Zensar Q1 Net Declines 8.2 Per Cent to Rs 55.96 Crore
New Delhi: Zensar Technologies on Thursday reported an 8.2 per cent fall in consolidated net profit at Rs 55.96 crore for the quarter ended June.
The Pune-headquartered software services firm had posted a net profit of Rs 60.94 crore for the corresponding quarter a year ago.
Consolidated net sales of the company, however, grew 13.8 per cent to Rs 604.78 crore in the first quarter of the ongoing fiscal year from Rs 531.28 crore in the corresponding quarter of 2013-14.
"Despite currency fluctuations that impact we have booked and executed excellent business in both applications and infrastructure services in key markets," Zensar vice chairman and managing director Ganesh Natarajan said.
The company's deal pipeline robust at about $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," Mr Natarajan said.
In US dollars, revenue grew 6.6 per cent to $101.29 million in April-June this fiscal from $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 $97.55 million in January-March 2014.
"It has been a significant quarter for Zensar with the company clocking revenues in excess of $100 million. With the economies reviving worldwide, Zensar is well positioned to capture significant market share," Zensar CFO S Balasubramanian said.
The company reported 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 shoreservices with existing and new customers, Mr Natarajan said.
In this quarter, 33.3 per cent of IM revenues came 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 in the company, on Thursday, ended at Rs 439.95 apiece on the BSE, down 3.86 per cent from the previous close.
