Zensar's constant currency revenues grow 12.3% QoQ in Q2FY22

The company's PAT stood at $12.8Mn or 9.0% of revenues, a sequential QoQ decline of 181 bps.

Oct 27, 2021 04:10 IST India Infoline News Service

Zensar Technologies, a leading experience engineering and technology solutions company, announced its consolidated financial results for its second quarter ending September 30, 2021, of the fiscal year 2021-2022.

Financial Highlights:
• In Q2FY22, the company reported revenue of $141.9Mn, a constant currency sequential QoQ growth of 12.3%
• PAT stood at $12.8Mn or 9.0% of revenues, a sequential QoQ decline of 181 bps
• The company reported net cash of $160.8Mn in Q2FY22
• Sequential QoQ, the US region reported growth of 11.9%, UK region reported growth of 11.2%, and South Africa reported growth of 10.0%
• From a vertical perspective, on a sequential QoQ basis, the Banking vertical posted growth of 37.0%, while Insurance grew by 12.2%. Revenues from Hi-Tech clients grew sequentially by 3.9% QoQ, while Manufacturing posted a sequential QoQ growth of 6.8%. The Consumer Services vertical posted a sequential QoQ growth of 18.1%

The stock ended at Rs480.60 up by Rs30.5 or 6.78% from its previous closing of Rs450.10 on the BSE. The scrip opened at Rs436.30 and touched a high and low of Rs498 and Rs432.65 respectively.

Ajay S. Bhutoria, CEO and Managing Director, Zensar Technologies, said, "Q2FY22 has been one of our strongest quarters in the recent past, with revenues seeing a sequential QoQ growth of 12.3% on a constant currency basis. This performance is bolstered by broad-based growth across all geographies, service lines, and verticals. Our regions have posted strong performances, with new clients being added and incremental business being driven from existing clients. Our clients continue to see in us reliable, future-driven partners as we bring in world-class processes and learnings."

"We continue to build competency and scale in focus strategic growth opportunities (SGOs) such as Experience Services, Advanced Engineering and Data Analytics in addition to our core services. We added new leadership across our markets and SGOs, bringing in diverse industry experience and vision. As our business expands, we are transforming demand fulfilment and talent acquisition to stay competitive in a highly competitive talent market,” he added.

Navneet Khandelwal, Chief Financial Officer, Zensar Technologies, said, "We have delivered a strong quarter with robust revenue growth and our headcount crossing 10,000 associates. Our PAT has increased by 8.3% on a YoY basis. Our net cash position continues to be strong. We also completed salary increments across the board effective July 1, 2021, which was the second such hike in this calendar year."

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