Zensar Q1 net profit declines 8.2 pct at Rs 55.96 cr

Written by PTI | New Delhi | Updated: Jul 25 2014, 01:20am hrs
Mid-sized software services firm Zensar Technologies today reported an 8.2 per cent fall in its consolidated net profit at Rs 55.96 crore for the April-June quarter.

The Pune-headquartered firm had posted a net profit of Rs 60.94 crore in the first quarter of 2013-14.

Consolidated net sales of the company, however grew 13.8 per cent to Rs 604.78 crore in the first quarter this fiscal against Rs 531.28 crore in the same quarter of 2013-14.

Commenting on the firm's performance, Zensar Vice Chairman and Managing Director Ganesh Natarajan said: "Despite currency fluctuations that impact we have booked and executed excellent business in both applications and infrastructure services in key markets."

The company's deal pipeline robust at about USD 220 million, he told PTI.

"Many of our new services like Digital Transformation and Total Infrastructure Outsourcing services received encouraging response from existing and new customers," Natarajan said.

In US dollars, revenue grew 6.6 per cent to USD 101.29 million in April-June this fiscal from USD 95.04 million in April-June of 2013-14.

Zensar, an RPG Group company, reported US dollar revenue growth of 3.8 per cent quarter-on-quarter from USD 97.55 million in January-March 2014.

"It has been a significant quarter for Zensar with the company clocking revenues in excess of USD 100 million. With the economies reviving worldwide, Zensar is well positioned to capture significant market share," Zensar CFO S Balasubramanian said.

The company reported the addition of 12 new significant clients and 103 new employees in the April-June quarter. As of June 30, 2014, its total headcount stood at 6,894.

Rebalancing of Infrastructure Management (IM) portfolio is on track with a conscious focus on increasing dual shore services with existing and new customers, Natarajan said.

In this quarter 33.3 per cent of IM revenues has come from dual shore services in comparison with 30.2 per cent in the previous quarter and 29.9 per cent in April-June of 2013-14, he added.

On service offerings, Application Management contributed 68 per cent followed by Infrastructure Management (22 per cent) and Products & Licences (10 per cent).

Geography-wise, the US contributed 75 per cent of the revenues followed by Europe (11 per cent), Africa (8 per cent) and Rest of the World (6 per cent).

Shares of the company today fell 3.86 per cent to settle at Rs 439.95 apiece on the BSE.