Zensar Technologies soars 10% to hit 52-week high on strong Q4 results

Shares of Zensar Technologies rallied over 10 per cent to hit a 52-week high of Rs 341 apiece in Friday's intra-day trade, after the company's gross profit rose 11.2 per cent year-on-year (YoY) to Rs 387 crore in the January-March quarter of FY23 (Q4FY23). 
 

The Pune-based company clocked 5.1 per cent YoY growth in operating revenue to Rs 1,212 crore in Q4FY23 from Rs 1,153 crore, in the year-ago period. Vertical-wise, hi-tech, manufacturing, banking, and insurance were the top revenue contributors, in the range of 16 per cent to 31.1 per cent in the March quarter. 
 

For the entire fiscal year (FY22-23), operating revenues jumped 14.2 per cent YoY to Rs 4,848 crore for the IT company, whereas gross profit gained 2 per cent to Rs 1,348 crore. 

Earnings before interest, tax, depreciation, and amortisation (Ebitda), meanwhile, grew 7 per cent YoY to Rs 175 crore in Q4FY23, while it was up 30.4 per cent quarter-on-quarter (QoQ) from Rs 134 crore in Q3FY23.
 

Commenting on the March quarter financial performance, the management said that continuous rigor in operational efficiencies helped improve the company's margins. 
 

"We had one of the best day-sales-outstanding (DSO) in recent quarters, and collections were healthy for the company. DSO stood at 74 days for the quarter, improved by 6 days QoQ.Our order book for Q4FY23 stood at $174.9 million, seasonally high growth of 34 per cent over the last quarter," said Sachin Zute, Chief Financial Officer, Zensar Technologies.
 

That apart, the board of directors recommended a final dividend of Rs 3.50 per equity share, subject to the approval of shareholders. Earlier, in January, the board had declared an interim dividend of Re 1.50 per equity share.
 

At the bourses, so far this calendar year (CY23), shares of Zensar Tech have soared 60 per cent, as against 1 per cent rise in the S&P BSE Sensex.