Seeing uptick in manufacturing, retail segments

Ganesh Natarajan, Vice-Chairman and MD of Zensar Tech sees an uptick in manufacturing and retail segments and expects insurance segment to do well. In an interview to CNBC-TV18, Natrajan said he is confident about product and services mix as well. He however sees a downside in the currency space. Below is the transcript of Ganesh Natarajan’s interview with Sonia Shenoy and Anuj Singhal on CNBC-TV18.
Anuj: We have seen couple of yours peers talk about some kind of delays and some kind of headwinds going forward. Do you these are company’s specific issues or are these sector specific issues and they will be more prominent in the next financial years?
A: As a sector we have to be watchful because signs are little mix in the global economy. However if you look at company’s like ours which is almost 75 percent US, the US job recoveries has been excellent and depending on what the Fed does we will continue to see very good growth in the US. So I am very sanguine about prospects in the US. If you look at our own company we also do work in Europe and Africa. Both these are good markets; we are about currency. The South African rand is not doing well. Apart from that I do not see any reason to suddenly say that look is the outlook good or not. I think outlook will be good for all companies who are in the right segments and so long as you are in the right service areas I do not see a problem. Sonia: What is your own exposure to the insurance and energy verticals and are you noticing any kind of pressure in those segments?
A: We are not in the oil and gas segment and clearly that will be impacted because we all know what is happening to oil prices and the volatility. Insurance I do not agree because we are in that segment doing well. I do not see a problem there at all. In the other two segments, we are in manufacturing and retail we see a huge uptake because I was just listening to Rakesh Jhunjhunwala and his point is right I mean e-commerce valuations are pretty heavy.
However, today if you look at the future any company which is a service provider in e-commerce space is likely to see a good run. As everybody is exploring e-commerce, it is not just retail- but it is retail, healthcare, insurance, manufacturing with internet of things. So, so long as you are in very strongly additional transformation, companies will do better. Anuj: Last quarter was very good for you in terms of dollar revenue growth. You had the best run rates in the IT sector? Do you think that kind of run rate is possible in FY16 as well?
A: It is a good question, everything is possible, but clearly, we are watchful. The signs are good as I said both in digital as well as in applications and infrastructure. We had some set backs in infrastructure for the last two years because of an acquisition we did but even that is turning around. At this point of time I see no red signals anywhere and we should have a good FY16 without a doubt.