Zensar Technologies, the leading global IT and BPO services provider, has reported excellent profit growth for the quarter ended 30 June 2009.
Financial highlights:
* Consolidated results for the quarter ended 30 June 2009
* Revenue was Rs 229.23 Cr, a growth of 9% over the same quarter last year and 7% sequentially
* Net Income was Rs 29.74 Cr, a growth of 20% q-o-q and 29% sequentially
* Earnings per share stands at Rs 12.41 this quarter
In the first quarter, Zensar has added a total of 16 new customers to its portfolio; six of the new accounts have the potential of becoming multimillion-dollar accounts this year.
Dr Ganesh Natarajan, Vice-Chairman and MD of Zensar, said: “It is a year well begun where all our businesses and territories have delivered an excellent performance. The highlight of the quarter has been a 17.8 million dollar win in the insurance space in US, and a number of new marquee accounts in Europe and Asia have given us the confidence that we will overcome recessionary trends in key markets and continue to do well.”
New services introduced in the last year by Zensar continue to bring in new business, especially in the areas of package implementation, testing, infrastructure management and KPO. Apart from the significant success in insurance, other key wins include an international financial services company in the UK, and a total solutions company providing packaged application to the financial services and government sector in South Africa. Package implementation wins include one of the leading retailers in the Middle East; a technology leader providing reliable infrastructure; a manufacturer of safety and restraint systems for automobiles; and a communications infrastructure major in the US.
The company has also seen a surge in its enterprise applications business and is now Oracle Certified Advantage Partner for Middle East - the highest level of partnership status in the region. Zensar has also won the Emerging Business Applications Award for 2009 at the Oracle UK Partner Awards (London) in April 2009. In the US, the company has built success stories through Greenfield projects using Oracle Business Accelerators, which have been leveraged for faster implementation of enterprise applications and optimisation of costs.
With the global economic order that is changing every day, the company has also launched an innovative service called 'Impact Sourcing' for its global customers facing pressures on cost and revenue. This highly focused offering will help clients in the current recession to formulate and implement strategies to achieve maximum value for their IT investments through optimisation across the organisation. The service is being simultaneously offered in the USA, Europe, Japan and India, and the company expects to garner over 40 million USD of new business through this innovative service in the next 10 months.
The company has named Vivek Gupta, Executive Vice-President and a long-term member of the management team as Chief Executive of India operations. “We have embarked on significant strengthening of all our offshore services and will also increase our emphasis on getting business in the domestic market in the chosen areas of e-government, healthcare and education. In India, technology expenditure is on the upswing and companies are increasingly looking at transformation solutions that will significantly increase efficiencies. Zensar intends to be a leading player in this market,” said Vivek Gupta.
Business update:
* CNBC Award for Best Exporter in IT/ITES, in the medium scale category for the third year in succession April 2009
* Inaugurated its third Global Delivery Centre in Pune, India in April 2009
* People Engagement is at a phenomenal retention rate of 97.2 % - an industry benchmark
* The company has also developed an indigenous Carbon Calculator. This tool to gauge individual's carbon emissions has been launched across the organisation and will help Zensarians calculate their individual carbon footprint and bring about a reduction in their carbon emissions.
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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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