However, our digital business across our cloud and infrastructure and applications continued its growth momentum, registering a growth of 20.2 per cent year-on-year," Zensar Technologies CEO and MD Sandeep Kishore said.

The board of directors has approved an interim dividend of Re 1 per share.

"Our focus on improving operating cashflows continues to show positive results. Rigour on invoicing and collections has ensured an increase in our net cash position by USD 33.4 million quarter-on-quarter and a reduction in the DSO (days sales outstanding) by 9 days q-o-q," Zensar Technologies Chief Financial Officer Navneet Khandelwal said.

The company's total headcount stood at 9,951, while attrition was at 16 per cent.