Zensar Q4 net profit plunges 84% to Rs 11 cr on currency woes

Mid-sized software services firm Zensar Technologies today saw a sharp fall of over 84 per cent in consolidated net profit at Rs 10.73 crore for the March quarter, hurt by currency fluctuations.

The Pune-headquartered firm had posted a net profit of Rs 68.96 crore in the year-ago period.

"The key markets of Zensar, the UK and Africa, performed reasonably well, while the US was muted. The profits for the quarter were impacted due to strong currency fluctuations and a few one-time costs," Zensar Technologies Chief Financial Officer Manoj Jaiswal said.

Its total income from operations fell marginally to Rs 743.77 crore in January-March last fiscal, from Rs 744.71 crore in the same quarter of 2015-16.
 

The company registered a net foreign exchange loss of Rs 26.54 crore in the said quarter compared to a net forex gain of Rs 4.52 crore in the year-ago period.

Application management services accounted for revenues of Rs 610.8 crore while that of infrastructure management services stood at Rs 132.51 crore.

The Zensar board has recommended a final dividend of Rs 7 per share for 2016-17.

The stock closed at Rs 838.35, down 8.56 per cent, on the BSE.