Zensar Q2 profit falls 16 pc to Rs 80 cr

Zensar Technologies on Monday posted 16.1 per cent decline in net profit at Rs 79.9 crore for the quarter ended September 30, 2019.

It had posted a profit of Rs 95.2 crore in the year-ago period, Zensar Technologies said in a statement.

Its revenue, however, grew 13.3 per cent to Rs 1,072.3 crore in the reported quarter from Rs 946.5 crore in the same period of last fiscal, it added.

In dollar terms, the net profit declined 16.4 per cent to USD 11.3 million, while revenue grew 12.8 per cent to USD 152.3 million in the reported quarter as against the year-ago period.

 

Digital revenues grew 25.2 per cent year-on-year, and accounted for 50.1 per cent of the quarter's revenue.

"Zensar's year-on-year revenue growth continues to be strong with an increase of 14.1 per cent on constant currency basis. Digital continues to maintain consistent momentum and grew by 25.2 per cent year-on-year," Zensar Technologies CEO and MD Sandeep Kishore said.

The company said its core business operating margin is maintained at 14 per cent, despite wage hike in the quarter gone by.

"The wage hike in Q2 was negated by improved operational efficiencies. The quarterly revenue performance was impacted by the completion of two client specific programs," it said.

The company had TCV (total contract value) wins worth over USD 120 million in the second quarter. Its total headcount stood at 10,219, while attrition was at 17 per cent.