Zensar Technologies : reports 3.6% quarterly YoY constant currency growth in Q3FY23

Pune, India, January 23, 2023:Zensar Technologies, a leading experience engineering and technology solutions company, announced its consolidated financial results for the third quarter, ending December 31, 2022, of the fiscal year 2022-2023.

Financial Highlights:

• In Q3FY23, the company reported revenue of $145.9M, quarterly YoY growth of 3.6% in constant currency and sequential QoQ decline of 5.3%

• In Q3FY23, the EBITDA was at 11.3% of revenues and the PAT stood at 6.4% of revenues

• The company reported net cash of $179.4M at the end of Q3FY23

• The US region posted sequential QoQ decline of 8.0% and quarterly YoY decline of 2.1%

• The Europe region registered sequential QoQ growth of 2.2% and quarterly YoY growth of 18.7% in constant currency

• South Africa registered quarterly YoY growth of 15.0% in constant currency and was flat on QoQ

• Banking, Financial Services, and Insurance (BFSI) reported sequential QoQ decline of 1.3% and quarterly YoY growth of 19.8% in constant currency

• Hi-Tech and Manufacturing (HTM) and Emerging registered sequential QoQ decline of 9.3% and quarterly YoY decline of 2.5% in constant currency

• Consumer Services registered sequential QoQ decline of 2.3% and quarterly YoY decline of 6.8% in constant currency

Manish Tandon, CEO and Managing Director, Zensar Technologies, said, "In Q3FY23, we reported a marked improvement in profitability, with the EBITDA increasing by 270 basis points. Our quarterly revenues are at $145.9M, with a YoY growth of 3.6% in constant currency. In the one month since joining Zensar, I have spent time understanding our fundamentals. With our strong investments in our service lines, our vertical capabilities, and our strong leadership, we are positioned well to drive sustainable and profitable growth. Currently, I am focused on meeting with our global teams and top clients to understand the opportunities to build a more resilient organization with client centricity at its core."

He further added, "I am amazed at the energy and passion of our associates worldwide and am working closely with the Board, senior leadership team, and the extended teams to drive client-centric initiatives, people-driven investments with a clear objective to add value at each step of the client's engagement with us."

Commenting on Q3FY23 performance, Sachin Zute, CFO Zensar Technologies, said, "This quarter was marked by furloughs across client organizations, impacting our overall metrics. The initiatives we undertook in the previous quarters have resulted in an increase in EBITDA to 11.3% and our constant currency YoY growth in revenues by 3.6% kept the momentum on a quarterly YoY basis. We intend to keep the rigor on the margins as we focus on driving growth across accounts."

Significant Wins in Q3FY23:

• Application development services, along with data engineering and data services mandate for an American global technology company

• Application services for a leading e-commerce and online gaming software company in South Africa

• Application services for a British private bank

• Application services for a global non-profit organization

Corporate Excellence Snapshot in Q3FY23:

• Zensar mentioned as Major Contender in Everest Group Guidewire Services PEAK Matrix® Assessment 2023

• Zensar mentioned as Major Contender in Everest Group Managed Detection and Response (MDR) Services PEAK Matrix® Assessment 2023

• Zensar mentioned as Major Contender in Everest Group Application and Digital Services (ADS) in Life and Annuity (L&A) Insurance - PEAK Matrix® Assessment 2023

• Zensar mentioned as Aspirant in Everest Group SAP Business Application Services PEAK Matrix® Assessment 2023 - Global

• Zensar named in Gartner Market Guide for Life Policy Administration Systems, Americas

• Zensar named in Gartner Market Guide for P&C Insurance Core Platforms, North America

• Zensar named in Gartner Competitive Signals: IT Services Providers' Performance Snapshot, 2Q22

Awards and Recognitions in Q3FY23:

• Zensar and Foolproof win ISG Paragon Award for Diversity of thought and lived experience

• Zensar and Foolproof win BIMA (British Interactive Media Association) Silver Award for Best Digital Transformation

• Zensar added to '2022 Exemplars of Inclusion' in the Most Inclusive Companies Index (part of) Avtar & Seramount 100 Best Companies for Women in India

• Shortlisted among top case studies in the NASSCOM Business Process Innovation Showcase 2022 in the category "Innovative platform-service partnerships - accelerating impact."