Financial Highlights: Consolidated Results for the quarter ended 30th September, 2008 vis-ŕ-vis the same quarter last year:
• Revenue was up from Rs. 191.84 Cr y-o-y to Rs. 232.82 Cr;
• Net Income was up from Rs. 14.15 Cr y-o-y to Rs. 18.56 Cr;
• EPS up from Rs. 5.91 to Rs. 7.74, 31% y-o-y increase.
Dr Ganesh Natarajan, Deputy Chairman and MD, Zensar and Chairman NASSCOM said, “The Company has reported another Quarter of good profits with a significant year-on-year growth of 31% in PAT. Zensar’s focus on Innovation continues to give us desired results. We are proud by the recognition recently received from the Department of Scientific & Industrial Research (DSIR) of the Government of India encouraging our efforts in Innovation and R&D. The new businesses of infrastructure management and software testing are showing great promise and we are looking at these businesses growing to 100 Mn USD by 2010-11.
Zensar was recently certified by the Department of Scientific and Industrial Research in recognition of the in-house R&D efforts that the Company undertakes. Sanjay Marathe, Chief Technology Officer, Zensar said, “Zensar believes Innovation and R&D can focus and leverage efforts in developing technology competencies to better software and service delivery to our customers by creating newer products, tools and service offerings. This recognition now gives us necessary impetus to further enhance innovation efforts.” The Department of Scientific & Industrial Research (DSIR) is the nodal department that grants recognition to in-house R&D units in Industry, Scientific and Industrial Research Organizations (SIROs) with the objective to enhance focus on In-house R&D, and to promote and strengthen R&D infrastructure in the Industry, ensuring this dovetails into robust technological and industrial development.
Zensar’s strategic services, Infrastructure Management and Software Testing businesses have been ringing in new wins and are showing significant growth potential. Krishna Ramaswami, Vice President and Head, Strategic Services and Supply Unit, Zensar said, “The Worldwide testing market is of the size of 13 Bn USD showing a yearly growth of 30-40%. We envisage a huge growth potential here and Zensar’s testing practice is making investments in the areas of Test Automation, Shared Services and Security Testing. We are launching an innovative shared service model to meet on-demand testing requirements of small and mid-sized companies especially in the products space.”
On the Infrastructure Management Business Krishna Ramaswami added, “Zensar has invested in a robust IM practice launching new services lines called ZenRIMS (Zensar Remote Infrastructure Management Services) and ZenGDC (Zensar Green Data Centre). Eastern Europe is a significant market for these services and South Africa, Australia and Singapore too have been showing great growth potential for these services. Zensar could be looking at an acquisition in the Networking and Security space to enhance capability and scale for expansion into these territories. Zensar’s IM practice has established itself as a significant player and is aimed at being a USD 50 Mn entity by 2010-11 with a 1000+ strong workforce, positioned as ‘the Business Availability Partner to Global Corporates’.”
S Balasubramaniam, Chief Financial Officer, Zensar said, “These are uncertain times in the market however backed by our robust lines of businesses and strategies for growth the management is confident of achieving its guidance PAT of Rs. 85 Cr.”
About Zensar Technologies
Zensar Technologies is among the top 25 software services providers from India. Zensar is the world's first enterprise-wide SEI CMM Level 5 Company and now a CMMI Level 5 Company with industry expertise that spans Retail, Manufacturing, Banking, Finance, Insurance, Telecommunications, Utilities and Pharma. Zensar has more than 4000 employees with sales and operations presence across US, UK, Germany, Sweden, Finland, Middle East, South Africa, Hong Kong, Singapore, Australia, Japan and China. The Company delivers comprehensive services in mission-critical applications, enterprise applications, e-business, BPO and Knowledge Services. The Company has developed tools and methodologies, including the proprietary Solution BluePrint (SBP), which enables its clients with innovative business solutions and a rapid ‘go-to-market’ capability. The Company supports Fortune 500 clients with software business solutions that help them compete in the digital economy.
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Head - Corporate Innovation Group
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Certain statements in this release concerning our future growth prospects are forward-looking statements which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. The Company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the Company.