Zensar Technologies fell 11.44% to Rs 175.75 after consolidated net profit fell 50.50% to Rs 39.53 crore on 4.82% decline in net sales to Rs 1,020.59 crore in Q3 December 2019 over Q2 September 2019.
On a year-on-year (YoY) basis, consolidated net profit fell 28.50% while net sales declined 1.44%. The result was declared post market hours yesterday, 23 January 2020.
Consolidated profit before tax (PBT) reduced 29.40% to Rs 55.27 crore in Q3 December 2019 over Rs 78.31 crore in Q3 December 2018. Tax expense fell 34.3% to Rs 16.65 crore from Rs 25.36 crore paid in the corresponding quarter previous year.
Consolidated EBITDA fell 53.6% to Rs 69.60 crore in Q3 December 2019 as against Q3 December 2018. The number of active clients has fallen to 308 in Q3 December 2019 as against 309 in Q2 September 2019. The attrition rate of the IT firm stood at 16% in Q3 December 2019 compared with 17% in Q2 September 2019. The total number of employees at the end of the quarter stood at 9,951.
The effective taxation rate for Q3 December 2019 stood at 25.5% in Q3 December 2019 as compared to 28.5% in Q2 September 2019 and 27.8% in Q3 December 2018.
Commenting on the Q3 results, Sandeep Kishore, the chief executive officer and managing director of Zensar Technologies, has said that, A combination of furloughs, project specific customer ramp downs and continued softness in the retail vertical resulted in a soft quarter. However, our digital business across our cloud and infrastructure and applications continued its growth momentum registering a growth of 20.2 % YoY.
Navneet Khandelwal, the chief financial officer of Zensar Technologies, said that, Our focus on improving operating cashflows continues to show positive results. Rigour on invoicing and collections has ensured an increase in our net cash position by 33.4M USD Q-o-Q and a reduction in the DSO by 9 days Q-o-Q.
Zensar is a leading digital solutions and technology services company.
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