Zensar Technologies Limited · NSE:ZENSARTECH
Zensar Technologies — Q2 FY25 Earnings Presentation
28 slides from Zensar Technologies's earnings presentation, Oct 23, 2024
Slide 1: Exchange intimation letter to BSE and NSE
Date: October 22, 2024 BSE Limited The National Stock Exchange of India Ltd. Corporate Service Department, Exchange Plaza, 03rd floor, 01st Floor, P. J. Towers, Plot No. C/1, ‘G’ block, Dalal Street, Bandra Kurla Complex, Bandra (E), Mumbai 400 001 Mumbai 400 051 Scrip ID: ZENSARTECH Symbol: ZENSART
Slide 2: Zensar reports 4.0% YoY revenue growth for Q2FY25
Zensar reports 4.0% YoY revenue growth for Q2FY25 Pune, India, October 22, 2024: Zensar Technologies, a leading experience engineering and technology solutions company, announced its consolidated financial results for its second quarter, ending September 30, 2024, of the fiscal year 2024-2025. Key H
Slide 3: Awards and Recognitions in Q2FY25
Awards and Recognitions in Q2FY25: • Best Digital Learning Initiative: Zensar was honoured at the 17th Edition of the Future of L&D Summit & Awards 2024, recognizing its innovative approaches to digital learning. • Best Soft Skill Development Program (Bronze): The Economic Times' ETHRWORLD Future Sk
Slide 4: Safe Harbor (continued)
price, fixed-time frame, or other contracts; client concentration; restrictions on immigration; our ability to manage international operations; reduced demand for technology in our service offerings; disruptions in telecommunication networks; our ability to successfully complete and integrate acquis
Slide 5: Zensar reports 4.0% YoY revenue growth for Q2FY25
Zensar reports 4.0% YoY revenue growth for Q2FY25 Pune, India, October 22, 2024: Zensar Technologies, a leading experience engineering and technology solutions company, announced its consolidated financial results for its second quarter, ending September 30, 2024, of the fiscal year 2024-2025. Key H
Slide 6: Awards and Recognitions in Q2FY25
Awards and Recognitions in Q2FY25: • Best Digital Learning Initiative: Zensar was honoured at the 17th Edition of the Future of L&D Summit & Awards 2024, recognizing its innovative approaches to digital learning. • Best Soft Skill Development Program (Bronze): The Economic Times' ETHRWORLD Future Sk
Slide 7: Q2FY25 Revenue and Profitability snapshot
Q2FY25 Revenue and Profitability snapshot: Q2FY25 Growth Particulars Q-o-Q Y-o-Y USD Mn INR Mn USD INR CC USD INR CC Revenue 156.2 13,080 1.2% 1.6% 0.3% 4.0% 5.4% 3.3% EBITDA 24.0 2,011 2.1% 2.6% -14.0% -12.9% EBIT 20.5 1,714 -0.5% 0.0% -12.9% -11.8% PAT 18.6 1,557 -1.8% -1.3% -11.5% -10.4% Performa
Slide 8: Income Statement (USD Mn)
Income Statement (USD Mn) Income Statement (USD Mn) Q2 FY 24 FY 24 Q1 FY 25 Q2 FY 25 Operating revenue 150.2 592.3 154.4 156.2 Sequential Growth 0.6% 4.2% 1.2% Year-Over-Year Growth -3.1% -2.0% 3.4% 4.0% Cost of revenue 102.4 404.0 107.5 112.3 Gross profit 47.7 188.3 46.9 43.9 Gross profit % of reve
Slide 9: Income Statement (INR Mn)
Income Statement (INR Mn) Income Statement (INR Mn) Q2 FY 24 FY 24 Q1 FY 25 Q2 FY 25 Operating revenue 12,408 49,019 12,881 13,080 Sequential Growth 1.1% 4.7% 1.6% Year-Over-Year Growth 0.5% 1.1% 5.0% 5.4% Cost of revenue 8,463 33,433 8,968 9,406 12,881 Gross profit 3,946 15,586 3,913 3,674 Gross pr
Slide 10: Other Metrics
Other Metrics Other Metrics Q2 FY 24 FY 24 Q1 FY 25 Q2 FY 25 Revenue By Service Offering (as % of Revenue) Digital Application Services 81.8% 81.6% 81.7% 79.7% Application Services + Enterprise Application (SaaS) 47.8% 47.3% 46.8% 46.1% Advanced Engineering Services 16.5% 16.4% 16.7% 16.2% Experienc
Slide 11: Other Metrics: Revenue from top clients
Other Metrics Q2 FY 24 FY 24 Q1 FY 25 Q2 FY 25 Revenue from top clients Revenue- top 5 clients 31.5% 30.7% 28.3% 28.1% Revenue- top 10 clients 42.2% 41.8% 42.1% 42.0% Revenue- top 20 clients 58.3% 58.3% 58.7% 58.4% Number of active clients 148 148 148 158 Onsite: Offshore (as % of Revenue) Revenue m
Slide 12: About Zensar
zZensar We conceptualize, build, and manage digital products through experience design, data engineering, and advanced analytics for 145+ global clients. Our solutions leverage industry-leading platforms and help clients be competitive, agile, and disruptive as they navigate transformational changes
Slide 13: zZensar
zZensar The results of these assumptions made relying on available internal and external information are the basis for determining the carrying values of certain assets and liabilities. Since the factors underlying these assumptions are subject to change over time, the estimates on which they are ba
Slide 14: Zensar Technologies Ltd. Quarter ending September 30, 2024
Quarter ending September 30, 2024 Zensar Technologies Ltd.
Slide 15: Safe Harbor
Safe Harbor Certain statements in this release concerning our future prospects are forward-looking statements which involve a number of underlying identified/non identified risks and uncertainties that could cause actual results to differ materially. This release and other statements – written and o
Slide 16: Total revenue, EBITDA and cash highlights
Total Revenue $201.8M 15.4% 20 bps 1.2% QoQ 10.1% $255.0M 40 bps $25.9M www.zensar.com | © Zensar Technologies 2024 | Page 3 *Cash & Cash Equivalent - post pay-out for dividend and an acquisition
Slide 17: Q2 FY25 revenue by vertical
QoQ cc QoQ cc QoQ cc QoQ cc QoQ cc QoQ cc QoQ cc YoY cc YoY cc YoY cc YoY cc YoY cc YoY cc YoY cc Q2 FY25 revenue Q2 FY25 revenue Q2 FY25 revenue Q2 FY25 revenue Q2 FY25 revenue Q2 FY25 revenue Q2 FY25 revenue • TMT - Telecommunication, Media and Technology erstwhile – Hitech • BFSI - Banking, Finan
Slide 18: Revenue walk and EBITDA walk
Revenue walk (in $M) Exchange TMT BFSI MCS HLS Q1FY25 Impact Q2FY25 EBITDA walk (in % of revenue) Exchange impact on Volume and Salary R&D tax credit Operational SG&A Q1FY25 GM Utilization Increments in Q1 Efficiencies Impact* Q2FY25 Gross margin (GM) Impact * Decrease in SG&A was primarily on accou
Slide 19: Client concentration
Q2FY25 Q1FY25 Q2FY24 Q2FY25 Q2FY24 Q1FY25 Q2FY24 Q1FY25 Q2FY25 Q2FY24 31.5% Q2FY24 42.2% Q2FY24 58.3% Q1FY25 28.3% Q1FY25 42.1% Q1FY25 58.7% Q2FY25 28.1% Q2FY25 42.0% Q2FY25 58.4% www.zensar.com | © Zensar Technologies 2024 | Page 6
Slide 20: www.zensar.com | © Zensar Technologies 2023 | Page7
www.zensar.com | © Zensar Technologies 2023 | Page7
Slide 21: Client case studies
Zensar initiated a transformative project with a leading Zensar has partnered with the world's first tech- One of the largest retail groups in Australia and New specialist in air transport communication and IT. We enabled, people-first, global mobility company to Zealand faced multiple challenges re
Slide 22: Leadership team
CEO and MD Chief Operating Officer Chief Financial Officer CHRO Exec VP & Head Manufacturing and Exec VP & Head – Telecommunication , Consumer Services, and Growth Office Media and Technology, and Africa Head- Healthcare and Life Sciences Exec VP & Head – Banking and Financial Exec VP & Head - Europ
Slide 23: ESG commitments and targets
Net-zero GHG Sustain Happiness Index Score at emissions by FY40 (Scope 1 and 2) 82 or more • 100% compliance for code of conduct 50% reduction in : Create a gender- training Energy Performance Index by FY30 diverse workplace with 35% women associates • Strengthen ombudsman process By FY25 by FY27 As
Slide 24: Share price, volume and shareholding
Share Price Volume 25 825 20 750 Millions 675 15 INR 600 10 525 5 450 375 0 30-Sep-23 31-Oct-23 30-Nov-23 31-Dec-23 31-Jan-24 29-Feb-24 31-Mar-24 30-Apr-24 31-May-24 30-Jun-24 31-Jul-24 31-Aug-24 30-Sep-24 (as of September 30, 2024) ▪ Share Price (30th September 2024): INR 677/ share ▪ Market Cap (3
Slide 25: RPG Group Update
RPG Group Update
Slide 26: RPG Group revenue, EBITDA and PAT FY20-24
Revenue FY20-24 CAGR 12.1% Gross Total Income (In Cr.) EBITDA (In Cr.) PAT (INR Cr.) 38,823 35,456 29,207 26,160 24,546 2,594 3,009 2,520 2,642 4,063 1,111 1,379 966 863 1,815 FY20 FY21 FY22 FY23 FY24 www.zensar.com | © Zensar Technologies 2024 | Page 13
Slide 27: Net worth, ROE, ROCE and market cap
Net Worth (Rs Cr.) ROE ROCE 12,742 13000 40.0% 11,113 11500 10,364 35.0% 9,677 10000 30.0% 8,369 8500 25.0% 7000 14.1% 13.2% 14.1% 20.0% 5500 13.3% 14.2% 14.2% 9.4% 15.0% 4000 9.3% 13.5% 11.0% 10.7% 13.6% 10.0% 2500 13.3% 10.9% 1000 8.6% 7.8% 5.0% -500 0.0% FY20 FY21 FY22 FY23 FY24 Group CEAT KEC ZE
Slide 28: Thank You
zensar Thank You An @RPG Company