Zensar Technologies reports 120% YoY PAT growth
Enterprise services continue as the company’s key growth driver
Pune, October 22, 2013: Zensar Technologies Ltd has reported excellent growth in profits in quarter ended September 30, 2013. The company’s profits after tax grew significantly year on year, by 120% from Rs. 32.17 Crore to Rs. 70.63 Crore, and the revenues grew by 9.8% year on year, from Rs. 537.31 Crore to Rs. 589.77 Crore.
Dr Ganesh Natarajan, Vice Chairman and CEO, said, “With industry leading sequential growth of 5.8% in constant currency terms in our key markets of USA, Europe and Africa, our services business continues to be robust”.
S. Balasubramaniam, Chief Financial Officer, said, “With our balanced portfolio of services in mature and emerging technologies, we are rightly positioned to capitalize on the current upswing in the economy, in our key markets”.
Nitin Parab, Chief Executive, Enterprise Transformation Services (ETS) said, “All three industry segments of Zensar - Manufacturing, Retail and BFSI are showing significant account expansion and new logo acquisition in key markets. We have embarked upon a new growth plan in emerging markets with a combination of existing and new services. The signing of five deals of over $5Mn in this financial year is a validation of our new business development strategy.”
Vivek Gupta, Chief Executive, Global IM Services, said "With renewed emphasis on winning more of the higher profitability maintenance and services contracts, we are aiming to develop an IM Business in excess of USD 33 Million quarterly business by the end of the year".
Business Highlights
1. Zensar has signed 12 significant deals this Quarter including : o a market leading innovator of lighting products o a leading manufacturer of engineering solutions in data and power sectors o a five-year total infrastructure outsourcing deal with a world leading direct selling company o a leading financial services company o one of the largest banks in South Africa o an investment management powerhouse in Africa
2. Growth Markets: Reiterating the company’s commitment to South Africa, Zensar entered into an agreement with a majority black owned investment business Kapela Fund 1 (Kapela) and The Tomorrow Trust to set up a new Broad Based Black Economic Empowered company in South Africa. Zensar will be the majority shareholder of the company expanding its presence in South Africa with services in many areas to new customer segments. This venture will help Zensar expand its footprint into Government contracts and also to enhance the company’s standing in the Broad-Based Black Economic Empowerment (B-BBEE) code of the Government.
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3. New Services: As per the McKinsey-NASSCOM survey, 52% of companies with captives in India intend to increase their offshore penetration by 15-30% over the next two to three years. It is also expected that almost all Fortune 500 companies will establish their own captives and/or shared services centers by 2020. Recognising the significant market potential in this space, the company has established its ‘Insourcing Services’ unit that specialises in partnering with large multinational organisations to jointly build enhanced value propositions by utilising global talent and leveraging a global footprint.
4. Digital Enterprise Partner Ecosystem: Zensar, through its unique initiative, brought together product start- ups in India, evaluating their innovations, to further help take the shortlisted products global. These start- ups are in the new age technology areas of SMAC (Social, Mobility, Analytics and Cloud). With the emergence of these new technologies, organisations today are looking at integrating applications across the enterprise seamlessly, with the ability to dashboard and allow for easy anywhere-anytime accessibility.
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Consolidated Financial Data - Fact Sheet Figures in Rs. Lacs Quarter ended Sep 30 Variation % Quarter Growth in Q2 FY 2014 Particulars ended June (%) over Q1 FY 2013 2012 30,2013 2014 INCOME Software and BPO services 58977 53731 10% 53128 11% TOTAL INCOME 58977 53731 10% 53128 11%
Software development and business process management expenses 40226 37798 6% 36167 11%
GROSS PROFIT 18751 15933 18% 16961 11%
Opex 9494 8602 10% 9767 -3%
OPERATING PROFIT BEFORE INTEREST, DEPRECIATION & AMORTISATION AND BEFORE MINORITY INTERESTS 9257 7331 26% 7194 29%
Interest 287 257 11% 269 6% Depreciation and amortisation 954 774 23% 918 4%
OPERATING PROFIT AFTER INTEREST, DEPRECIATION & AMORTISATION AND BEFORE MINORITY INTERESTS 8016 6300 27% 6007 33% % to Total Revenue 13.6% 11.7% 11.3%
Other Income 1192 843 41% 457 161% Exchange Gain/(Loss) 1445 -2118 168% 2807 -49%
NET PROFIT BEFORE TAX AND MINORITY INTERESTS 10653 5025 112% 9271 15%
Provision for Taxation 3590 1,808 99% 3,177 13%
NET PROFIT AFTER TAX AND BEFORE MINORITY INTERESTS 7063 3217 120% 6094 16%
Minority Interests - - -
NET PROFIT AFTER TAX AND MINORITY INTERESTS 7063 3217 120% 6094 16%
EARNING PER SHARE* (Equity shares, per share Rs. 10/- each ) Basic 16.19 7.40 119% 13.98 16% Diluted 15.92 7.24 120% 13.71 16%
Note : Previous year's figures are regrouped wherever necessary
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Details of Revenue
REVENUE BY GEOGRAPHICAL SEGMENT (In %) Quarter ended Year to Date Particulars 30-Sep-13 30-Jun-13 30-Sep-12 30-Sep-13 30-Sep-12
USA 75% 76% 71% 76% 72% Europe 9% 8% 9% 8% 9% Africa 10% 9% 9% 9% 8% Rest of the World 6% 7% 11% 7% 11% Total 100% 100% 100% 100% 100%
REVENUE BY SERVICE OFFERING (In %) Quarter ended Year to Date Particulars 30-Sep-13 30-Jun-13 30-Sep-12 30-Sep-13 30-Sep-12
Application Management Services 68% 65% 66% 67% 65% Infrastructure Management Services 23% 23% 22% 23% 21% Products & Licences 9% 12% 12% 10% 14% Total 100% 100% 100% 100% 100%
REVENUE BY PROJECT TYPE (In %) Quarter ended Year to Date Particulars 30-Sep-13 30-Jun-13 30-Sep-12 30-Sep-13 30-Sep-12
Fixed Price 37% 37% 30% 37% 29% Time & Materials 36% 33% 40% 35% 40% Support Services 18% 18% 18% 18% 17% Product Sales 9% 12% 12% 10% 14% Total 100% 100% 100% 100% 100%
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Revenue By Industry (In %) Quarter ended Year to Date 30-Sep-13 30-Jun-13 30-Sep-12 30-Sep-13 30-Sep-12 Manufacturing , Retail & Distribution 63% 61% 53% 63% 53% Insurance, Banking & Finance 20% 20% 21% 20% 20% Govt , healthcare & Utilities * 2% 2% 11% 2% 10% Alliance & Others 15% 17% 15% 15% 17%
Total 100% 100% 100% 100% 100% (* Revenue data for the quarter & Year to Date 30th Sep 2013 is regrouped post reclassification) CLIENT DATA Quarter ended Year to Date 30-Sep-13 30-Jun-13 30-Sep-12 30-Sep-13 30-Sep-12 Number of million dollar Clients* 1 Million dollar + 47 49 43 47 43 5 Million dollar + 6 6 7 6 7 10 Million dollar + 1 1 2 1 2 20 Million dollar + 1 1 1 1 1 Client Contribution to Business Revenue- top 5 clients 39% 37% 35% 38% 35% Revenue- top 10 clients 46% 43% 42% 44% 41% Account receivables-(in days) 61 66 59 61 59
*LTM(Last twelve months) Revenue
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Effort & Utilization (In %) Quarter ended Year to Date 30-Sep-13 30-Jun-13 30-Sep-12 30-Sep-13 30-Sep-12 Revenue Onsite 67% 68% 72% 68% 71% Offshore 33% 32% 28% 32% 29% Total 100% 100% 100% 100% 100% Utilization
Including Trainees 80% 81% 82% 80% 82% Employee Headcount Quarter ended Year to Date 30-Sep-13 30-Jun-13 30-Sep-12 30-Sep-13 30-Sep-12 Technical - Onsite 1470 1426 1431 1470 1431 Technical - Offshore 4097 4023 4103 4097 4103 Technical - BPO / Others 506 522 659 506 659 Marketing 156 149 154 156 154 Support 428 399 478 428 478
TOTAL 6657 6519 6825 6657 6825
Employee Metrics Subsidiaries (Nos.) Quarter Ended Year to Date Sep 30th, June 30th, Sep 30th, Sep 30th, Sep 30th, Subsidiaries 2013 2013 2012 2013 2012 Zensar Technologies Inc. 635 593 596 635 596 Zensar Technologies (Singapore) Pte Limited 62 66 104 62 104 Zensar Technologies (Shanghai) Co. Limited 38 44 40 38 40 Zensar Technologies (UK) Limited 184 178 136 184 136 Zensar Advanced Technologies Limited 13 16 14 13 14 Zensar Technologies IM , Inc. 333 329 299 333 299
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INFRASTRUCTURE (as on Sep 30, 2013) Completed Work in Progress Built-Up Built-Up Area No. of Area No. of (Sq Ft) Seats (Sq Ft) Seats Pune Kharadi Campus Development Centre 352968 3274 0 0 Corporate Block 41772 180 0 0 IT Tower 93085 1236 0 0 EON 34422 465 0 0 EON-II 0 0 31776 475 Total Pune 522247 5155 31776 475
Hyderabad Hi Tech city (Anant Towers) 39906 479 0 0 DLF-SEZ (DLF-1) 23615 267 0 0 DLF-SEZ (DLF-2) 17652 294 0 0 DLF-SEZ (DLF-3) 58921 490 0 0 Total Hyderabad 140094 1530 0 0
Bangalore 12291 127 0 0
Mumbai (Magnet House) 4822 44 0 0
INDIA TOTAL 679454 6856 31776 475
China Development Centre- Shanghai 4876 39 CHINA TOTAL 4876 39 - -
South Africa Development Centre 2895 40 SOUTH AFRICA TOTAL 2895 40 - -
US Development Centre 110493 359 US TOTAL 110493 359 - -
GRAND TOTAL 797718 7294 31776 475
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Rupee Dollar Rate (In %) Quarter ended Year to Date 30-Sep-13 30-Jun-13 30-Sep-12 30-Sep-13 30-Sep-12 Period Closing Rate 62.61 59.40 52.86 62.61 52.86 Period Average Rate 62.24 55.90 55.15 59.07 54.59
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About Zensar Technologies (www.zensar.com) Zensar Technologies is among the top 15 software services providers from India. The world's first enterprise-wide SEI CMM Level 5 Company and currently certified as a CMMI Level 3 Company, Zensar has industry expertise that spans Manufacturing, Retail, Healthcare, Banking Financial Services and Insurance. An RPG Group company, Zensar has near 7000 employees with sales and operations presence across US, UK, Europe, Middle East, South Africa, Singapore, China, Australia, Canada and Japan. The Company delivers comprehensive services for mission-critical applications, enterprise applications, business intelligence and analytics, CRM and Business Process Management. Zensar also provides innovative Infrastructure Management solutions that enable leading companies worldwide to optimise, secure, manage and support their mission-critical infrastructure. Using its multi-shore capabilities, Zensar combines expert consulting, integration and support services with world-class customer service to help IT organisations reduce costs, increase efficiencies and manage risk better. 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.
About RPG Enterprises (www.rpggroup.com) RPG Enterprises is one of India's largest industrial conglomerates. The group consists of over fifteen 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.
For further information, please contact: Lavanya Jayaram Head-Marketing and Sales Enablement Zensar Technologies +91-20-66057851/ +91-9922243544 [email protected]
Janki Sampat Market Innovation Zensar Technologies +91-20-66057511/ +91-9764005810 [email protected]
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