Zensar Technologies (504067) Q4 03/04 earnings summary

Executive summary

• Consolidated operating revenue reached Rs 267.07 crore, up 17%; consolidated profit after tax rose 27.52% to Rs 12.57 crore.

• Offshore revenue grew 41%; expansion into BPO and continued investment in technology, people and delivery capacity shaped the year.

Financial highlights

• Consolidated total income was Rs 273.65 crore versus Rs 232.46 crore YoY; operating income was Rs 267.07 crore.

• Consolidated PBT rose 5.28% to Rs 16.82 crore; PAT increased 27.52% to Rs 12.57 crore.

• Standalone operating income increased 31.82% to Rs 125.98 crore; standalone PAT rose 71.60% to Rs 13.9965 crore.

• Consolidated EPS was Rs 5.40 basic and Rs 5.38 diluted, versus Rs 4.23 and Rs 4.21, respectively, in FY 2002-03.

Outlook and guidance

• Management described the business pipeline as healthy and targeted continued customer satisfaction, profitability and expansion into new opportunities.

• A 2,000-seat Kharadi campus was under construction; Phase I was expected to add 1,100 seats during FY 2004-05.

• BPO voice capacity of 300 seats was planned to scale to 1,400 seats by March 2005.

• Planned BPO services focused on inbound customer service and technical/product support, plus online e-bookkeeping contracts.