Zensar Technologies, the leading global IT and BPO services provider, has reported excellent profit growth for the quarter ended 30 September 2009.
Financial highlights
Consolidated results for the quarter ended 30 September 2009:
* Net Income was Rs 37.90 Cr showing a growth of 104% quarter-on-quarter and 27% sequentially
* Revenue was Rs 251.17 Cr, a growth of 10 % sequentially and 8% quarter-on-quarter
* Earnings per share stands at Rs 15.81 this quarter
In the second quarter, Zensar has added a total of 24 new customers to its portfolio.
Dr Ganesh Natarajan, Vice-Chairman and MD of Zensar, said: “The company has delivered excellent results and continues to make good progress in all its business units and markets. A strategy of risk mitigation across geographies, vertical domains and service lines that we have pursued over the years has enabled us to deliver this. We are confident Zensar's success will continue in the future as well.”
Emerging markets of India, South Africa and continental Europe continue to be drivers of new business for the company, and with a number of customers ready now to move offshore, which is a significant trend for the company. Among the new wins in these territories are a large total financial services provider; a leading integrator of competitive, innovative and practical business solutions based on information and communication; an independent private London bank, providing banking and investment services; and a provider of talent management, e-recruitment and payroll software solutions to corporate companies across the globe.
New product launches include the Procurement Platform for our BPO Services, which helps customers realise the potential of technology and outsourcing without having to incur capital expenditure and pay only for the number of transactions managed. The launch of ZenAutoPro, Zensar's tool for automated code generation to advance the script development process and to save the overall automation time as compared to traditional Test Automation is yet another outcome of our focus on constant innovation.
In addition to growth in the areas of Package Implementation, Testing and Infrastructure Management, Zensar's new Impact Sourcing service for process and technology transformation with guaranteed results has received an excellent response from the market. In terms of verticals, the company has launched the media and education vertical for the domestic market and these are increasingly seeing visible traction.
Zensar CFO S Balasubramaniam said: “We had committed to cross Rs. 100 crores PAT this year and we are well on our way to exceed this number and build a solid foundation for growth in the coming years.”
Business update:
* The company has been awarded the Outstanding Supplier Partnership Award for 2009 by Danaher Test and Measurement Platform, for outstanding commitment to the relationship.
* The company has hired 300 new recruits in the first six months, of which 95% are billable. The company had 4 815 employees as on 30 September 2009 and retention has been phenomenal at 96% - an Industry benchmark.
* The company has signed a multimillion-dollar deal with Jetstar, a low cost airline arm of airline major Qantas for multiple cost optimisation services.
* Won a million dollar deal in the insurance space in US, and a number of new marquee accounts in Europe and Asia.
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Zensar Technologies
Zensar Technologies is among the top 25 software services providers from India. Zensar is the world's first enterprise-wide SEI CMM Level 5 company and was also later certified as a CMMI Level 5 company with industry expertise that spans retail, manufacturing, banking, insurance and utilities. Zensar has more than 4 700 employees with sales and operations presence across US, UK, Germany, Sweden, Finland, Middle East, South Africa, Hong Kong, Singapore, Australia and Japan. The company delivers comprehensive services in mission-critical applications, enterprise applications, e-business, BPO and knowledge services. The company has developed tools and methodologies, including the proprietary Solution BluePrint (SBP), which enables its clients with innovative business solutions and a rapid 'go-to-market' capability. The company supports Fortune 500 clients with software business solutions that help them compete in the digital economy. (www.zensar.com)
Safe harbour
Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital or acquiring companies outside India, and unauthorised use of our intellectual property and general economic conditions affecting our industry. The company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the company.
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