IT services firm Zensar Technologies Ltd on Tuesday (July 22) reported a 15.3% year-on-year (YoY) increase in its first quarter net profit at ₹182 crore over ₹157.9 crore in Q1FY25.
The company’s revenue from operations was up 7.5% to ₹1,385 crore from ₹1,288.1 crore a year ago. The company reported dollar revenue of $162 million in the June quarter, marking a YoY growth of 4.9% in reported currency and 3.8% in constant currency.
On a sequential basis, revenue grew 3.3% in reported currency and 1.9% in constant currency. Gross margins for the quarter stood at 30.5%, reflecting a sequential improvement of 20 basis points.
Also Read: Zensar eyes mid-teen margins, targets large deals as clients cut tech spends
A closer look
In terms of regional performance, the US reported a sequential growth of 4.3% and a year-on-year increase of 4.3% in constant currency. Europe saw a sequential decline of 5.8% but registered a growth of 3.8% over the year-ago peiod. The Africa region posted a sequential increase of 1.5% and a modest YoY growth of 0.6%, both in constant currency.
From a vertical perspective, banking and financial services saw a sequential revenue growth of 2.9% and a YoY increase of 8.2% in constant currency. The telecommunication, media and technology segment recorded a sequential growth of 5.5% but experienced an on-year decline of 5.6%.
Manufacturing and consumer services reported a sequential decline of 4.1%, though it posted a 1.1% year-on-year growth. Healthcare and life sciences registered strong performance with a sequential growth of 5.2% and a year-on-year growth of 16.5%, all in constant currency.
Also Read: Zensar Technologies Q4 Results | Net profit up 2% to ₹176 crore, revenue grows 11%
Revenue driven by ‘AI-led deals’
Manish Tandon, CEO and Managing Director, Zensar, said, “We delivered a strong quarter with steady revenue growth, driven by growing traction in AI-led deals and impactful solution delivery. With our lowest attrition in two years, I’m proud of our people and the culture we’ve built. Our ongoing focus on reskilling and upskilling in next-gen tech has resulted in healthy utilisation levels.”
Pulkit Bhandari, CFO, Zensar, said, “We have achieved robust revenue of $162 million for this quarter, translating into 1.9% growth in constant currency. EBITDA margins stood at 15.2% with a PAT margin of 13.1%. We booked orders worth $172 million, which is an increase of 11.7% YoY. We have healthy cash and investment reserves of $315.7 million.”
The results came after the close of the market hours. Shares of Zensar Technologies Ltd ended at ₹811.40, down by ₹33.55 or 3.97%, on the BSE.
