Net profit rises to Rs.55.25 crore, while revenue improves 18.6% to Rs.602.54 crore from the year-ago period
Mid-sized software services firm Zensar Technologies today reported 41.3 per cent jump in consolidated net profitat Rs 55.25 crore for the quarter ended March 31, 2014, helped by good performance of its application business in Western markets.
The Pune-headquartered firm had posted a net profit of Rs 39.10 crore in the year-ago period.Consolidated revenues rose by 18.6 per cent to Rs 602.54 crore in the January-March quarter of 2013-14 fiscal from Rs 508.14 crore in the same quarter of 2012-13.
Commenting on the performance, Zensar Technologies Vice Chairman and CEO Ganesh Natarajan said: “Our applications business in Western markets has performed well with sequential growth of 10.3 per cent this quarter in constant currency.”
Zensar, an RPG Group company, expects increase in customer demand for all service segments from digital transformation through IM, ERP, Applications Management to Business Process Management (BPM), he added. For the entire 2013-14 fiscal, Zensar reported a 9.5 per cent growth in revenue at Rs 2,315.60 crore from Rs 2,114.52 crore in the year-ago period.
Net profit grew 36.1 per cent to Rs 237.53 crore in FY14 from Rs 174.53 crore in the previous fiscal. On the growth in geographies, Natarajan said: “The US and Europe has performed well for the company.”
For January-March period of last fiscal, Zensar derived 75 per cent of its revenues from the US followed by Europe (11 per cent), Africa (8 per cent) and Rest of the World (6 per cent).
In terms of service offerings, Application Management accounted for 68 per cent of the revenues, which was followed by Infrastructure Management (22 per cent) and Products & Licences (10 per cent).
Natarajan said Zensar added eight significant clients among others during the quarter taking its total active client base to over 300 as of March 31, 2014.
Its total headcount stood at 6,791 for the period ended March 31, 2014.
On hiring, Natarajan said: “We will hire about 600 people in Fiscal 2015, which includes 300-350 freshers and 250 lateral hires.”
Going forward the firm expects growth in volume and will focus on Benelux and Dark region (Germany, Austria and Switzerland) region in Europe among others.