Zensar Q4 net profit dips marginally to Rs 70.67 cr

Mid-sized software services firm Zensar Technologies today reported marginal dip in consolidated net profit at Rs 70.67 crore for the March quarter, weighed down by lower revenue from its maintenance services business.
The Pune-headquartered firm had posted a net profit of Rs 71.80 crore in the year-ago period.
Its consolidated revenue rose by 12.4 per cent to Rs 751.39 crore in the January-March quarter last fiscal from Rs 668.09 crore in the same quarter of 2014-15.
"We are not so much worried about the maintenance business as the focus is on digital and e-commerce services that has shown significant growth in FY16, representing 27 per cent of the company's revenue," Zensar Technologies CEO and MD Sandeep Kishore said.

The company won several new marquee clients in the e-commerce space in chosen industries and has delivered good traction in new digital services, he added.
For the entire 2015-16 fiscal, Zensar reported a net profit of Rs 311.90 crore and revenue at Rs 2,978.04 crore.

The retail business has also achieved significant growth enabled by these key digital levers, he said.
Zensar's application management services business grew 14.3 per cent in 2015-16 fiscal from the preceding fiscal, while infrastructure management services (IMS) declined 7.4 per cent.
In IMS, maintenance was down 17.2 per cent, while services declined by 1.3 per cent.

Retail and consumer services vertical grew 52.8 per cent last fiscal, while financial services and emerging verticals were up 4.8 per cent and 57.8 per cent, respectively.
Zensar CFO S Balasubramaniam said in addition to growth in key business sectors, the company has adapted well to the shifting changes in the business environment.
"We have sharpened efforts towards investments, cost optimisation and efficiency, to ensure we continue to deliver consistent profitability," he added.
During the said quarter, the company added 18 new clients but the number of active clients came down to 194 at the end of the reported quarter from 204 in March 2015, and 211 in December 2015 quarter.

Shares of the company today closed 0.63 per cent up at Rs 996.45 apiece on BSE.
In a separate filing, Zensar said its Board has decided for liquidation of wholly-owned foreign enterprise in China.