Zensar Technologies, the leading global IT and BPO services provider, has reported excellent year-on-year profit growth for the year ended 31 March 2009.
Financial highlights:
Consolidated results for the year ended 31 March 2009 vis-`a-vis last year
* Revenue was up from Rs 782.93 to Rs 908.08 Cr showing a 16% growth year-on-year
* Net income grew from Rs 64.03 Cr to Rs 86.56 Cr showing a 35% growth year-on-year
* EPS up from Rs 26.73 to Rs 36.12 , 35% year-on-year growth
For the fourth quarter, revenue was up from Rs 204.00 Cr to Rs 214.76 Cr as against same quarter last year, showing 5% growth. Net income was Rs 23.03 crones against Rs 21.54 for the same quarter last year.
Dr.Ganesh Natarajan, Vice-Chairman and MD of Zensar, said: “The continuing success of Zensar in spite of a tough economic environment is a result of our emphasis on innovation and geography, segment and service de-risking. Our portfolio of services has doubled in the last three years with over 40% of current year revenue coming from new service areas like business intelligence, remote infrastructure management and consulting. We see the current economic crisis as a challenge as well as an opportunity for us to increase our focus on consulting led solutions and the domestic market.”
S Balasubramanium, company CFO, said: “All our businesses and geographies are profitable and growing and we are confident that the growth in both revenue and profit will continue in the current fiscal year.”
Zensar was recently awarded the DHL-CNBC International Trade Award for Outstanding Exporter of the Year for the IT, ITES and Electronics category for the third consecutive year. The company has also has been awarded the Emerging Business Applications Award for 2009 at the Oracle UK Partner Awards ceremony, held recently in London. Oracle recognised Zensar's continued success in delivering innovative solutions and for providing value to its customers using Oracle Applications and Technology. The company has also seen a surge in its Enterprise Applications business and has added 50 new customers to its Oracle business. In the US, the company has built success stories through green field projects using Oracle Business Accelerators, which have been leveraged for faster implementation of enterprise applications and optimisation of costs.
Nitin Parab, Executive Vice-President and Head, Enterprise Application Services (EAS) at Zensar Technologies, said: “With over 1 000 Oracle professionals and significant names in its client list, the company is truly poised to be a Tier 1 player in the Oracle space. The Emerging Business Applications Award by Oracle is a validation of our sustained efforts towards providing business excellence to our customers. We have a strategic partnership with Oracle and this further strengthens our relationship.”
Zensar's focus on innovation has resulted in the launch of the strategic service Impact Sourcing, which is a highly focused offering to help clients formulate and implement strategies to achieve optimisation across the organisation. The Impact Sourcing 10/10 formula means savings of 10% in any chosen process within 10 months of engagement, which has already been pilot tested and is all set to provide enormous value to all customers.
S Balasubramanium, Executive Vice President and Head, Global Transformation Services (EMEIA), said: “We are reaffirming our commitment to the domestic market with focus on key segments of government, education, media and entertainment, healthcare and logistics in India by taking services such as Impact Sourcing and our various partnerships to service the sectors.”
Business update:
* The company has added 16 new customers during the quarter and six new customers in the year with a potential of becoming multimillion-dollar accounts during the year, these include two UK-based utility majors, another leading provider of share registration services from the UK, an insurance major from South Africa and from the US and a hospitality major from the US.
* The company had 4 684 employees as on 31 March 2009. The attrition figures are down to single digits - the best ever reported in the company so far.
* The company has entered into a partnership with Twofour Media, renowned for its wide range of factual entertainment and lifestyle programming. The alliance sets growth strategies and products based on new media, across a wide range of platforms such as television, Internet, radio and film.
The company inaugurated its third Global Delivery Centre in India and sixth in the world yesterday in Pune. The centre will be the innovation hub for the company, which also has its development centres in Hyderabad in India; Slough in the UK; San Jose in the USA; and Gdansk in Poland, which are fully functional and have over 1 000 professionals working out of these centres. All these centres work in truly collaborative frameworks using blueprints for developing and supporting global projects.
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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 4 684 employees with sales and operations presence across US, UK, Germany, Sweden, Finland, Middle East, South Africa, Hong Kong, Singapore, Australia, Japan and China. 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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