Financial Highlights - Consolidated Results for the quarter ended 30th June, 2008:
• Revenue was up from Rs 187.90 Cr y-o-y to Rs 211.07 Cr;
• Net Income was up from Rs 13.35 Cr y-o-y to Rs 24.73 Cr;
• EPS up from Rs 5.58 Cr to Rs 10.32, 85% y-o-y increase.
Dr Ganesh Natarajan, Deputy Chairman and MD, Zensar and Chairman NASSCOM said, “The year has begun with a good Quarter for Zensar reporting excellent year on year profit growth at 85%. We are glad to be announcing good results even in this tough market scenario. Our focus on Retail and Enterprise solutions including Oracle SAP and Business Intelligence solutions will be intensified during the remainder of the year to consolidate and grow our success in these units.”
“Our strategies have remained to focus on productivity and efficiency keeping a close watch on utilization which is at an all time high of 85%, while constantly innovating to help deliver value to our customers. With the integration of acquired companies now nearing completion, we look forward to a robust financial year”, said S Balasubramaniam, Chief Financial Officer, Zensar Technologies Ltd.
• The Company added 23 clients during the quarter;
• The Company has 4626 employees as on 30th June, 2008. The utilization level has been sustained at its all time high score over two quarters at 85%;
• Zensar retains its leadership in the Fortune listing of Global Offshore Outsourcing Companies from India;
• This quarter Zensar’s BPO arm won its first large domestic deal with Kotak Mahindra which has seen a rapid ramp-up since its start in April 2008 to 250 associates today, and it is aimed as a 500 seater this year in steady state. Zensar BPO has also been rated amongst Top 20 BPO providers in the Finance and Accounting Outsourcing Magazine this year;
• Zensar OBT Technologies announces its OBT Pharma Solution, a Qualified SAP® Business All-in-One Partner Solution Designed for small and Midsize Pharmaceutical Manufacturing Companies helping make inroads into new Pharma accounts;
• Zensar has gained the exclusive rights to market Rosabeth Moss Kanter’s Change Management Toolkit in India and Middle East;
• The Emerging markets of India, Middle East and Africa continue be drivers of new business for the Company and with a number of customers ready now to move offshore which is a significant trend for the Company. Amongst the new wins in the territory are a large domestic banking and financial corporation, an equity solution and wealth management company, the third largest cellular network provider from South Africa, an industrial brand management company that achieves durability in business through long-term value creation, one of the world's leading professional services organizations, a leading biometrics and smart card technologies manufacturer, a high-end business infrastructure solutions, systems management and integration Company in South Africa;
• In the US even while the markets are down, new business has come in with a leading global wealth manager, a top tier investment banking and securities firm engaging with us in multiple shores, an IT network integrated solutions and semiconductor solutions provider, an independent distributor for selling personal care and nutritional products, a large information technology consulting, assessment, and information management products company, and a company that offers contract services in clinical evaluation through to commercialization and medical marketing to device industries. Europe too has had wins in a leading technology supplier search engine company, a large French software company specialized in marketing content and multi-channel publishing software and a leading provider of comprehensive loss prevention solutions to the retail sector amongst others;
• The Company was a sponsor at the Gartner Summit 08 and European Retail Solutions 08 which have been successful marketing ventures for Zensar in the UK;
• The Company launched its first year of online performance management system (ePMS) building much more efficiency into the system.
About Zensar Technologies
Zensar Technologies is among the top 25 software services providers from India. Zensar is the world's first enterprise-wide SEI CMM Level 5 Company and now a CMMI Level 5 Company with industry expertise that spans Retail, Manufacturing, Banking, Finance, Insurance, Telecommunications, Utilities and Pharma. Zensar has more than 4000 employees with sales and operations presence across US, UK, Germany, Sweden, Finland, Middle East, South Africa, Hong Kong, Singapore, Australia, Japan and China. The Company delivers comprehensive services in mission-critical applications, enterprise applications, e-business, BPO and Knowledge Services. The Company has developed tools and methodologies, including the proprietary Solution BluePrint (SBP), which enables its clients with innovative business solutions and a rapid ‘go-to-market’ capability. The Company supports Fortune 500 clients with software business solutions that help them compete in the digital economy.
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Certain statements in this release concerning our future growth prospects are forward-looking statements which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. The Company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the Company.