Highlights:
Consolidated results for the quarter ended 30 June 2012:
1. Revenue grew to Rs 544.29 Crore for the quarter ended 30 June 2012; with a year-on-year growth of 36.5%.
2. Net profit after tax was Rs 54.56 Crore for the quarter ended 30 June 2012, with a year-on-year growth of 101.5%.
3. Earnings per share (EPS) was Rs 12.57 for the quarter ended 30 June 2012; with a year-on-year growth of 101.4%.
On a quarter-on-quarter basis, Zensar's revenue grew 10.2%, with focus verticals of manufacturing and insurance growing by 15.7% and 16.6% respectively. Net profit grew 38.8% quarter-on-quarter.
Dr Ganesh Natarajan, CEO and Vice-Chairman, said: “Q1 has been an excellent quarter and demonstrates the robust and risk-mitigated nature of our business. Our strong focus on key verticals, diversified geographies and innovation in all our services will ensure that we meet our guidance of 15% to 18% growth in FY13.”
Zensar's robust capabilities in multi-shore infrastructure management and applications services have been strengthened through the company's investments in cloud, mobility and enterprise social media solutions, providing a true consultancy-led transformation partnership to clients. In this quarter, Zensar has reported 20 new wins, some of which are multimillion-dollar contracts across verticals.
“For the second time in a row, Zensar has been featured among the top 12 Indian IT companies in the latest 'Global Outsourcing 100' compiled by the International Association of Outsourcing Professionals (IAOP). Around the world, we are helping our clients realise business improvement and true business value through our focus on new models and service offerings,” said Ajay Bhandari, Chief Corporate Development Officer.
Other highlights:
In the manufacturing vertical, the company has bagged a deal in R12 implementation and master data management, with one of the largest private electrical contractors and one of the world's largest clothing manufacturers based in the US.
Zensar has recently been selected by one of the leading specialty retail stores for children's apparel in USA for an Oracle R12 upgrade. Zensar will also support a leading bookstore chain in the Asia Pacific region in the areas of supply chain management and SDLC, and function as its extended IT arm. The company has signed a new deal with an eminent accountancy body in South Africa for a project on IT support and integration.
Zensar has also entered into a multimillion-dollar deal in infrastructure management with one of the leading worldwide providers of enterprise-class, cloud-enabled hosting, managed applications and services based in the US for a project on data centre migration. Zensar will also deliver mission-critical IT infrastructure services to a leading provider of private student loan credit unions, and schools in the US.
In this quarter, Zensar has added a total of 165 associates, taking the total associate count to 7 286. The company has also launched several initiatives to increase operational efficiencies and associate productivity, which will offer customers a transformed business proposition.
Additionally, the company has designed and implemented various strategies to develop, grow and retain associates to ensure smooth delivery of client operations.
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Zensar Technologies (http://www.zensar.com)
Zensar Technologies is among the top 20 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, utilities, healthcare and life sciences. An RPG Group company, Zensar has more than 6 000 employees with sales and operations presence across US, UK, Germany, Sweden, Middle East, South Africa, Singapore, Australia, China 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.
RPG Enterprises (http://www.rpggroup.com)
RPG Enterprises is one of India's largest industrial conglomerates. The group consists of over 15 companies managing diverse business interests in the areas of tyre, infrastructure, IT and speciality. Established in 1979, RPG Enterprises is one of India's leading business groups with a turnover of Rs 15 000 crore.
Safe harbour statement
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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