Zensar Tech slumps 5% after Q3 PAT declines to Rs91cr

25 Jan 2022 , 09:30 AM

Zensar Technologies Limited, a leading experience engineering, and technology solutions company, announced its consolidated financial results for its third-quarter ending December 31, 2021, of the fiscal year 2021-2022.

In Q3FY22, the company reported consolidated revenue of 1,102.5cr, a yoy growth of 18% from Rs934.4cr. PAT stood at Rs91cr a decline of 34% yoy from Rs138cr. The company reported net cash of $168Mn in Q3FY22.

On a quarterly yoy basis, the US region reported growth of 20.8%, the Europe region reported growth of 23.7%, and the South Africa region reported growth of 8.3%.

From a vertical perspective, the Banking vertical posted a quarterly yoy growth of 76.5%, while the Insurance vertical posted a quarterly yoy growth of 8.9%. The Consumer Services vertical posted a quarterly yoy growth of 26%, and the Hi-Tech and Manufacturing vertical reported a quarterly yoy growth of 7.1%.

Ajay S. Bhutoria, CEO and Managing Director, Zensar Technologies, said, “Our revenue growth of 19.8% quarterly yoy reinforces the value our clients place on our services. Our efforts in the Banking vertical are bearing fruit with a 76.5% quarterly yoy growth. Similarly, our Consumer Services business grew by 26% yoy during the same quarter. These outcomes are the result of initiatives launched in the first half of the year and include the integration of M3bi into our overall strategy.”

Adding further, he said, “To meet increasing demand, we have stepped up investments in strengthening our talent pool by expanding lateral hiring and hiring from campuses, as well as by upskilling our existing workforce. As always, the safety and well-being of our associates continue to be a top priority as we continue to work largely from home in all locations.”

Navneet Khandelwal, Chief Financial Officer, Zensar Technologies, said, “Increased operational efficiency has resulted in improved working capital by reducing our DSO in Q3FY22 to 78 days, down from 82 days in Q2. Our new offerings across all regions continue to bear positive results. Our US region reported robust growth of 20.8% quarterly yoy and 4.4% sequential qoq, while Europe posted quarterly yoy growth of 23.7% and sequential qoq 6.1%. Meanwhile, Africa posted 8.3% quarterly yoy growth. We continue to streamline operational metrics and fresher intake on margins.

Additionally, the Board of Directors of Zensar Technologies Ltd at its meeting held on January 24, 2022, has recommended payment of Interim Dividend at the rate of Rs1.5 per Equity Share for the financial year 2021-22.”

At around 9.32 am, Zensar Technologies Ltd was trading at Rs394.15 per piece down by Rs22.15 or 5.32% from its previous closing of Rs416.30 per piece on the BSE.