Zensar Technologies (504067) Q4 01/02 earnings summary

Executive summary

• FY02 was a year of consolidation amid the IT downturn; new business streams, 34 client wins and broader geographies helped maintain standalone profitability.

• Consolidated revenue fell 17% to Rs.20,150.07 lakhs and PBT dropped to Rs.1,146.33 lakhs; standalone revenue rose 10% to Rs.8,491.89 lakhs, including exceptional income of Rs.844.02 lakhs.

Financial highlights

• Consolidated service revenue was Rs.18,672.15 lakhs, down 18% YoY; consolidated PAT was Rs.806.51 lakhs versus Rs.2,297.04 lakhs.

• Standalone PBT rose 23% to Rs.1,587.30 lakhs; PAT was Rs.1,122.31 lakhs versus Rs.1,145.41 lakhs.

• Standalone miscellaneous income included Rs.844.02 lakhs from a full and final out-of-court dispute settlement.

• Consolidated US GAAP revenue was Rs.1,865,267 thousand and net income Rs.58,590 thousand; operating loss was Rs.4,336 thousand.

Outlook and guidance

• FY03 priorities: deepen Retail and Financial Services propositions; organize delivery into five practices and invest in IPR, methodologies and delivery infrastructure.

• China and Germany initiatives were planned; growth strategy also included acquisitions, alliances and tie-ups, alongside expansion into BPO.

• Solution BluePrinting was expected to cut development time by up to 30% and costs by up to 50%.