Zensar Technologies Limited · NSE:ZENSARTECH
Zensar Technologies — Q3 FY17 Earnings Presentation
25 slides from Zensar Technologies's earnings presentation, Jan 24, 2017
Slide 1: Zensar Technologies Analyst Presentation Q3 FY17
Zensar Technologies Analyst Presentation Q3 FY17 (Quarter ending Dec 31st) www.zensar.com | © Zensar Technologies 2016
Slide 2: Safe Harbor
Safe Harbor This presentation may include statements which may constitute forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, business development, market position, expenditures
Slide 3: Agenda
Agenda Zensar’s Q3 FY17 Business Performance Market Opportunity and Company Outlook RPG Group Overview www.zensar.com | © Zensar Technologies 2016 3
Slide 4: Highlights for Q3 FY17
Highlights for Q3 FY17 We continue to improve key metrics in line with our strategy All focus geographies registered growth in Constant Currency All focus Verticals registered growth in Constant Currency Key Fortune 1000 logos added Foolproof Acquisition completed and integration currently u
Slide 5: Highlights for Q3 FY17
Highlights for Q3 FY17 Revenue Performance : – Revenue grew 1.9% Quarter-on-Quarter and 5.0% Year-on-Year, both in CC terms – Revenue grew 1.3% Quarter-on-Quarter in $ terms – Strong Large deals momentum with large deal wins worth $ 126.7 Mn registered in the quarter Profitability and Gross Marg
Slide 6: Highlights for Q3 FY17
Highlights for Q3 FY17 Key Territory Performance: – US remained almost flat, growing by 0.3% Quarter-on-Quarter in Constant currency, largely due to furloughs and end of the year project ramp downs – Europe grew 30.2% Quarter-on-Quarter in Constant currency – Africa grew 8.1% Quarter-on-Quarter in
Slide 7: Digital Wins in Q3 FY17
Digital Wins in Q3 FY17 Development of a global unified commerce platform for a $3 Billion US based Clothing and accessories retailer Implementation of a next generation Commerce platform for one of America’s largest department store Digital Commerce enhancements and support for a multi-billio
Slide 8: Other Services Wins in Q3 FY17
Other Services Wins in Q3 FY17 Providing a managed service model for mainframe development for UK’s largest employee owned retailer Operations and Infrastructure management support for a US based multi-Billion dollar Airline Large Application development and support engagement for the largest
Slide 9: Analyst Recognition
Analyst Recognition A Challenger in Gartner's Magic Quadrant, for A Strong Performer in Forrester Wave - Application Oracle Application Services, North America Outsourcing Capabilities Of Midsize Offshore Vendors, 2016 A Niche and Established service provider in A Niche Player in Gartner’s Magic Qua
Slide 10: Thought Leadership with Key Analyst
Thought Leadership with Key Analyst Experience Management ERP Modernization Marketing Cloud Next Gen End User Computing Service Edge® - Smart Operations Platform Outcome based Testing Rush Hour Testing PAX
Slide 11: Business Performance
Business Performance Q3 FY17 24-01-2017 www.zensar.com | © Zensar Technologies 2016 11
Slide 12: Q3 FY17 Financials
Q3 FY17 Financials Q3 FY17 Growth Particulars Q-o-Q Y-o-Y USD Mn INR Cr USD INR CC USD INR CC Revenue $ 117.5 ₹ 792.2 1.3% 2.0% 1.9% 2.3% 4.7% 5.0% EBITDA $ 16.3 ₹ 110.2 (1.4%) (0.7%) (5.6%) (3.4%) EBIT $ 14.7 ₹ 99.3 (0.7%) 0.0% (5.5%) (3.3%) PAT $ 12.0 ₹ 81.1 17.1% 17.9% 10.9% 13.4% Impacting the F
Slide 13: Q3 FY17 Performance
Q3 FY17 Performance US$ Million Q3 FY17 Q2 FY17 Q3 FY16 QoQ Growth YoY Growth Revenue 117.5 116.0 114.8 1.3% 2.3% EBITDA 16.3 16.6 17.3 (1.4%) (5.6%) EBITDA% 13.9% 14.3% 15.1% Effective Tax Rate 29.1% 28.1% 30.4% PAT* 12.0 10.3 10.9 17.1% 10.9% PAT% 10.2% 8.9% 9.5% EPS - Diluted (INR) 18.0 15.9 15.8
Slide 14: Long-term Growth & Profitability Track Record
Long-term Growth & Profitability Track Record Revenue (USD Mn) EBITDA (USD Mn) PAT (USD Mn) 453 430 67 47 389 383 64 372 59 43 56 39 52 33 32 251 40 29 FY11 FY12 FY13 FY14 FY15 FY16 FY11 FY12 FY13 FY14 FY15 FY16 FY11 FY12 FY13 FY14 FY15 FY16 www.zensar.com | © Zensar Technologies 2016 11
Slide 15: Q3 FY17 Revenue Mix
Q3 FY17 Revenue Mix Services Geographies Europe 12% Application Management MVS Africa Infrastructure IMS US 76% 7% 9% Management 17% 75% 24% ROW 4% Retail, CPG Industries 25% Project Time & Financial Fixed Price Material Services 47% 53% Manufacturing 19% 52% Emerging 4% www.zensar.com | © Zensar Te
Slide 16: Q3 FY17 Client Profile
Q3 FY17 Client Profile Million Dollar Clients Q3 FY16 Q2 FY17 Q3 FY17 32 Key accounts identified for driving top-line growth with 20 Mn Dollar+ 2 2 2 focus on Multiservice deals, ‘Return on Digital’ and Client- 10 Mn Dollar+ 4 4 4 specific IP 5 Mn Dollar+ 5 6 6 3-in-a-box model for each account
Slide 17: Q3 FY17 Employee Details
Q3 FY17 Employee Details Headcount Utilization Q2 FY17 Headcount 8,316 Excluding Trainees 79.5% Net Additions 248 *Q3 FY17 Headcount 8,564 Attrition Technical – Onsite 1,619 Attrition (Annualised) 15.6% Technical – Offshore 5,761 Technical – BPO/Others 333 Revenue Mix Marketing 103 Onsite 67% Suppor
Slide 18: Stock Price and Shareholding
Stock Price and Shareholding Equity Share Information: Shareholding Pattern (as on 31st Dec 2016): • Share Price (20 Jan,17): INR 920 / share • Market Cap (20 Jan,17): INR 4,129 Crs. 13.8% • Financial Year: April to March Promoter 14.6% • Face Value: INR 10 / share 48.6% Apax Partners • Listed on In
Slide 19: Return on Digital Update
Return on Digital™ Update 24-01-2017 www.zensar.com | © Zensar Technologies 2016 19
Slide 20: Leveraging Digital Technologies for both internal and external benefits
Leveraging Digital Technologies for both internal and external benefits Digital Zensar Digital Services @ Zensar Accurate Data – Anytime – Anywhere Enhanced Focus on IP creation and aligning all solutions to our ‘Return on Digital’ Vision Re-Alignment and sync-up of all internal systems with new sys
Slide 21: Zensar's Digital Services Stack
Zensar’s Digital – 7 Services Stack Foolproof acquisition has strengthened Cloud Commerce Zensar CX/UX/DX capability significantly 35% growth 15% growth Customer/ Design Experience SaaS, IaaS, PaaS Omni channel experience Migration, Integration & development Ecommerce, Mobile Commerce, Data
Slide 22: RPG Group Overview
RPG Group Overview 24-01- www.zensar.com | © Zensar Technologies 22
Slide 23: RPG Group Overview: Unleash Talent, Touch Lives, Outperform
UNLEASHTALENT RPG Enterprises was founded in 1979 by Shri Rama Prasad Goenka, popularly known as RP Goenka, a pioneering fifth generation business leader from the Goenka family. The Goenkas have a TOUCHLIVES history of business dating back to 1820 AD in banking, textiles, jute and tea. Under RP Goen
Slide 24: RPG Group Key Financials
RPG Group Key Financials FY11-16 FY11-16 CAGR: CAGR: 12% EBITDA 17% PAT 19% Net Revenue (Rs Cr) EBITDA (Rs Cr) PAT (Rs Cr) 18,542 18,761 2,090 17,614 15,788 1,690 1,731 13,962 1,117 1,250 1,030 714 795 429 404 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 Net Worth (Rs Cr) ROCE ROE 20,000 5,814
Slide 25: Zensar Technologies
Zensar Technologies Impacting the Future of Enterprises 24-01-2017 www.zensar.com | © Zensar Technologies 2016 25