Zensar shares end higher despite sharp drop in revenue in December quarter

The PAT, however, declined 17 percent compared to Rs 92.4 crore in the year-ago quarter.

Revenue from operations in rupee terms rose by 8.6 percent year-on-year to Rs 1,197.6 crore from Rs 1,102.5 crore a year ago. The revenue was down 3 percent compared to the September quarter. Revenue increased by 3.6 percent year-on-year on a constant currency basis.

The IT solutions company's dollar revenue declined 5.9 percent quarter-on-quarter to $145 .9 million in the December quarter from $155 million in the September quarter while the decline was 5.3 percent on a constant currency basis.

The company’s EBITDA improved to 11.3 percent from 8.5 percent in the September quarter. However, EBITDA in the December quarter remained lower year-on-year compared to 14.3 percent in the same period the previous fiscal.

The company reported cash of $179 million, which was 29 percent of its market valuation.

The revenue from the United States declined by 2.1 percent year-on-year and by 8 percent sequentially compared to the September quarter. The revenue from the European region saw an 18.7 percent growth year-on-year.

The utilisation rose by 310 basis points to 77.6 percent on a quarterly basis while attrition dropped by 350 basis points to 22.8 percent quarter-on-quarter in the December quarter. The top 5 clients declined 13.2 percent quarter-on-quarter due to furloughs at top clients.

Shares of the company ended 3.18 percent higher at Rs 228.45 on Tuesday.