RPG groups IT services arm Zensar Technologies, reported net profit of Rs 32.17 crore a drop of 20% from Rs 40 crore in the same quarter last year. Appreciating rupee dragged the company's profit number for the quarter.
Zensar reported forex losses of Rs 21 crore compared to a gain of Rs 17.58 crore in the last quarter.
Revenue for the quarter was up 31% at Rs 537.3 crore from Rs 409 crore in the same quarter last year. Sequentially the company's revenue were down 1%.
Ganesh Natarajan CEO and Vice Chairman, Zensar Technologies said, “The second quarter has produced steady growth in all our focus verticals. Zensar has grown its revenues 34% in the first half of the financial year, and we are confident that we will report full year growth that will be substantially above Industry average. Our pipeline of new business in all verticals and in the core enterprise software as well our new focus area of infrastructure management is excellent.”
In this quarter Zensar reported 25 wins across its focus verticals, some of which are large annuity contracts in core areas of enterprise solutions, and in the hi-tech manufacturing space, said the company.
S Balasubramaniam, Chief Financial Officer, Zensar Technologies said, “The rapid rupee appreciation in the Quarter impacted us on the spot realizations and currency translations at the Quarter end. Given that we are hedged on our forex exposures, the gains on our forward covers would flow to us in the subsequent quarters, if the rupee continues its current upward momentum”.