Zensar Technologies Reports $591.3 Million Revenue in FY 2024

On April 25, 2024, Zensar Technologies Limited announced its financial results for its fourth quarter, ending March 31, 2024, of the fiscal year 2023-2024.

In FY 2024, the company reported services revenue of $591.3 million, a yearly YoY growth of 1.0% in reported currency and 1.3% in constant currency. In Q4 FY 2024, the company reported revenue of $148.1 million, sequential Quarter-on-quarter (QoQ) growth of 2.4% in reported currency and 2.0% in constant currency.

In the quarter ended March FY24, Zensar Technologies Limited’s Profit After Tax (PAT) stood at 14.1%, a quarterly YoY increase of 430 bps and sequential QoQ increase of 70 bps. In the same period, the company reported net cash of $261.7 million with a QoQ growth of 5.4%.

Commenting on the financial performance, the CEO and Managing Director of Zensar, Manish Tandon, said, “Sequential growth across all our verticals is a testimony of our robust strategy and our bias towards execution excellence. Our expertise in managing digital products, experiences, and engagement for our clients makes us a preferred partner of choice. We moved strength to strength in our client-centricity journey by achieving our best customer experience score ever in FY24.”

He further added, “We expanded our market reach with the help of our diversified service offerings. We continue to focus on client and employee satisfaction as our primary pillars of success. Our results give us the confidence to continue strategic investments in our service lines and enhance our capabilities in new age technologies such as Gen AI to foster innovation and deliver growth.”

Sachin Zute, CFO of Zensar, said, “We have achieved strong financial results for FY’24 owing to our focused efforts towards operational excellence and margin improvement tracks, which helped us improve our EBITDA by 640 bps to 17.8% and PAT by 690 bps to 13.6% on YoY basis. Our cash stood at $261.7M, and we further improved our DSO to 73 days at the end of FY’24. We continue to have strong momentum in our order book, which grew by 22% YOY and stood at $698 million for the year.”

He also stated, “For Q4FY24, our reported revenue is $148.1 million growth of 2.4% sequentially and 2.0% in constant currency. EBITDA margin for Q4 stood at 16.5%, which is above our guided range.”

In Q4 FY 2024, Zensar Technologies started providing Data Engineering and Security solutions for one of the largest digital communication conglomerates. They modernised Mainframe through their Digital Foundation Services for one of the largest retailers in South Africa. The company also stated that they started implementing an Enterprise Service Application Platform for injectable development and manufacturing companies and started building a global partner marketing SME centre of excellence by harnessing their Customer Experience for a Multinational Technology Company.

On April 26, 2024, the share price of Zensar Technologies Ltd opened at ₹595.00, touching the day’s high at ₹626.70, as of 9:57 AM on the NSE.

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