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

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

Zensar shares end higher despite sharp drop in revenue in December quarter
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By CNBCTV18.com Jan 24, 2023 5:23:51 PM IST (Published)

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

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 Engineering and technology solutions company Zensar Technologies Ltd. gained over 5 percent in trade on Tuesday after the company reported a 34 percent quarter-on-quarter jump in profit after tax (PAT) at Rs 76.5 crore for the December quarter as against Rs 56.8 crore in the September quarter, riding on better margins and higher other income.

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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.

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