Zensar Tech revenue up 7.1% QoQ, PAT up 13.7% in rupees

Midsize outsourcing and IT services firm Zensar Technologies reported higher profits for the April-June quarter, boosted by the sharp run-up in the value of the dollar against the rupee.

Revenue rose 2.3% on quarter in dollar terms and 7.1% in rupee terms.

Adjusted for currency movements, revenue was up 4.1% on quarter and 17.5% on year, the company said.

Operating profit (EBITDA) — a measure of the cash generated by the company’s operations before accounting for non-cash and non-operating items — fell 3.1% on quarter in dollar terms, but was higher by 1.4% in rupee terms.

EBIT, which is operating profit after accounting for non-cash items like the depreciation and amortization of the company’s assets, fell 6.7% on quarter in dollar terms and 2.4% in rupee terms.

On a year-on-year basis, both EBIT and EBITDA were up around 40% in rupee terms. In dollar terms, the year-on-year growth was around 28%.

At the net profit level, Zensar Tech reported an 8.6% increase in dollar terms on a quarter-on-quarter basis, while the growth was 13.7% in rupee terms.

On a year-on-year basis, net profit was up 37% in dollar terms and 49% in rupee terms.

Chief Financial Officer Navneet Khandelwal said the company saw sequential (quarter on quarter) growth in across all its geographies in constant currency terms.

It said revenue from ‘digital services’, such as cloud computing and analytics, rose 5.2% on quarter and comprised 44.2% of the company’s second quarter revenue.