Zensar Technologies reports 4.2% sequential revenue growth in Q1 FY25

Zensar Technologies, a prominent player in experience engineering and technology solutions, has announced robust financial results for the first quarter of fiscal year 2024-2025, showcasing significant growth across multiple business verticals.

For the quarter ending June 30, 2024, Zensar Technologies reported a revenue of $154.4 million, reflecting a sequential growth of 4.2% in reported currency and 4.3% in constant currency. On a year-over-year basis, revenue grew by 3.4% in reported currency. This steady revenue increase highlights the company’s strong performance and resilience in a competitive market.

Zensar’s net cash position improved to $280.9 million, marking a 7.3% quarter-over-quarter growth. This increase in cash reserves underscores the company’s financial stability and effective cash management strategies.

Zensar Technologies achieved notable growth across all its business verticals in Q1 FY25. The Banking and Financial Services sector reported a sequential revenue growth of 6.8% in both reported and constant currency. The Manufacturing and Consumer Services vertical saw a growth of 2.4% in reported currency and 2.7% in constant currency. The Telecommunications, Media, and Technology sector experienced a sequential revenue growth of 1.2% in both currency measures. Healthcare and Life Sciences led with a sequential revenue growth of 6.9% in both reported and constant currency.

The US region also performed well, with a sequential revenue growth of 6.5% in reported currency and 6.6% in constant currency.

On July 17, 2024, Zensar Technologies entered into a definitive agreement to acquire a 100% stake in Bridge View Life Sciences, a Pennsylvania-based technology and consulting solutions company specializing in the Life Sciences industry. This strategic acquisition aligns with Zensar’s focus on enhancing its Healthcare and Life Sciences vertical.

Manish Tandon, Chief Executive Officer and Managing Director of Zensar Technologies, commented on the company’s performance, stating, “Our unwavering commitment to engineering excellence, customer experience, and client engagement has enabled us to deliver strong results in Q1 FY25. The growth in overall company revenue, driven by sequential growth across all our verticals, reflects our strategic focus and operational efficiency.”

Tandon further emphasized the company’s financial discipline, noting, “Our disciplined approach has helped improve our cash and cash equivalents to $280.9 million, with a quarter-over-quarter addition of $19.2 million. We have also enhanced our Days Sales Outstanding (DSO) by one day to 72 days. Our Order Book stands at $154.0 million, with a Profit After Tax (PAT) margin of 12.3% for the quarter. We remain committed to growth and cost optimization to maintain robust financial performance.”

Significant Wins in Q1 FY25

Zensar Technologies secured several key contracts during the quarter, including:

– Migration of data and configuration to a new cloud-based instance for a customer specializing in water analytics and global packaging services.

– Partnership with a leading US-based manufacturer and distributor of analytical instruments to implement a centralized Service Desk.

– Multi-year partnership in Infrastructure Support, End User Computing, and Dispatch for a global mobility solution provider.

– Support for a global insurance client with core data engineering activities and cost reduction through semantic data modeling and advanced analytics.

– End-to-end application modernization for one of the largest banking vendors in South Africa.

Zensar Technologies, part of RPG Enterprises, is renowned for its expertise in digital products, experience design, data engineering, and advanced analytics. With a global presence spanning 30+ locations and a workforce of over 10,300 employees, Zensar serves more than 145 clients worldwide. The company’s solutions are designed to enhance client competitiveness, agility, and ability to navigate transformational changes.