ZENSAR TECHNOLOGIES LIMITED 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-Techand 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. Bx`ut 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-centricityat 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, 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 & 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&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
Q4FY23 Revenue and Profitability snapshot:
Q4FY23 | Growth | |||
Particulars | Q-o-Q | Y-o-Y |
USD Mn | INR Mn | |||||||
USD | INR | CC | USD | INR | CC | |||
Revenue | 147.5 | 12,127 | 1.1% | 1.3% | 0.4% | -3.7% | 5.1% | -0.3% |
EBITDA | 21.4 | 1,758 | 30.1% | 30.4% | -1.2% | 7.0% |
EBIT | 17.1 | 1,407 | 64.9% | 65.4% | 12.2% | 21.2% |
PAT | 14.5 | 1,192 | 55.6% | 55.9% | -15.8% | -8.2% |
Performance Highlights:
Revenue (USD Mn)
153.2 | 155.9 | 155.0 | ||
145.9 | 147.5 | |||
Q4FY22 | Q1FY23 | Q2FY23 | Q3FY23 | Q4FY23 |
EBITDA (%)
14.1% | 14.5% |
11.2%11.3%
8.5%
Q4FY22 | Q1FY23 | Q2FY23 | Q3FY23 | Q4FY23 |
PAT (%)
11.2%
9.8%
6.2%6.4%
4.6%
Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23
MILLION DOLLAR CLIENTS
27 | 26 | 28 | 28 | 29 | |||||||||||
15 | 14 | ||||||||||||||
13 | 13 | ||||||||||||||
11 | |||||||||||||||
4 | 4 | 3 | 4 | 4 | |||||||||||
Q4FY22 | Q1FY23 | Q2FY23 | Q3FY23 | Q4FY23 | |||||||||||
5M+ Clients | 10M+ Clients | 20M+ Clients | |||||||||||||
Income Statement (USD Mn)
Income Statement (USD Mn) | Q4 FY 22 | Q3 FY 23 | Q4 FY 23 | FY22 | FY23 | ||||||||||||
Operating revenue | 153.2 | 145.9 | 147.5 | 569.4 | 604.2 | ||||||||||||
Sequential Growth | 4.1% | -5.9% | 1.1% | ||||||||||||||
Year-Over-Year Growth | 27.4% | -0.9% | -3.7% | 15.3% | 6.1% | ||||||||||||
Cost of revenue | 107.0 | 105.9 | 100.4 | 391.9 | 436.6 | ||||||||||||
Gross profit | 46.2 | 39.9 | 47.1 | 177.4 | 167.6 | ||||||||||||
Gross profit % of revenue | 30.1% | 27.4% | 31.9% | 31.2% | 27.7% | ||||||||||||
Sequential Growth | 5.9% | 1.7% | 17.9% | ||||||||||||||
Year-Over-Year Growth | 10.0% | -8.4% | 2.0% | 7.3% | -5.5% | ||||||||||||
Sales and marketing expenses | 10.1 | 11.4 | 11.4 | 36.2 | 43.6 | ||||||||||||
General and administration expenses | 14.4 | 12.1 | 14.3 | 53.2 | 55.6 | ||||||||||||
Operating expenses | 24.5 | 23.5 | 25.7 | 89.4 | 99.2 | ||||||||||||
% of revenue | 16.0% | 16.1% | 17.4 | 15.7% | 16.4% | ||||||||||||
Other operating income | - | - | - | ||||||||||||||
Earnings before interest, tax, depreciation and amortization | 21.6 | 16.4 | 21.4 | 88.0 | 68.5 | ||||||||||||
(EBITDA) | |||||||||||||||||
EBITDA % of revenue | 14.1% | 11.3% | 14.5% | 15.5% | 11.3% | ||||||||||||
Sequential Growth | 2.5% | 24.4% | 30.1% | ||||||||||||||
Year-Over-Year Growth | -9.5% | -22.2% | -1.2% | -4.6% | -22.2% | ||||||||||||
Depreciation and amortization | 6.4 | 6.1 | 4.3 | 24.8 | 22.9 | ||||||||||||
Earnings before interest and tax (EBIT) | 15.2 | 10.4 | 17.1 | 63.2 | 45.6 | ||||||||||||
EBIT % of revenue | 9.9% | 7.1% | 11.6% | 11.1% | 7.5% | ||||||||||||
Sequential Growth | 3.1% | 47.8% | 64.9% | ||||||||||||||
Year-Over-Year Growth | -14.4% | -29.9% | 12.2% | -8.3% | -27.9% | ||||||||||||
Interest | 1.2 | 0.9 | 0.8 | 4.7 | 3.5 | ||||||||||||
Exchange Gain/(Loss) | 3.4 | 0.9 | 0.7 | 6.4 | 4.8 | ||||||||||||
Other income | 6.3 | 2.3 | 2.6 | 12.1 | 8.0 | ||||||||||||
Profit before tax | 23.8 | 12.6 | 19.6 | 77.0 | 54.9 | ||||||||||||
% of revenue | 15.5% | 8.6% | 13.3% | 13.5% | 9.1% | ||||||||||||
Sequential Growth | 41.3% | 30.7% | 55.9% | ||||||||||||||
Year-Over-Year Growth | 39.5% | -25.1% | -17.3% | 18.2% | -28.7 | ||||||||||||
Provision for taxation | 6.4 | 3.3 | 5.1 | 20.4 | 14.4 | ||||||||||||
Profit after tax (before minority interest) | 17.3 | 9.3 | 14.5 | 56.6 | 40.5 | ||||||||||||
% of revenue | 11.3% | 6.4% | 9.8% | 9.9% | 6.7% | ||||||||||||
Minority interest | 0.1 | - | - | 0.7 | - | ||||||||||||
Profit after tax | 17.2 | 9.3 | 14.5 | 55.9 | 40.5 | ||||||||||||
Profit after tax % of revenue | 11.2% | 6.4% | 9.8% | 9.8% | 6.7% | ||||||||||||
Sequential Growth | 42.1% | 31.2% | 55.6% | ||||||||||||||
Year-Over-Year Growth | 38.7% | -23.1% | -15.8% | 18.4% | -27.5% |
Income Statement (INR Mn)
Income Statement (INR Mn) | Q4 FY 22 | Q3 FY 23 | Q4 FY 23 | FY22 | FY23 | ||||||||||||
Operating revenue | 11,538 | 11,976 | 12,127 | 42,438 | 48,482 | ||||||||||||
Sequential Growth | 4.7% | -3.0% | 1.3% | ||||||||||||||
Year-Over-Year Growth | 31.6% | 8.6% | 5.1% | 15.7% | 14.2% | ||||||||||||
Cost of revenue | 8,055 | 8,699 | 8,254 | 29,213 | 35,000 | ||||||||||||
Gross profit | 3,484 | 3,277 | 3,872 | 13,224 | 13,482 | ||||||||||||
Gross profit % of revenue | 30.2% | 27.4% | 31.9% | 31.2% | 27.8% | ||||||||||||
Sequential Growth | 6.6% | 4.7% | 18.2% | ||||||||||||||
Year-Over-Year Growth | 13.9% | 0.3% | 11.2% | 7.8% | 2.0% | ||||||||||||
Sales and marketing expenses | 760 | 933 | 981 | 2,699 | 3,546 | ||||||||||||
General and administration expenses | 1,081 | 995 | 1,133 | 3,960 | 4,414 | ||||||||||||
Operating expenses | 1,841 | 1,928 | 2,114 | 6,659 | 7,960 | ||||||||||||
% of revenue | 16.0% | 16.1% | 17.4% | 15.7% | 16.4% | ||||||||||||
Other operating income | - | - | |||||||||||||||
Earnings before interest, tax, depreciation and amortization | 1,642 | 1,349 | 1,758 | 6,565 | 5,523 | ||||||||||||
(EBITDA) | |||||||||||||||||
EBITDA % of revenue | 14.2% | 11.3% | 14.5% | 15.5% | 11.4% | ||||||||||||
Sequential Growth | 3.7% | 27.8% | 30.4% | ||||||||||||||
Year-Over-Year Growth | -5.7% | -14.9% | 7.0% | -4.0% | -15.9% | ||||||||||||
Depreciation and amortization | 481 | 497 | 351 | 1,848 | 1,830 | ||||||||||||
Earnings before interest and tax (EBIT) | 1,161 | 851 | 1,407 | 4,717 | 3,693 | ||||||||||||
EBIT % of revenue | 10.1% | 7.1% | 11.6% | 11.1% | 7.6% | ||||||||||||
Sequential Growth | 4.6% | 51.3% | 65.4% | ||||||||||||||
Year-Over-Year Growth | -10.5% | -23.4% | 21.2% | -7.7% | -21.7% | ||||||||||||
Interest | 89 | 76 | 63 | 353 | 279 | ||||||||||||
Exchange Gain/(Loss) | 248 | 71 | 58 | 469 | 385 | ||||||||||||
Other income | 475 | 188 | 214 | 908 | 643 | ||||||||||||
Profit before tax | 1,796 | 1,035 | 1,616 | 5,741 | 4,441 | ||||||||||||
% of revenue | 15.6% | 8.6% | 13.3% | 13.5% | 9.2% | ||||||||||||
Sequential Growth | 42.3% | 34.2% | 56.2% | ||||||||||||||
Year-Over-Year Growth | 44.7% | -18.1% | -10.0% | 18.9% | -22.6% | ||||||||||||
Provision for taxation | 489 | 270 | 424 | 1,525 | 1,165 | ||||||||||||
Profit after tax (before minority interest) | 1,308 | 765 | 1,192 | 4,217 | 3,275 | ||||||||||||
% of revenue | 11.3% | 6.4% | 9.8% | 9.9% | 6.8% | ||||||||||||
Minority interest | 9 | 54 | |||||||||||||||
Profit after tax | 1,299 | 765 | 1,192 | 4,163 | 3,275 | ||||||||||||
Profit after tax % of revenue | 11.3% | 6.4% | 9.8% | 9.8% | 6.8% | ||||||||||||
Sequential Growth | 42.8% | 34.7% | 56.0% | ||||||||||||||
Year-Over-Year Growth | 43.6% | -15.9% | -8.1% | 19.0% | -21.3% |
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
ZenSar Technologies Limited published this content on 11 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 May 2023 17:13:03 UTC.
