Motilal Oswal
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Motilal Oswal

Deal wins in FY19 stand at $750 million, says Zensar Technologies

Updated : May 02, 2019 03:48 PM IST

Pune-based Zensar Technologies on Thursday said that deal wins in FY19 stood at $750 million and 15 percent of revenue is from cloud business after it reported around 14 percent increase in consolidated net profit at Rs 82.74 crore in the last quarter ended March 2019.

The company had posted a net profit of Rs 72.65 crore in the same period a year ago. Revenue from operations grew 29.78 percent to Rs 1,057.41 crore in the reported quarter from Rs 814.73 crore in the corresponding quarter of 2017-18.

In an interview to CNBC-TV18, Sandeep Kishore, managing director and chief executive officer, said, "37-38 percent of 17.6 percent revenue growth came on account of acquisitions and the rest from core organic growth business."

“Based on the pipelines and the deals we have, we feel good that we are executing quite well to the strategy that we have articulated several times before. Based on where I see today, I feel good about the FY20 as well,” said Kishore.

Kishore is also confident that margins going forward would likely be in the same range as the fourth quarter.

"The overall cloud business is 15 percent of revenues and out of that, the core part of the business contributed 9 percent. This business has higher revenues as it is more based on outcome, tools and platform than effort-led pricing structure. So the more we win on cloud infrastructure, the better margins it will deliver for us as an organisation,” he added.

According to Kishore, the deal wins for FY19 stood at $750 million, "The deal pipeline as of now is about $1 billion. We feel quite good based on the competitive landscape, our win rate is about 30 percent. So, reasonably positive about the pipeline and the conversion."

He said, "Hi-tech manufacturing, which is the core sector has done well. Financial services have done well, but retail has been a bit subdued. Zensar focuses to get retail back up and drive volume growth through next-generation cloud infrastructure services."
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