Zensar Technologies: Profit plunges 40 per cent in Q3
Zensar Technologies reported a 40 per cent QoQ decline in consolidated net profit to Rs. 55.28 crore in the December 2018 quarter.
The net profit of the firm was negatively impacted on two main counts; foreign exchange losses and lower operating margins as several of the company's deals are currently in transition. The deal momentum remained strong and Zensar won some significantly large deals in the quarter with total contract value (TCV) crossing US$200-million mark for the first time.
The company's revenue from operations rose 6.9 per cent QoQ to Rs. 1,035.55 crore. EBIT for the quarter plunged by 13.7 per cent QoQ to Rs. 86.7 crores with a corresponding margin contraction of 200 bps. EBIT margin for the quarter stood at 8.4 per cent. Digital services contributed 44.9 per cent to the total revenue in the December 2018 quarter, growing at 5.3 per cent QoQ.
On Tuesday the stock of Zensar opened at Rs. 219.80 per share and touched high/low of 229/219 per share.