A great quarter for Zensar

We have announced the results for the first quarter of FY 12-13 and I am pleased to share that the consolidated revenue for the quarter shows 36.5% growth year-on-year. Q1 has been an excellent quarter and demonstrates the robust and risk mitigated nature of our business. Our strong focus on key verticals, diversified geographies and innovation in all our services has enabled us to weather the storm that is affecting the entire sector. We are confident that we will meet and exceed the goal of 18 % growth in Full Year 2012- 13.

Consolidated results for the quarter ended June 30, 2012

1.       Revenues grew Rs 544.32 Crore for the quarter ended June 30, 2012; with a YoY growth of 36.5%

2.       Net profit after tax was Rs 54.58 Crore for the quarter ended June 30, 2012 with a YoY growth of 101.7%

On a QoQ basis, Zensar’s revenue grew 10.2 % with focus verticals of Manufacturing and Insurance growing by 15.7% and 16.6% respectively. Net Profit grew 38.8 % QoQ.

Zensar has reported 20 new wins in this quarter some of which are multimillion dollar contracts across verticals. In the Manufacturing vertical, we have bagged a large deal in R12 implementation and Master data management with one of the largest private electrical contractors and one of the world’s largest clothing Manufacturers based in the US. Retail vertical continues to do well by adding one of the leading specialty retail stores for children’s apparel in USA for an Oracle R12 upgrade. Zensar will also support a leading bookstore chain in the Asia Pacific region in the areas of supply chain management and SDLC and function as their extended IT arm.  Another significant deal was signed with an eminent accountancy body in South Africa for a project on IT support and integration, in the Financial Services group.

Zensar has entered into a strategic, multimillion dollar deal in Infrastructure Management with one of the leading worldwide providers of enterprise-class, cloud-enabled hosting, managed applications and services based in the US for a project on Data Centre Migration. Another deal was signed to deliver mission-critical, IT infrastructure services to a leading provider of private student loan credit unions, and schools in the US.

The industry continues to recognise the strides we made been making  and for the second time in a row, Zensar has been featured amongst the top 12 Indian IT companies in the latest 'Global   Outsourcing 100' compiled by the International Association of Outsourcing Professionals (IAOP). 

    These are difficult times for the economy and for the industry but our success this quarter gives us the
    confidence that we can forge ahead

    Ganesh

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Towards the Olympics

Saina Jwala Ashwini Abhinav Gagan Leander Sania Mahesh Deepika Mary Kom and wrestlers and weightlifters- the list of medal possibilities from India is growing every Olympics !

Congratulations to Deep Sethi for his Go for Gold initiative that got the powers that be in Indian sports to wake up

Now lets wait and watch !

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Q1 Results Reason

Folks

Its always fun the week of the first results announcements for a quarter when no analyst knows quite how to call it - will TCS and/or Infosys spring a positive surprise on the 12th for the IT sector ?

JP Morgan talks about both secular headwinds and cyclical forces combining to exert pressure on the industry but also states that is is difficult to guage how much of the current slowdown is cyclical and how much structural ! While discretionary spending is likely to be low and large financial institutions could be approaching saturation in their Application Development and Maintenance spend, they believe a wave of spending on regulatory compliance and risk management could be a powerful offsetting driver in the BFS space.

The lesson for all of us in the industry is to be watchful but optimistic. While head winds abound, there are enough opportunities as well !

Ganesh

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Industry outlook - June 2012

The week ends on an optimistic note - Europe is stable, America hasnt sounded any more outsourcing warnings, the Indian PM is on a roll with his positive announcements - IT industry results start rolling next week - hope all the surprises are good ones !

On a recent interview with CNBC, I had to stave off a series of alarmist questions ? Will the "Move jobs to USA" bill be the death knell of outsourcing ? Will the US Government's intention to ask all software companies to do the work only in America be a deterrent ? Will NASSCOM have to downgrade its growth outlook for the industry further ?

At this point, I said and I reiterate here, there are no really negative signals anywhere. The industry is healthy and is still the best place for competent and ambitious young people to build their careers. Its not going to be an easy next nine months but then fortune favours the bold !

Enjoy the ride

Ganesh

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