Zensar Technologies Posts ₹176.4 Crore Q4 Profit

28 Apr 2025 , 12:11 PM

Zensar Technologies has registered a 1.8% year-on-year (YoY) increase in net profit in the fourth quarter ended March 31, 2025, with net profit increasing to ₹176.4 crore from ₹173.3 crore posted during the same quarter of the earlier fiscal. Operating revenue for Q4 FY25 was at ₹1,359 crore, showing a 10.5% rise from ₹1,229.7 crore reported during the same period last year.

The company’s operating performance improved as EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) grew 4.7% year-on-year, reaching ₹212.7 crore in the fourth quarter compared to ₹203.2 crore in the same quarter of the previous year. EBITDA margin for the quarter stood at 15.7%, slightly lower than the 16.5% margin recorded in the corresponding period of the previous fiscal year.

In terms of dollars, Zensar Technologies reported Q4 FY25 revenue of $156.8 million, with a sequential constant currency growth of 0.9%, even though there was a small quarter-on-quarter fall of 0.1% in reported currency. The gross margins of the company sequentially increased by 20 basis points to 30.3% in the fourth quarter, while the EBITDA margin was 15.6% in the same quarter.

For the entire fiscal year FY25, Zensar Technologies achieved total revenue of $624.5 million, which was a 5.1% year-on-year increase in constant currency as well as 5.4% increase in reported currency. The firm remained in a solid financial position and ended FY25 with a strong net cash position of $290.5 million.

Geographically, the United States market improved by 0.3% sequentially and 6.5% year-on-year in constant currency terms during Q4 FY25. The European market posted a strong performance with a 2.5% sequential growth and a 10.0% year-on-year growth in constant currency. The African market recorded a sequential growth of 0.9%, while it fell 1.7% on a year-on-year basis in constant currency.

Across business verticals, the Banking and Financial Services segment grew 3.4% sequentially in constant currency, registering positive momentum in the quarter. The Telecommunications, Media, and Technology segment had a sequential rise of 1.7% in constant currency in Q4 FY25.

The Manufacturing and Consumer Services vertical had a sequential fall of 2.6% in constant currency, with a softer performance. The Healthcare and Life Sciences vertical also recorded a sequential fall of 1.4% in constant currency terms in the fourth quarter.

Manish Tandon, Managing Director and Chief Executive Officer of Zensar Technologies, emphasized that the company recorded its highest-ever order book in the quarter, crediting the performance to strategic investments and robust client confidence.

Tandon further added that Zensar’s concerted efforts in mining new accounts have begun yielding results with visible traction in client acquisitions.He also highlighted the company’s better employee attrition rate, attributing it to Zensar’s people-centric culture and its focus on long-term association with its people.