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    Zensar Q1 results: Net profit down 6.9% to Rs 73.3 crore

    Synopsis

    In dollar terms, net profit was down 14.5% at $9.7 million and revenues of $130.8 million, down 14.7% and 12.1% in constant currency terms.

    loss-1Getty Images
    The company reported new deal wins worth $150 million during Q1FY21, and currently has a deal pipeline of $1.5 billion.
    Pune: Mid-size IT services firm Zensar reported a net profit of Rs 73.3 crore for the quarter ended June 30, 2020, down 6.9% over the corresponding quarter last year and revenues of Rs 991.2 crore, down 7%. In dollar terms, net profit was down 14.5% at $9.7 million and revenues of $130.8 million, down 14.7% and 12.1% in constant currency terms.

    Sandeep Kishore, Chief Executive Officer and Managing Director, Zensar Technologies, said, “In Q1FY21, we have continued our focus to ensure wellness and safety of all our people and to support all our global clients in their Digital, Cloud and IT systems as the world deals with the pandemic. We have invested into launching several new propositions tailored to help our customers remain relevant during and post the pandemic period. Our Digital Foundation Services has performed very well, posting a QoQ growth of 7.6% and our hi-tech business grew by 2.9% QoQ.”

    The company reported new deal wins worth $150 million during Q1FY21, and currently has a deal pipeline of $1.5 billion. “Our global talent has been very productive, in the new 100% remote model working closely with our customers as they embark on transformation path to recovery and resilience,” said Kishore.

    The total headcount at the end of the quarter was 9027, with an addition of 229 new employees. The headcount at the end of the previous quarter was 9524.

    “In Q1FY21, we continued our cash management initiatives and our rigour on collections. This has resulted in an improvement on our cash conversion or DSO by 12 days sequentially and an increase in our net cash position by $41.3Mn sequentially. Our focus on operational efficiencies has resulted in an increase in EBITDA despite decline in revenues to 14.4%. Our PAT is at 7.4% of revenue which is an increase from 6.8% in Q4FY20,” said Navneet Khandelwal, Chief Financial Officer, Zensar Technologies.
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    The new deal wins during the quarter included a cloud and infrastructure project for an American pharma company, an application and development mandate for an American hi-tech company and a financial services application for a banking conglomerate in South Africa, among others.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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