Zensar's constant currency revenues grow 12.3% QoQ in Q2FY22

Pune, India, October 26, 2021: Zensar Technologies, a leading experience engineering and technology solutions company, announced its consolidated financial results for its second quarter ending September 30, 2021, of the fiscal year 2021-2022.  

Financial Highlights:

• In Q2FY22, the company reported revenue of $141.9Mn, a constant currency sequential QoQ growth of 12.3%
• PAT stood at $12.8Mn or 9.0% of revenues, a sequential QoQ decline of 181 bps
• The company reported net cash of $160.8Mn in Q2FY22
• Sequential QoQ, the US region reported growth of 11.9%, UK region reported growth of 11.2%, and South Africa reported growth of 10.0%
• From a vertical perspective, on a sequential QoQ basis, the Banking vertical posted growth of 37.0%, while Insurance grew by 12.2%. Revenues from Hi-Tech clients grew sequentially by 3.9% QoQ, while Manufacturing posted a sequential QoQ growth of 6.8%. The Consumer Services vertical posted a sequential QoQ growth of 18.1%

 (Revenues of M3bi have been included in Q2 numbers)

Ajay S. Bhutoria, CEO and Managing Director, Zensar Technologies, said, "Q2FY22 has been one of our strongest quarters in the recent past, with revenues seeing a sequential QoQ growth of 12.3% on a constant currency basis. This performance is bolstered by broad-based growth across all geographies, service lines, and verticals. Our regions have posted strong performances, with new clients being added and incremental business being driven from existing clients. Our clients continue to see in us reliable, future-driven partners as we bring in world-class processes and learnings."

Adding further, he stated, "We continue to build competency and scale in focus strategic growth opportunities (SGOs) such as Experience Services, Advanced Engineering and Data Analytics in addition to our core services. We added new leadership across our markets and SGOs, bringing in diverse industry experience and vision. As our business expands, we are transforming demand fulfilment and talent acquisition to stay competitive in a highly competitive talent market.”

Navneet Khandelwal, Chief Financial Officer, Zensar Technologies, said, "We have delivered a strong quarter with robust revenue growth and our headcount crossing 10,000 associates. Our PAT has increased by 8.3% on a YoY basis. Our net cash position continues to be strong. We also completed salary increments across the board effective July 1, 2021, which was the second such hike in this calendar year."

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

Significant Wins in Q2FY22:

• Mandate from the City of San Diego to modernize the city's data centre and end-user services
• Cloud and infrastructure services from a US-based global healthcare company
• Application and development maintenance support for a large US Hi-Tech company
• Application and development services for a global NGO
• Application services for a leading South Africa-based entertainment company
• Multiple services, including cloud, infrastructure, testing, and application development for an international financial institution based in the UK

Corporate Excellence Snapshot in Q2FY22:

• Zensar has been recognized as a "Leader" in Managed Services for Midmarket and as a "Product Challenger" in Managed Services for Large Accounts in the ISG Provider Lens™ Quadrant Report for Next-Gen Private/Hybrid Cloud, Data Center Services and Solutions US 2021
• Zensar has been featured as a "Disruptor" in Avasant's Digital Talent Capability 2021 RadarView report
• Zensar has been positioned as a "Major Contender" on the Application and Digital Services in Banking PEAK Matrix® Assessment 2021, Global

Awards and Recognitions in Q2FY22:

• Foolproof, a Zensar company, was named one of the #BIMA10 (British Interactive Media Association) for their work with One Shot Immersive
• Foolproof, a Zensar company, won Digital Agency of the Year and Design Agency of the Year at the UK Agency Awards
• Zensar was named Tech Company of the year at the Tech India Transformation Awards 2021
• Zensar was recognized as the first runner-up at the UN Women Award for Transparency and Reporting on Gender Equality

Q2 FY22 Revenue and Profitability snapshot: