Zensar reports 10.3% FY23 YoY revenue growth in constant currency

Pune, India, May 11, 2023: Zensar Technologies, a leading experience engineering and technology solutions company, announced its consolidated financial results for its fourth quarter ending March 31, 2023, of the fiscal year 2022-2023.

Financial Highlights:

• In Q4FY23, the company reported revenue of $147.5 M, a sequential QoQ growth of 1.1% and constant currency 0.4%
• In Q4FY23, the company reported services revenue of $145.8 M, a sequential QoQ growth of 2.7% and constant currency 2.0%
• In Q4FY23, the gross margin stood at 31.9% of revenues in Q4FY23, representing a sequential QoQ increase of 460 basis points
• In Q4FY23, PAT stood at 9.8% of revenues, a sequential QoQ increase of 340 basis points
• For FY23, the company reported revenue of $604.2M, an increase of 6.1% YoY
• For FY23, the PAT stood at 6.7% of revenue
• The company reported net cash and cash equivalents of $201.5M at the end of Q4FY23
• The US region reported a 6.5% YoY growth
• Europe reported a 6.0% of YoY growth and 20.0% of YoY growth in constant currency
• South Africa reported a 3.8% of YoY growth and 18.3% of YoY growth in constant currency
• BFSI reported a 22.3% of YoY growth and 29.6% of YoY growth in constant currency
• Hi-Tech and Manufacturing registered a 0.9% of YoY growth and 2.7% of YoY growth in constant currency
• Consumer Services reported a decline of 5.2% YoY growth while it registered a positive 0.1% of YoY growth in constant currency

Manish Tandon, CEO and Managing Director, Zensar Technologies, said, “In Q4FY23, we continued to make significant progress toward improving profitability, with EBITDA increasing by 320 basis points to 14.5%. We ended FY23 on a positive note, with quarterly revenue of $147.5M, a sequential QoQ growth of 0.4% in constant currency, and annual revenue of $604.2M, representing YoY growth of 10.3% in constant currency. Our quarterly services revenue stood at $145.8M, a sequential QoQ growth of 2.0% in constant currency. In addition, at 19.8%, our LTM attrition saw a YoY improvement of 810 basis points. But more than the numbers, the people of Zensar are the company’s heartbeat, and by investing in our associates, we keep our entire ecosystem healthy and strong. Together, we put client-centricity at the core of our business. As we unlock the next phase of growth for Zensar, we honor that approach by making decisive moves that will propel us forward to deliver the highest value to our clients and their customers.”

Speaking on the Q4FY23 performance, Sachin Zute, CFO, Zensar Technologies said, “Our continuous rigor in driving operational efficiencies has helped improve the company's margins. Our PAT stood at 9.8% for the quarter, a QoQ increase of 340 basis points. We had one of the best DSO in recent quarters, and collections were healthy for the company. DSO stood at 74 days for the quarter, improved by 6 days QoQ. Our net cash stood at $201.5M at the end of Q4FY23, an additional $22.1M QoQ, and $45.8M YoY. Our order book for Q4FY23 stood at $174.9M, seasonally high growth of 34.0% over the last quarter. The Board of Directors in its meeting on January 23, 2023, declared an interim dividend of INR 1.50 per equity share. In addition, the Board of Directors in their meeting held on May 11, 2023, have recommended a final dividend of INR 3.50 per equity share, subject to the approval of shareholders.”

Significant Wins in Q4FY23:

• Advanced Engineering, Application, and Data Engineering Services global provider of risk management products and services based in the US.
• Advanced Engineering, Enterprise Application, and Data Engineering services for an American-based multinational digital communications technology conglomerate.
• Application services for a British company that operates department stores, supermarkets, and other retail-related activities.
• Advanced Engineering and Data Engineering and Analytics services for a UK-based service provider including utilities, transport, telecom, and data capture.
• Advanced Engineering and Application services for an American chain of high-end department stores.
• Application Services for a US-based multinational company known for its luxury and fashion accessories.

Corporate Excellence Snapshot in Q4FY23:

• Zensar has been mentioned as Major Contender in Everest Group Advanced Analytics and Insights (AA and I) Services PEAK Matrix® Assessment 2023
• Zensar has been named in Gartner Market Guide for Application Testing Services
• Zensar has been recognized as a Guidewire PartnerConnect Consulting partner at the Advantage level in North America
• Zensar has been mentioned as Major Contender in the Everest Group Guidewire Services PEAK Matrix® Assessment 2023
• Zensar has been named in Gartner Inquiry Analytics Wizard: IT End-User Topic and Vendor Mind Share

Awards and Recognitions in Q4FY23:

• Zensar wins the 2023 Training APEX Awards by Training Magazine
• Zensar has been recognized as Top Employer by the Top Employers Institute in 2023 in South Africa