Zensar reports PAT at 10.9% in Q3FY21

Pune, India, January 21, 2021: Zensar Technologies, a leading digital solutions and technology services company that specialises in partnering with global organisations on their Digital transformation journey, announced its audited consolidated financial results for its third Quarter ending December 31, 2020 of the fiscal year 2020-2021.

Financial Highlights:
• The company reported revenue at $122.8 Mn, a decline of 2.4% QoQ in USD terms
• In Q3FY21, the PAT was at 10.9% of the revenue, an increase of 13.3% QoQ and 148.8% growth YoY in USD terms
• EBITDA increased from 19.4% in Q2 FY21 to 20.6% in Q3 FY21. In absolute USD terms, EBIDTA reported a growth of 3.3% QoQ and 167.3% YoY
• Digital accounted for 65% of the total revenues in Q3 FY21
• Zensar is now a zero-debt company with highest ever net cash position of $160.2 M as a result of exceptional cash management
• Africa and Europe regions reported a growth of 11.6% QoQ and 6.3% QoQ respectively
• Global Consumer Services is back on recovery path with QoQ growth of 7.7%
• The Digital Foundation Services business grew by 6.0% YoY with new logos added to overall portfolio

*The reported numbers are for core business (excluding TPM business divested in Q2FY21)

Ajay S. Bhutoria, Chief Executive Officer and Managing Director, Zensar Technologies said, “Our PAT has increased by 13.3% QoQ in USD terms underscoring our focus on world-class execution and operational excellence. Some of the softness in our US Hi-tech and Insurance business has been offset by healthy growth in EU and South Africa as well as our Consumer Services business. While we remain alert of current and future headwinds, we are excited with performance of our Digital business."

Adding further he stated,“Digital Foundation Services, our visionary service line helping customers build robust and secure cloud-first infrastructure to power their digital transformation initiatives, has benefited from our consistent investment and has grown by 6.0% on YoY basis. At Zensar, we have always treasured our long-standing customer relationships, and are very encouraged by our mutual commitment to work together during times of uncertainty bolstered by our ability to deliver exceptional customer value.”

Navneet Khandelwal, Chief Financial Officer, Zensar Technologies said, “Our strategic focus on improving our cash management position has shown significant results in this quarter as we are now in a strong cash position, our highest ever. Additionally, we have become a zero-debt company, which enables us to pivot our initiatives on sustainable business growth. Our PAT has increased, both on QoQ and YoY basis and our DSO for Q3 is 73 days which is an improvement of 20 days on a YoY basis.”

Significant Wins Q3FY21:
• Application and Development mandate for a leading American hi-tech company
• Digital Experience services for a large US based hi-tech company
• Strategic tech and digital services partner for UK based mutual insurance composite
• Guidewire implementation mandate for a US based insurance company
• Application and development work for a leading US based risk management products company
• Oracle implementation for a US based manufacturer of lighting products
• Digital experience solutions and services for a leading retailer based in South Africa

Corporate Excellence Snapshot in Q3FY21:
• Everest Group Aware (Intelligent) IT Infrastructure Services Automation PEAK Matrix® Assessment 2021
• Zensar has been mentioned in Everest Group BFS IT Services – Application and Digital Services in Capital Markets PEAK Matrix® Assessment 2021
• Zensar has been mentioned as an aspirant in Artificial Intelligence (AI) Services PEAK Matrix® Assessment 2021
• Zensar has been mentioned as major contender in Insurance Business Model Innovation Enablement Services PEAK Matrix® Assessment 2021
• Zensar has been mentioned as a challenger in Avasant Manufacturing Digital Services 2020 2021 RadarView TM
• Zensar has been mentioned as an aspirant in Pega Services PEAK Matrix® Assessment 2021
• Zensar positioned as a Star Performer and Major Contender in Everest Group’s Application and Digital Services (ADS) in Life and Annuities (L and A) PEAK Matrix® Assessment 2021

Awards and Recognitions in Q3FY21:
• Zensar is a winner at the 2021 Big Innovation Awards for work done by Zenlabs, its innovation hub
• Zensar recognized as an innovative company at the CII Centre for Digital Transformation DX Awards 2020 (for its employee engagement initiative)
• Zensar featured in the 100 Best Company for Women in 2020 Working Mother and Avtar Best Companies for Women in India
• Zensar’s work for a customer wins the, ‘Digital Transformation Project of the Year’ at the global SDC Awards 2020
• Zensar wins the ‘Augmented/Virtual Reality Innovation of the Year,’ at the global SDC Awards 2020 for a client project
• Zensar is awarded for its work in the, ‘Open Source/DevOps Innovation of the Year,’ at the global SDC awards 2020
• Zensar is recognised by Idea (India Digital Enabler Awards 2020) as the ‘Business App’ of the year
• Zensar’s Covid-19 response outreach campaigns is awarded the, ‘Global Marketing Excellence award’

Q3 FY 21 Revenue and Profitability snapshot:

*Numbers presented above are adjusted to exclude TPM business performance and adjusted for exceptional items unless otherwise mentioned