Zensar Technologies gained 5.55% to Rs 233.75 after the IT company reported a 34.68% rise in consolidated net profit to Rs 76.5 crore in Q3 FY23 from Rs 56.8 crore posted in Q2 FY23.
However, the company's revenue from operations fell 3% QoQ to Rs 1,197.6 in the quarter ended 31 December 2022.As compared with Q3 FY22, the company's net profit declined 15.9% while revenue was higher by 8.6%.
Profit before tax stood at Rs 103.5 crore in Q3 FY23, rising 34.24% quarter on quarter but declining 18.05% year on year.
Earnings before interest, tax, depreciation and amortization (EBITDA) up 27.87% QoQ while down 14.89% YoY to Rs 134.9 crore in Q3 FY23. EBITDA margin stood at 11.3% in Q3 FY23 as against 8.5% in Q2 FY23 and 14.4% in Q3 FY22.
In Q3 FY23, the company reported revenue of $145.9 million, a sequential growth of 4.1% and a year on year growth of 27.4%. In constant currency terms, revenue was down 5.3% QoQ while up 3.6% YoY.
The IT company's voluntary attrition rate stood at 22.8% in Q3 FY23 as compared to 26.3% in Q2 FY23 and 26.7% in Q3 FY22.
The company's board appointed Manish Tandon as chief executive officer and managing director (CEO and MD) of the company for a term of 5 years effective from 23 January 2023 to 22 January 2028, subject to member's and other applicable approvals.
Consequent upon Manish Tandon's appointment as CEO and MD of the company, Anant Vardhan Goenka has relinquished charge as interim managing director, with immediate effect. He would however continue to be on the board of the company in the capacity of non-executive non-independent director. Further, Goenka has been appointed as non-executive vice-chairman of the company with immediate effect.
Manish Tandon, CEO and managing director said, In Q3 FY23, we reported a marked improvement in improvement in profitability, with the EBITDA increasing by 270 basis points. Our quarterly revenues are at $145.9 million, with a YoY growth of 3.6% in constant currency.
Sachin Zute, CFO of Zensar Tech said, This quarter was marked by furloughs across client organizations, impacting our overall metrics. The initiatives we undertook in the previous quarters have resulted in an increase in EBITDA to 11.3% and our constant currency YoY growth in revenues by 3.6% kept the momentum on a quarterly YoY basis. We intend to keep rigor on the margins as we focus on driving growth across accounts.
Zensar Technologies is engaged in providing a complete range of IT Services and solutions and company's industry expertise spans across manufacturing, retail, media, banking, insurance, healthcare and utilities.
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