See steady growth in margins, profit in 4-6 qtrs: Zensar

Anuj: If you could tell us the deals that you have won, what kind of pricing would you enjoy in these deals and how would that translate into your numbers?

A: Pricing is very good because we have been working on our business model for the last three-four quarters and today we have a very good story in terms of the enterprise applications part of our business as well as the infrastructure management. On top of that we are now doing a lot of work in digital transformation, which is helping our customers to use all the new technologies - cloud, social media mobility etc. So because of this, if you look at the five deals that we have signed in the last four weeks or so, all of this has been at excellent pricing and in terms of putting us firmly as a partner of choice for some of these companies, it has been very good. So things are very good at this point of time.

Sonia: How will all of this help in terms of improving your margin profile because you have seen a steady growth in your margins currently at around more than 14 percent, do you think you could better that?

A: Certainly that is the idea because as you change the profile of your business and you move from projects to much more of end-to-end managed services, which is our proposition then you are less dependent on which people you put or which is a specific technology you work on. So clearly our goal is not only to substantially improve revenues, it has been a little low because of the turnaround we were doing in our infrastructure management (IM) business but both revenues and margins and the overall profits should certainly see steady growth in the next four-five-six quarters.

Anuj: Last quarter for example, you had double-digit revenue and profit growth but now the base effect will catch up so what kind of growth trajectory can we expect going forward?

A: I don’t want to give any projections but certainly in terms of growth in constant currency - we cannot predict where the exchange will go but in constant currency terms we are looking at substantial growth. As I said every quarter for the six quarters because the business is there, the pipeline is extremely strong in all sides of our business and in all the key markets, US, UK, Europe and Africa. So I don’t have any concerns at all about the business the way it is looking at and in to FY15 and hopefully beyond.

Sonia: These orders that you saw which were the key geographies that these orders came in from and going ahead what is the order pipeline looking like?

A: If you look at the last three months, the orders came in from Africa, from Australia, from Europe that is continental Europe as well as US. The last five orders that we have reported are interestingly all from North America. So it is becoming our very strong geography. We have a fully leveraged and a fully capable business in the US. So I think US be still our biggest market but if you look at the deal flow in fact the growth in Europe last quarter sequentially was almost 11.5 percent. So I would expect that Europe will also come to the party and we will have good business in all the three-four segments.