Zensar Technologies slumps 11% after net profit decline in Q3

Zensar Technologies slumps 11% after net profit decline in Q3

Shares of Zensar Technologies slumped 11% after the company’s net profit dropped by 32.6% at Rs39.5cr for the December 2019 quarter as against a net profit of Rs58.6cr in the year-ago period.

Its revenue stood at Rs1,020.6cr in the reported quarter from Rs1,022cr in the corresponding period of the previous financial year.

In dollar terms, the net profit declined 31.7% to USD 5.6 million, while revenue grew 1.1% to USD 143.3 million in the reported quarter as against the year-ago period.

In sequential terms, revenues have declined by 5.9% in dollar terms and consequently, PAT for the quarter also declined sequentially and stood at 3.9% of revenue. Digital revenues continue to grow and are now 54.1% of Q3FY20 revenue.

The Board of Directors has approved an interim dividend of Re1 per share.

Sandeep Kishore, Chief Executive Officer and Managing Director, Zensar Technologies said, “A combination of furloughs, project-specific customer ramp downs and continued softness in the retail vertical resulted in a soft quarter.  However, our digital business across our cloud and infrastructure and applications continued its growth momentum registering a growth of 20.2 % yoy.”

Zensar Technologies Ltd is currently trading at Rs176.15 down by Rs22.3 or 11.24% from its previous closing of Rs198.45 on the BSE.

The scrip opened at Rs188 and has touched a high and low of Rs188 and Rs172 respectively.

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