Higher tax outgo flattens Zensar Q4 net at Rs 39 crore
Moody's said it expects China's real economic growth rate to ease to a range of between 7.5-8.5 percent in 2012 and 2013 from the more heady 10.3 percent pace of the last decade.
RPG Group's software arm Zensar Technologies yesterday reported a muted 4% rise in net profit at Rs 39.3 crore for the fourth quarter ended on March 31 on higher tax outgo.
The poor net income numbers came despite the Pune- based company reporting a 32% spike in revenue and 62% jump in pretax profit to Rs 494 crore and Rs 56.99 crore respectively.
Zensar Vice-Chairman and Managing Director Ganesh Natarajan attributed the lower profit numbers to a large tax outgo during the quarter by way of deferred tax payment.
"There was a 32.5% spike in deferred tax at Rs 57 crore for the fiscal and Rs 17.6 crore in the reporting quarter," Natarajan told PTI over phone. Against this, the company had an exceptional deferred tax gain of Rs 10 crore in Q4 of FY11, he added.
However, he sounded bullish about the current fiscal, saying Zensar, which nets almost 75% of profit from its US business, will grow much above the Nasscom projection. "We see both our profit as well as revenue growing by at least 15-18%."
The Nasscom projection is a bit downcast this year at 11-14%. For the full fiscal, the IT firm's revenue rose to Rs 1782.48 crore from Rs 1138.30 crore, a growth of 56.6%, while net profit grew from Rs 131.73 crore to Rs 158.71 crore, a 20.5 per cent rise.
During the fiscal, Zensar and its subsidiaries added 112 new clients, taking the overall headcount to 7,121.
Natarajan said of the 17 new additions during the quarter, 10 came from the US, two each from India, South Africa and Britain and one from Australia.
