Zensar Technologies (504067) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 revenue reached $157.0M, up 0.5% sequentially and 8.6% year-over-year, marking one of the best Q3 performances in recent years.

• EBITDA margin stood at 15.6%, improving by 20 bps quarter-over-quarter, with PAT margin at 12%.

• Order book hit a record $205.3M, with broad-based contributions and no large deals included.

• Cash and cash equivalents at quarter-end were $269.2M, up $14.2M from the previous quarter.

• Interim dividend of INR 2 per share declared, payable to shareholders as of January 28, 2025.

Financial highlights

• Q3 FY25 revenue: $157.0M, up 0.5% QoQ and 8.6% YoY in reported currency.

• Gross margin: 30.1%, up 200 bps QoQ due to improved utilization and operational efficiencies.

• EBITDA margin: 15.6%, up 20 bps QoQ; PAT margin: 12%.

• Cash reserves increased to $269.2M, a $14.2M QoQ rise; DSO improved by 3 days to 68 days.

• Consolidated revenue from operations for Q3 FY25 was ₹13,256 million, up from ₹12,041 million in Q3 FY24.

Outlook and guidance

• Pipeline remains healthy, with strong order bookings for two consecutive quarters above $200M.

• Targeting double-digit growth for FY26, with continued focus on margin improvement and annuity revenues.

• Mid-teens EBITDA margin guidance maintained, with ongoing investments in business growth.

• Continued focus on cloud, infrastructure, and AI-driven solutions for clients.

• Interim dividend declared for FY25, with record date set for January 28, 2025.