Zensar reports 3.2% sequential and 14.2% yearly growth in Q4 FY18

Pune, India, April 24, 2018: Zensar Technologies, a leading digital solutions and technology services company that specializes in partnering with global organizations across industries on their Digital transformation journey, announced its audited consolidated financial results for Quarter ending March 31, 2018, of the fiscal year 2017-2018.

• In Q4FY18, the company reported PAT of USD 11.3 M, a sequential growth of 23.8%. For the full year FY18, PAT grew by 7.1% to USD 37.5 M.
• The Company reported year on year revenue growth of 5.8% in USD at close of FY18 from USD 455.6 M to USD 482.2 M.
• PBT grew by 16.5% for the qtr. Q4FY18 and for full year FY18 it grew by 5.0%
• Digital Services contributed 40.6% of Q4FY18 and 38.2% of full FY18 revenue.

The Board of Directors of in their meeting held on April 24, 2018, considered and recommended Splitting of the Company's equity shares of Rs.10 each into five (5) equity shares of face value of Rs. 2/- each subject to the approval of Shareholders. The Board also recommended a final dividend of Rs.7 per share making it a total dividend of 120% for the financial year.

Sandeep Kishore, Chief Executive Officer and Managing Director, Zensar Technologies said, “FY18 has seen Zensar achieve new milestones as our digital business displayed consistent growth by growing 8.2% sequentially and 34.6% yearly. Our global customers have experienced visible business benefits from their digital initiatives driven by our Return on Digital® proposition. Our acquisition of Cynosure Inc. a Guidewire partner strengthens our go to market strategy for the insurance sector, a key vertical for Zensar.”

He further added, “The most recent Quarter has seen our digital services at its highest, reaffirming our capabilities and deep understanding of what our customers need. We have added some key logos across all our services.”

Navneet Khandelwal, Chief Financial Officer, Zensar Technologies said, “We have seen a stable and consistent growth in every quarter of FY18 and have hit the highest quarterly and annual revenues of $126.6 Mn and $482.2Mn respectively. The key markets of UK and Africa have delivered a stellar performance with US too getting into a positive zone.”

Significant Wins in Q4FY18

• Digital commerce deal for a prominent American retail chain
• A contract to create Supply Chain Contract Digital Platform (CDP) for large American hi-tech corporation
• Traditional AMS work for large American hi-tech corporation
• A multi-year managed security deal for an international digital security company
• A multi-year deal on Digital Analytics for one of the largest American department store chains
• An AMS deal for one of South Africa’s largest financial groups
• A testing mandate for a large financial services and property holding company from South Africa
• A multi-year AMS deal with a globally diversified group based in the US
• A multi-year win with a large retailer for Oracle ATG implementation
• Experience Design services deals for multiple organisations - for a payment and money transfer solutions company, for an American multinational biopharmaceutical company, for a US-based provider of online trading services, for a British wealth management company, for a community centre headquartered in Austria, and for an online odds comparison service
• Digital application services for an American manufacturing test and measurement devices company, and Artificial Intelligence modernization for a global lifestyle retailer founded in America, CRM development for financial investment management company, and Digital Commerce Services for the Mexico arm of leading American multinational retailing corporation
• Multivendor support services for an American company operating a worldwide online payments system, a managed hosting services provider in Europe, an American networks solutions provider
• Experience Design services: for one of the leaders in Health Cash plans industry in the UK Market; a global leader in online trading; a company that focused on the creation of multimedia and creativity software products, and more recently in rich internet application software development; a research and insights services deal for a UK based company which operates two significant vehicle rental brands in Europe, Middle East, Africa and Asia.
• Digital Commerce deals for retail enterprises: a multi-year, multi-million deal for the largest specialty retailer of men's apparel, with operations throughout the US and in London; a chain of beauty stores in the United States which carries cosmetics and skincare brands, men's and women's fragrances, and haircare products; an American corporation based in Wisconsin that formulates and packages synthetic lubricants and filters.
• Analytics: a multi-million deal with an American multinational technology conglomerate that develops, manufactures and sells networking hardware, telecommunications equipment and other high-technology services and products; an American energy company that designs and manufactures crystalline silicon photovoltaic cells and solar panels.
• Digital Testing: a multi-million, multi-year deal for one of the leaders in the financial solutions industry in Africa; a multi-year Agile Testing deal for one of the industry leaders in risk mitigation; a digital testing deal for an investment advisory, portfolio management, securities company.
• An application support and maintenance deal for a non-profit organisation in the US specialising in alternative dispute resolution
• An Oracle EBS deal for an American company headquartered in New Jersey that provides and services voice communication systems for financial companies; an Oracle EBS deal for an American Company that manufactures and distributes analytical instruments and reagents used to test the quality of water and other liquid solutions, an Oracle EBS deal for an American animation studio based in Glendale, California which produces animated feature films, television programs and online virtual games, an Oracle EBS deal for a supplier of critical systems and components to the aerospace and defence markets
• An application maintenance deal for one of the world's biggest developers and suppliers of online Microgaming based in South Africa

Corporate Excellence in FY18

• The Company announced the acquisition of Cynosure Inc. targeting leadership in Property and Casualty Insurance carriers
• Zensar announced an extension of its Managed Partner relationship with Microsoft in South Africa in the Global Systems Integrator (GSI) market
• Zensar expanded its UK operations with a new office location in Green Park in Reading. It comes under the fast growing ‘Innovation Corridor’, which is about 30 minutes from Central London and the Heathrow Airport
• There were significant solutions launches in this year, including Return on Digital® enabled business solutions, Big-Data enabled platform for seamless end to end information management and Blockchain Enablement Framework

Industry Recognition in FY18

Zensar received significant industry recognition for its service lines and solutions as below:

• Zensar mentioned in Everest Group Cloud Enablement Services – Market Trends and PEAK Matrix™ Assessment
• Zensar mentioned in Gartner Magic Quadrant for Oracle Application Services, Worldwide 2018
• Zensar named in Gartner Market Guide for Enterprise Architecture Consulting
• Zensar mentioned in Gartner Competitive Landscape : Partnering with Third Party Maintenance Providers for Data Center and Network Maintenance Cost Optimization
• Zensar named ‘Rising Star’ in ISG Provider Lens™ Managed Digital Workplace Quadrant Report 2017 and ‘Leader’ in ISG Digital Workplace Archetype Report 2017
• Zensar called out as a Product Challenger in the Application Support and Maintenance Category in the ISG Application Development and Maintenance Services Report
• Zensar named Major Contender in Everest Group Workplace Services – Market Trends and PEAK Matrix™ Assessment
• Zensar named in Everest Group IT Infrastructure Automation – Market Update and PEAK Matrix™ Assessment for Solutions (Focus on IT Service Providers)
• Zensar named in Gartner Digital Commerce Vendor Guide
• Zensar mentioned in Gartner Competitive Landscape : Partnering with Third Party Maintenance Providers for Data Center and Network Maintenance Cost Optimization
• Zensar named in ISG Provider Lens™ Quadrant Report - 2017 ISG Application Development and Maintenance Services Report
• Zensar named in new ISG research Digital Workplace Services Archetype Report
• Magic Quadrant for Data Center Outsourcing and Infrastructure Utility Services, North America
• Competitive Landscape: Partnering With Third Party Maintenance Providers for Data Center and Network Maintenance Cost Optimization

Q4 FY 17-18 Revenue and profitability snapshot (US$)

Q4 FY 17-18 Revenue Growth in Constant Currency