ZENSARTECH · Information Technology
Zensar Technolgies Ltd. reported revenue of ₹1,326 cr for October to December 2024, +10.1% on the year and +1.4% on the quarter. It is the highest quarterly revenue in the last 7 quarters on record.
Operating profit (EBITDA) was ₹207 cr, a margin of 15.6%, −166 bps on the year and +24 bps on the quarter. Over the last 7 quarters the margin has ranged from 15.2% to 18.7%, averaging 16.8%. Operating costs grew +12.3%, faster than revenue at +10.1%, so operating profit grew less than sales.
Net profit was ₹160 cr, −1.2% on the year and +2.6% on the quarter, with earnings per share of ₹7.04. Profit before other income, one-offs and tax grew faster, at +5.3%; other income, one-offs or tax held the headline back. The tax rate of 24% is in line with its recent average.
On earnings per share of ₹28.52 over the last four quarters, the stock at ₹506.75 trades at 17.8 times trailing earnings.
Written from the quarterly statements. The filing read adds the balance sheet and cash flow, the auditor's review, segment results, one-off items line by line and what management said on the call.
Depreciation fell while the business grew. Were asset lives changed?
Source: Quarterly statements
Operating margin slipped on the year.
Source: Quarterly statements
Could not run on this quarter: Exceptional items that recur, Cash behind the profit, Receivables against sales, Inventory against sales, Borrowing while holding cash, Auditor's review or audit report, IPO money used as stated, Related-party transactions, Exits, postponements, restatements, Promoter pledges and allotments, Earlier promises against delivery, When the results were filed. Most need the filing read (balance sheet, cash flow, auditor, disclosures).
Net profit a year ago, each driver's change, and net profit now. Blue added profit, red took it away.
| Q2 FY24 | Q3 FY24 | Q4 FY24 | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | ₹1,241 cr | ₹1,204 cr | ₹1,230 cr | ₹1,288 cr | ₹1,308 cr | ₹1,326 cr | ₹1,359 cr | ₹1,385 cr | ₹1,421 cr | ₹1,431 cr | ₹1,450 cr | ₹1,508 cr |
| YoY | — | — | — | +5% | +5% | +10% | +10% | +8% | +9% | +8% | +7% | +9% |
| EBITDA margin | 18.6% | 17.3% | 16.5% | 15.2% | 15.4% | 15.6% | 15.6% | 15.2% | 15.5% | 17.5% | 16.3% | 14.7% |
| Other income, % of PBT | 16% | 20% | 23% | 20% | 20% | 15% | 20% | 24% | 20% | 14% | 24% | 23% |
| Exceptional items | — | — | — | — | — | — | — | — | — | — | — | — |
| Tax rate | 23% | 24% | 24% | 25% | 25% | 24% | 23% | 24% | 24% | 25% | 24% | 25% |
| Net profit | ₹174 cr | ₹162 cr | ₹173 cr | ₹158 cr | ₹156 cr | ₹160 cr | ₹176 cr | ₹182 cr | ₹182 cr | ₹200 cr | ₹211 cr | ₹184 cr |
| YoY | — | — | — | +1% | −10% | −1% | +2% | +15% | +17% | +25% | +20% | +1% |
| Core profit YoY | — | — | — | −8% | −12% | +5% | +4% | +10% | +14% | +27% | +14% | +3% |
| EPS | ₹7.68 | ₹7.14 | ₹7.65 | ₹6.97 | ₹6.86 | ₹7.04 | ₹7.77 | ₹8.01 | ₹8.01 | ₹8.79 | ₹9.26 | ₹8.08 |
| Flags | · | · | · | 2 | 2 | 1 | ✓ | ✓ | 1 | 1 | ✓ | ✓ |
Each quarter is read with the same rules. Balance-sheet and cash checks run on half-year and annual quarters; filing-read checks run where a read exists.
Zensar Technolgies Ltd. reported revenue of ₹1,326 cr (+10.1% on the year) and net profit of ₹160 cr (−1.2% on the year) for October to December 2024.
Profit before other income, exceptional items and tax moved +5.3% on the year, against −1.2% for reported profit.
1 check raised a question: Depreciation fell while the business grew. Were asset lives changed?
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