Zensar Technologies Q1 earnings: Profit up 108% YoY, revenue grows 2%

Overall, the management remained cautious in terms of demand outlook amid uncertainties in deal closures and macro-economic headwinds in line with the rest of the industry.

Zensar Technologies reported a 108 percent year-on-year (YoY) increase in net profit to Rs 156 crore for the quarter ended June 30, compared to the same quarter in the last fiscal year, despite a tough business environment for the IT services sector globally.

Net profit was up 31 percent on a QoQ basis. The consolidated revenue for the quarter stood at Rs 1,227 crore registering an increase of 2 percent YoY, it was up 1.15 percent on a QoQ basis. The operating margin expanded QoQ to 19 percent compared to 14 percent last quarter.

Manish Tandon, CEO and Managing Director of Zensar Technologies said, “In Q1FY24, we saw good growth in revenue and improved margins despite the macro challenges within the industry... In line with our stated strategy, we continue to defocus on pass-through revenues. We have witnessed good improvement in margins, and a portion of these are being reinvested into the business."

"We remain committed to allocating resources for the skill enhancement of our employees and strengthening our diverse pool of talent. Through these strategic initiatives, we aim to drive client success and foster sustainable business expansion,” he added.

On a year-on-year basis, the BFSI segment grew 13.2 percent in constant currency (CC) terms, the hi-tech and emerging segment saw 4 percent decline in CC terms while manufacturing and consumer services saw a decline of 1.3 percent on CC terms.

The IT firm's attrition rate declined to 15.9 percent from 19.8 percent in the previous quarter on the last twelve months (LTM) basis.

Overall, the management remained cautious in terms of demand outlook amid uncertainties in deal closures and macro-economic headwinds in line with the rest of the industry.