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Zensar Technologies Q2 profit slips 16% to Rs 80 crore, revenue up 13%

BusinessToday.In     October 21, 2019

Zensar Technologies, a part of RPG group, on Monday reported a 16.1 per cent year-on-year (y-o-y) decline in net profit at Rs 79.9 crore for the second quarter ended September 30, 2019.

"The software and services company had posted a net profit of Rs 95.2 crore in the same quarter last year," Zensar Technologies said in a filing to the Bombay Stock Exchange.

The revenue, however, jumped by 13.3 per cent to Rs 1,072.3 crore during Q2FY20, as against Rs 946.5 crore in Q2FY19.

The company's Earnings before Interest, Tax, Depreciation And Amortisation (EBITDA) rose 17.7 per cent y-o-y to Rs 150 crore in July-September quarter of FY20, while EBIT improved by 6.2 per cent to Rs 111.50 per cent in Q2FY20.

In dollar terms, the total revenue grew 12.8 per cent to $152.3 million from $135 million in the year-ago period, while the net profit declined 16.4 per cent to USD 11.3 million.

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Digital revenues grew 25.2 per cent year-on-year and accounted for 50.1 per cent of the quarter's revenue.

Commenting on Q2 results, Zensar Technologies CEO and MD Sandeep Kishore said, "Zensar's year-on-year revenue growth continues to be strong with an increase of 14.1 per cent on a constant currency basis. Digital continues to maintain consistent momentum and grew by 25.2 per cent year-on-year."

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The company said its core business operating margin is maintained at 14 per cent, despite wage hike in the quarter gone by."The wage hike in Q2 was negated by improved operational efficiencies. The quarterly revenue performance was impacted by the completion of two client-specific programs," it said.

As of September 30, 2019, the company's total headcount stood at 10,219, while attrition was at 17 per cent.

Ahead of the Q2 numbers, shares of Zensar Technologies closed at Rs 213.35, up 1.23 per cent, on the BSE.

Edited by Chitranjan Kumar

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