Zensar Technologies Ltd.
Q4FY23 Quarterly & FY23 Annual Result Announced for Zensar Technologies Ltd.
IT Consulting & Software company Zensar Technologies announced Q4FY23 & FY23 results:
- In Q4FY23, the company reported revenue of USD 147.5 million, a sequential QoQ growth of 1.1%, and constant currency of 0.4%
- In Q4FY23, the company reported services revenue of USD 145.8 million, a sequential QoQ growth of 2.7%, and constant currency of 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 USD 604.2 million, an increase of 6.1% YoY
- For FY23, the PAT stood at 6.7% of the revenue
- The company reported net cash and cash equivalents of USD 201.5 million 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-Tech and 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 USD 147.5 million, a sequential QoQ growth of 0.4% in constant currency, and annual revenue of USD 604.2 million, representing YoY growth of 10.3% in constant currency. Our quarterly services revenue stood at USD 145.8 million, 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. But 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-centricity at 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 USD 201.5 million at the end of Q4FY23, an additional USD 22.1 million QoQ, and USD 45.8 million YoY. Our order book for Q4FY23 stood at USD 174.9 million, a 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 Rs 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 Rs 3.50 per equity share, subject to the approval of shareholders.”
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