Zensar Q1 net profit down 6.9% to Rs 73.3 crore

Zensar Technologies on Thursday posted a 6.9 per cent decline in net profit to Rs 73.3 crore for June 2020 quarter. It had reported a profit of Rs 78.7 crore in the year-ago period, Zensar Technologies said in a statement.

Operating revenue fell 7 per cent to Rs 991.2 crore in the reported quarter from Rs 1,066.1 crore in the corresponding period of previous financial year, it added.

In dollar terms, net profit declined 14.5 per cent to USD 9.7 million, while operating revenue fell 14.7 per cent year-on-year to USD 130.8 million.

"In Q1FY21, we have continued our focus to ensure wellness and safety of all our people and to support all our global clients in their digital, cloud and IT systems as the world deals with the pandemic," Zensar Technologies CEO and MD Sandeep Kishore said.

"We have invested into launching several new propositions tailored to help our customers remain relevant during and post the pandemic period," he added.

The company's digital foundation services has performed very well, posting a quarter-on-quarter (q-o-q) growth of 7.6 per cent and hi-tech business grew by 2.9 per cent q-o-q, Kishore said.

"In Q1FY21, we won USD 150 million total contract value (TCV) deals demonstrating the robustness of our new propositions aligned to digital foundation and digital applications. Our current pipeline is at USD 1.5 billion," he added.

The company's global talent has been very productive in the new 100 per cent remote model, working closely with its customers as they embark on the transformation path to recovery and resilience, Kishore said.

"Our focus on operational efficiencies has resulted in an increase in EBITDA despite decline in revenues to 14.4 per cent. Our PAT is at 7.4 per cent of revenue which is an increase from 6.8 per cent in Q4FY20," Zensar Technologies Chief Financial Officer Navneet Khandelwal said.

The company's total headcount stood at 9,027, while attrition was at 13.5 per cent.