Zensar Technologies Reports Q1 FY24 Revenue Growth of 4.2%
Zensar Technologies reported a revenue of $154.4 million for Q1 FY24, marking a 4.2% increase from the previous quarter and a 3.4% year-over-year growth, with net cash rising to $280.9 million and a new acquisition boosting its healthcare sector.
by Damodharan N
Updated Jul 24, 2024
Table of Content
Zensar Technologies has announced its financial results for the first quarter of the fiscal year 2024-2025, ending on June 30, 2024. The company reported a revenue of $154.4 million for Q1 FY25, showing a growth of 4.2% compared to the previous quarter and a 3.4% increase from the same period last year.
Zensar’s net cash at the end of Q1 FY25 reached $280.9 million, up by 7.3% from the previous quarter. The company saw growth across all its business areas. Specifically, the banking and financial services sector grew by 6.8%, while manufacturing and consumer services saw a 2.4% increase. The telecommunications, media, and technology sectors grew by 1.2%, and the healthcare and life sciences sector experienced a 6.9% growth.
In the US region, revenue grew by 6.5%. Zensar has also announced the acquisition of Bridge View Life Sciences, a company in Pennsylvania that focuses on technology and consulting solutions for the life sciences industry. This acquisition aligns with Zensar’s emphasis on expanding its healthcare and life sciences services.
Manish Tandon, CEO and Managing Director of Zensar, stated, “Our unwavering commitment to engineering excellence, customer experience, and client engagement helped us deliver strong results in Q1 FY25. We recorded growth in overall company revenue driven by sequential growth across all our verticals.”
He further added, “Our disciplined approach to execution helped us improve cash and cash equivalents to $280.9 million, a QoQ addition of $19.2 million. Sequentially, we improved our DSO by one day to 72 days. Our order book stood at $154.0 million, and PAT was at 12.3% for the quarter. We continue to stay focused on growth and cost optimization to maintain robust financial performance.”
Source:Here
Zensar Technologies Q1 FY24 Results
Zensar Technologies has released its financial results for the first quarter of fiscal year 2024-2025. The company reported a revenue of $154.4 million for Q1 FY25, reflecting a 4.2% increase from the previous quarter and a 3.4% rise compared to the same quarter last year. In constant currency terms, the revenue grew by 4.3% quarter-over-quarter and 3.3% year-over-year.
The company's EBITDA for Q1 FY25 was $23.5 million, showing a decrease of 3.9% from the last quarter and a 16.0% decline year-over-year. The EBITDA margin for Q1 FY25 was 15.2%, up from 14.9% in Q4 FY24 but down from 18.7% in Q1 FY24.
Zensar's EBIT for Q1 FY25 was $20.6 million, down 4.9% from Q4 FY24 and 10.0% from Q1 FY24. The EBIT margin stood at 13.4%, compared to 14.1% in the previous quarter and 17.2% in the same quarter last year.
Profit After Tax (PAT) was $18.9 million, a decrease of 9.4% from the previous quarter but a slight increase of 1.1% year-over-year. The PAT margin for Q1 FY25 was 12.3%, showing a slight decrease from 14.0% in Q4 FY24 and 12.7% in Q1 FY24.
Key Highlights:
- Revenue Growth: Zensar reported Q1 FY25 revenue of $154.4 million, marking a sequential quarter-on-quarter (QoQ) growth of 4.2% in reported currency and 4.3% in constant currency. Year-over-year (YoY), this represents a 3.4% increase in reported currency.
- Net Cash: The company ended Q1 FY25 with net cash of $280.9 million, reflecting a QoQ growth of 7.3%.
- Vertical Growth: For the second consecutive quarter, all verticals experienced growth:
- Banking and Financial Services: 6.8% QoQ revenue growth in both reported and constant currency.
- Manufacturing and Consumer Services: 2.4% QoQ growth in reported currency and 2.7% in constant currency.
- Telecommunication, Media, and Technology: 1.2% QoQ growth in both reported and constant currency.
- Healthcare and Life Sciences: 6.9% QoQ growth in both reported and constant currency.
|
Particulars |
Q1 FY25 USD Mn |
Q1 FY25 INR Mn |
Q-o-Q Growth (USD) |
Q-o-Q Growth (INR) |
Y-o-Y Growth (USD) |
Y-o-Y Growth (INR) |
Constant Currency (CC) Growth (USD)Q-o-Q |
Constant Currency (CC) Growth (INR)Y-o-Y |
|
Revenue |
154.4 |
12,881 |
4.2% |
4.7% |
3.4% |
5.0% |
4.3% |
3.3% |
|
EBITDA |
23.5 |
1,961 |
-3.9% |
-3.4% |
-16.0% |
-14.8% |
- |
- |
|
EBIT |
20.6 |
1,714 |
-4.9% |
-4.4% |
-10.0% |
-8.7% |
- |
- |
|
PAT |
18.9 |
1,579 |
-9.4% |
-8.9% |
-0.4% |
1.1% |
- |
- |
Overall, Zensar's performance in Q1 FY25 shows solid revenue growth despite declines in profitability metrics. The company continues to focus on its strategic investments and client engagements to drive future growth.
Zensar Technologies
Zensar Technologies, headquartered in Pune, India, is a prominent technology solutions company part of the USD 4.4 billion RPG Group. With over 10,500 employees in 30+ locations worldwide, Zensar specializes in delivering advanced digital solutions and engineering expertise to over 145 global clients.
The company focuses on innovation and rapid execution to help businesses adapt and succeed in a constantly changing environment. Zensar's mission is to ensure clients thrive by offering impactful solutions that drive growth and success.
Zensar Technologies Reports Q1 FY24 Revenue Growth of 4.2% - FAQs
1. What was Zensar’s revenue for Q1 FY24?
Zensar Technologies reported a revenue of $154.4 million for Q1 FY24.
2. How much did Zensar’s revenue grow QoQ in Q1 FY24?
The revenue grew by 4.2% compared to the previous quarter in reported currency.
3. What was the YoY revenue growth for Zensar in Q1 FY24?
The revenue increased by 3.4% compared to the same quarter last year in reported currency.
4. How did Zensar’s revenue perform in constant currency terms for Q1 FY24?
In constant currency terms, revenue grew by 4.3% quarter-over-quarter and 3.3% year-over-year.
5. What was Zensar’s net cash at the end of Q1 FY24?
At the end of Q1 FY24, Zensar had net cash of $280.9 million.
6. How much did Zensar’s net cash increase QoQ in Q1 FY24?
The net cash increased by 7.3% from the previous quarter.
7. Which business vertical saw the highest growth in Q1 FY24?
The Healthcare and Life Sciences sector saw the highest growth, with a 6.9% increase quarter-over-quarter.
8. What was the EBITDA for Zensar in Q1 FY24?
Zensar’s EBITDA for Q1 FY24 was $23.5 million.
9. How did Zensar’s EBITDA change QoQ in Q1 FY24?
EBITDA decreased by 3.9% compared to the previous quarter.
10. What was the YoY change in EBITDA for Zensar in Q1 FY24?
EBITDA decreased by 16.0% compared to the same quarter last year.
11. What was Zensar’s EBITDA margin for Q1 FY24?
The EBITDA margin for Q1 FY24 was 15.2%.
12. How did the EBITDA margin in Q1 FY24 compare to Q4 FY24?
The EBITDA margin increased from 14.9% in Q4 FY24 to 15.2% in Q1 FY24.
13. What was Zensar’s EBIT for Q1 FY24?
Zensar’s EBIT for Q1 FY24 was $20.6 million.
14. How much did Zensar’s EBIT decrease QoQ in Q1 FY24?
EBIT decreased by 4.9% compared to the previous quarter.
15. What was the YoY change in EBIT for Zensar in Q1 FY24?
EBIT decreased by 10.0% compared to the same quarter last year.
16. What was Zensar’s EBIT margin for Q1 FY24?
The EBIT margin for Q1 FY24 was 13.4%.
17. How did the EBIT margin in Q1 FY24 compare to Q4 FY24?
The EBIT margin decreased from 14.1% in Q4 FY24 to 13.4% in Q1 FY24.
18. What was Zensar’s PAT for Q1 FY24?
The Profit After Tax (PAT) for Q1 FY24 was $18.9 million.
19. How did Zensar’s PAT change QoQ in Q1 FY24?
PAT decreased by 9.4% compared to the previous quarter.
20. What was the YoY change in PAT for Zensar in Q1 FY24?
PAT increased by 1.1% compared to the same quarter last year.
21. What was Zensar’s PAT margin for Q1 FY24?
The PAT margin for Q1 FY24 was 12.3%.
22. How did the PAT margin in Q1 FY24 compare to Q4 FY24?
The PAT margin decreased from 14.0% in Q4 FY24 to 12.3% in Q1 FY24.
23. What is Zensar’s order book value for Q1 FY24?
Zensar’s order book value stood at $154.0 million for Q1 FY24.
24. What was the improvement in Zensar’s Days Sales Outstanding (DSO) for Q1 FY24?
Zensar improved its Days Sales Outstanding (DSO) by one day, bringing it to 72 days.
25. What acquisition did Zensar announce in Q1 FY24?
Zensar announced the acquisition of Bridge View Life Sciences, a company based in Pennsylvania that focuses on technology and consulting solutions for the life sciences industry.
26. How did the US region’s revenue perform in Q1 FY24?
Revenue from the US region grew by 6.5% in reported currency.
27. What growth did the banking and financial services sector experience in Q1 FY24?
The banking and financial services sector saw a 6.8% growth quarter-over-quarter in both reported and constant currency.
28. How did the manufacturing and consumer services sector perform in Q1 FY24?
The manufacturing and consumer services sector experienced a 2.4% growth quarter-over-quarter in reported currency and 2.7% in constant currency.
29. What was the growth in telecommunications, media, and technology sectors in Q1 FY24?
The telecommunications, media, and technology sectors saw a 1.2% growth quarter-over-quarter in both reported and constant currency.
30. What was the QoQ growth for the healthcare and life sciences sector in Q1 FY24?
The healthcare and life sciences sector experienced a 6.9% growth quarter-over-quarter in both reported and constant currency.