Zensar Technologies Limited · NSE:ZENSARTECH

Zensar Technologies — Q1 FY2020 Earnings Presentation

47 slides from Zensar Technologies's earnings presentation, Aug 6, 2019

  1. Slide 1: Outcome of the Board Meeting held on August 6, 2019

    Registered Office : Zensar Technologies Limited Zensar Knoewledge Park, Plot No. 4, MIDC Kharadi, Off Nagar Road, Pune 411014, India. Tel: +91 (20) 6607 4000, 27004000 Fax: +91 (20) 6605 7888, CIN: L72200PN1963PLC012621 Date: August 6, 2019 BSE Limited The National Stock Exchange of India Ltd. Corpo

  2. Slide 2: Reconstitution of Risk Management Committee

    Registered Office : Zensar Technologies Limited Zensar Knoewledge Park, Plot No. 4, MIDC Kharadi, Off Nagar Road, Pune 411014, India. Tel: +91 (20) 6607 4000, 27004000 Fax: +91 (20) 6605 7888, CIN: L72200PN1963PLC012621 3. Reconstitution of Risk Management Committee The Risk Management Committee has

  3. Slide 3: Additional Information on Director Getting Appointed

    Registered Office : Zensar Technologies Limited Zensar Knoewledge Park, Plot No. 4, MIDC Kharadi, Off Nagar Road, Pune 411014, India. Tel: +91 (20) 6607 4000, 27004000 Fax: +91 (20) 6605 7888, CIN: L72200PN1963PLC012621 ADDITIONAL INFORMATION ON DIRECTOR GETTING APPOINTED Sr. Particulars Ms. Radha R

  4. Slide 4: Independent Auditor's Review Report on Consolidated Results

    Deloitte Chartered Accountants 706, 'B' Wing, 7"' Floor ICC Trade Tower Haskins & Sells LLP Senapatl Bapat Road Pune-411016 Maharashtra, India Tel: +9120 6624 4600 Fax: +91 20 6624 4605 INDEPENDENT AUDITOR'S REVIEW REPORT ON REVIEW OF INTERIM CONSOLIDATED FINANCIAL RESULTS TO THE BOARD OF DIRECTORS

  5. Slide 5: Auditor's Review Report (continued)

    Deloitte Haskins & Sells LLP Regulations, 2015, as amended, including the manner in which it is to be disclosed, or that it contains any material misstatement. For Deloitte Haskins & Sells LLP Chartered Accountants (Firm's Registration No. 117366W/W-100018) Partner (Memb Place: Pune (UDIN: I q 03�01

  6. Slide 6: Statement of Unaudited Consolidated Results Q1 2019

    Zensar Technologies limited Registered Office : Zensar Knowledge Park, Kharadi, Plot# 4, MIDC, Off Nagar Road, Pune - 411014, India Statement of Unaudited Consolidated Results for the Quarter ended 30th lune, 2019. (Rs. In Lakhsl Ouarter ended Year Ended Particulars 30-Jun-2019 31-Mar-2019 30-Jun-20

  7. Slide 7: Statement of Segment Assets & Liabilities

    Statement of Segment Assets & Liabilities 30-Jun-2019 31-Mar-2019 30-Jun-2018 Unaudited Audited Unaudited 1 Segment Assets Trade Receivables Application Management Services 74,369 72,964 58,875 Infrastructure Management Services 13,775 14,657 12,564 Total Trade Receivables 88,144 87,621 71,439 Inven

  8. Slide 8: Notes to Consolidated Results

    Notes: 1 These unaudited results have been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereu

  9. Slide 9: Independent Auditor's Review Report on Standalone Results

    Deloitte Chartered Accountants 706, 'B' Wing, 7'" Floor ICC Trade Tower Haskins & Sells LLP Senapati Bapat Road Pune - 411 016 Maharashtra, India Tel: +91 20 6624 4600 Fax: +91 20 6624 4605 INDEPENDENT AUDITOR'S REVIEW REPORT ON REVIEW OF INTERIM STANDALONE FINANCIAL RESULTS TO THE BOARD OF DIRECTOR

  10. Slide 10: Auditor's Review Report (continued)

    Deloitte Haskins & Sells LLP including the manner in which it is to be disclosed, or that it contains any material misstatement. For Deloitte Haskins & Sells LLP Chartered Accountants (Firm's Registration No. 117366W/W-100018) Partner (Members ip No. 38019) Place: Pune ) Date: August 6, 2019

  11. Slide 11: Statement of Unaudited Standalone Results Q1 2019

    Zensar Technologies Limited Registered Office : Zensar Knowledge Park, Kharadi, Plot # 4 , MIDC, Off Nagar Road, Pune - 411014, India Statement of Unaudited Standalone Results for the Quarter ended 30th June, 2019. (Rs, in Lakhsl Quarter ended Year Ended Particulars 30-Jun-2019 31-Mar-2019 30-Jun-20

  12. Slide 12: Notes to Standalone Results

    Notes: 1 These unaudited results have been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard 34 "Interim Financial Reporting" {"Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013 read with relevant rules Issued thereu

  13. Slide 13: Zensar reports 16.4% YoY revenue growth; 9th consecutive quarter of growth

    Zensar reports 16.4% YoY revenue growth; records 9th consecutive quarter of growth Digital is at 48.5% of revenues Pune, India, August 6, 2019: Zensar Technologies, a leading digital solutions and technology services company that specialises in partnering with global organisations on their Digital t

  14. Slide 14: Q1 FY20 Revenue and profitability snapshot

    Q1 FY 20 Revenue and profitability snapshot Q1 FY20 Growth Particulars Q-o-Q Y-o-Y USD Mn INR Cr USD INR CC USD INR CC Revenue $ 153.3 ₹ 1066.1 3.1% 1.8% 3.6% 16.4% 20.8% 18.8% EBITDA $ 21.8 ₹ 151.5 11.2% 9.8% 16.6% 21.0% EBIT $ 16.3 ₹ 113.6 1.9% 0.6% 2.3% 6.1% PAT $ 11.3 ₹ 78.7 (8.3%) (9.5%) (9.3%)

  15. Slide 15: About Zensar

    About Zensar (www.zensar.com) Zensar is a leading digital solutions and technology services company that specialises in partnering with global organisations across industries on their Digital Transformation journey. A technology partner of choice, backed by strong track-record of innovation; credibl

  16. Slide 16: Zensar reports 16.4% YoY revenue growth; 9th consecutive quarter of growth

    Zensar reports 16.4% YoY revenue growth; records 9th consecutive quarter of growth Digital is at 48.5% of revenues Pune, India, August 6, 2019: Zensar Technologies, a leading digital solutions and technology services company that specialises in partnering with global organisations on their Digital t

  17. Slide 17: Q1 FY20 Revenue and profitability snapshot

    Q1 FY 20 Revenue and profitability snapshot Q1 FY20 Growth Particulars Q-o-Q Y-o-Y USD Mn INR Cr USD INR CC USD INR CC Revenue $ 153.3 ₹ 1066.1 3.1% 1.8% 3.6% 16.4% 20.8% 18.8% EBITDA $ 21.8 ₹ 151.5 11.2% 9.8% 16.6% 21.0% EBIT $ 16.3 ₹ 113.6 1.9% 0.6% 2.3% 6.1% PAT $ 11.3 ₹ 78.7 (8.3%) (9.5%) (9.3%)

  18. Slide 18: Performance Highlights

    ORPG Performance Highlights ZenSar Revenuein USD Million 9% CaGR: 9 — __ sete 1533 —— 148.7 131.7 Qi FY19 Q4 FY19 Q1FY20 PAT in USD Million ___ 4QCQGR: (2.4%) enn 125 12.3 11.3 Qi FY19 Q4 FY19 Q1FY20 EBITDA in USD Million a 28 19.6 18.7 Qi FY19 Q4 FY19 Qi FY20 Clients Q1FY19 Q4 FY19 Q1FY20 =@=5 Mn D

  19. Slide 19: Income Statement (USD Mn)

    Income Statement (USD Mn) Income Statement (USD Mn) Q1 FY 19 Q4 FY 19 FY 19 Q1 FY 20 Operating revenue 131.7 148.7 557.2 153.3 Sequential Growth 7.5% 4.9% 3.1% Year-Over-Year Growth 18.1% 21.3% 19.5% 16.4% Cost of revenue 90.8 105.7 394.6 108.2 Gross profit 41.0 43.0 162.6 45.1 Gross profit % of rev

  20. Slide 20: Income Statement (INR Mn)

    Income Statement (INR Mn) Income Statement (INR Mn) Q1 FY 19 Q4 FY 19 FY 19 Q1 FY 20 Operating revenue 8,827 10,476 38,988 10,661 Sequential Growth 11.9% 2.5% 1.8% Year-Over-Year Growth 22.8% 32.9% 29.7% 20.8% Cost of revenue 6,083 7,449 27,626 7,524 Gross profit 2,744 3,027 11,362 3,137 Gross profi

  21. Slide 21: Other Metrics: Revenue by Service, Industry, Geography

    Other Metrics Q1 FY 19 Q4 FY 19 FY 19 Q1 FY 20 Revenue By Service Offering Digital & Application Services (DAS) 84.9% 84.9% 84.4% 82.8% Digital Services 39.2% 41.5% 40.3% 41.4% Core Application Services 45.7% 43.4% 44.1% 41.4% Cloud and Infrastructure Services (CIS) 15.1% 15.1% 15.6% 17.2% Cloud, Di

  22. Slide 22: Other Metrics: Constant Currency

    Other Metrics Q1 FY 19 Q4 FY 19 FY 19 Q1 FY 20 Constant Currency Operating revenue (Constant Currency mn) 132.7 148.2 561.1 154.0 Sequential Growth 8.3% 4.5% 20.3% 3.6% Year-Over-Year Growth 16.4% 24.3% 20.3% 18.8% Constant Currency Growth By Service Offering (QoQ %) Digital & Application Services (

  23. Slide 23: Other Metrics: Client and Employee Data

    Other Metrics Q1 FY 19 Q4 FY 19 FY 19 Q1 FY 20 Q3 FY 19 FY 18 Q2 FY 19 Q3 FY 19 Client Data Number of million dollar Clients (LTM Revenue) 1 Million dollar + 86 90 90 91 5 Million dollar + 19 19 19 20 10 Million dollar + 5 9 9 9 20 Million dollar + 2 2 2 2 Revenue from top clients Revenue- top 5 cli

  24. Slide 24: Other Metrics: Exchange Rates and Cash

    Other Metrics Q1 FY 19 Q4 FY 19 FY 19 Q1 FY 20 Exchange Rates Rupee Dollar Rate Period Closing Rate 68.5 69.2 69.2 69.0 Period Average Rate 67.0 70.5 69.9 69.5 Rupee Euro Rate Period Closing Rate 79.8 77.7 77.7 78.2 Period Average Rate 79.9 80.0 80.9 78.5 Rupee GBP Rate Period Closing Rate 90.0 90.5

  25. Slide 25: Other Metrics: Debt, Hedges, Capex, EPS, Shareholding

    Other Metrics Q1 FY 19 Q4 FY 19 FY 19 Q1 FY 20 Summary of Debt Debt (USD mn) Short-term debt 13.0 23.0 23.0 26.0 Long-term debt 20.0 20.0 20.0 20.0 Total 33.0 43.0 43.0 46.0 Outstanding Hedges USD Value 91.2 115.2 115.2 108.9 Avg. Rate/ INR 67.6 72.0 72.0 71.6 GBP Value 12.9 15.8 15.8 13.3 Avg. Rate

  26. Slide 26: About Zensar

    About Zensar (www.zensar.com) Zensar is a leading digital solutions and technology services company that specialises in partnering with global organisations across industries on their Digital Transformation journey. A technology partner of choice, backed by strong track-record of innovation; credibl

  27. Slide 27: Zensar Technologies Analyst Presentation, Q1 FY20

    Zensar Technologies Analyst Presentation, Q1 FY20 Quarter Ending June 30, 2019 www.zensar.com | © Zensar Technologies 2019

  28. Slide 28: 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

  29. Slide 29: Company Overview

    Company Overview • Part of $3 B RPG Group • Portfolio Company of the $40 B APAX Group Zensar Technologies records • Among 5 global tech companies to be listed $153.3* Mn in Q1FY20 on a major global stock exchange (BSE) for ($578.8 * Mn LTM) 55+ years • 48.5% Digital Revenue, (28.3% YoY Growth) *all

  30. Slide 30: Zensar Business Update

    Zensar Business Update www.zensar.com | © Zensar Technologies 2019 4

  31. Slide 31: Q1 FY20: Brief Snapshot

    Q1 FY20 : Brief Snapshot All growth numbers in US $ unless stated & without RoW www.zensar.com | © Zensar Technologies 2019 5

  32. Slide 32: Q1 FY20: Key Achievements

    Q1 FY20 : Key Achievements Continued New Win Momentum Digital Updates Strengthening of brand ‘Zensar’ Multiple wins in our largest Continued Mega-growth in Named a Top 15 Sourcing client helping sustain Hi-Tech digital revenues – 48.5% Standout by Information growth (solid growth of 6.7% QoQ Service

  33. Slide 33: Trending in Key Financial Updates (US $)

    Trending in Key Financial Updates (US $) All growth numbers in US $ unless stated & without RoW www.zensar.com | © Zensar Technologies 2019 7

  34. Slide 34: Q1 FY20 Financials

    Q1 FY20 Financials Q1 FY20* Growth Particulars Q-o-Q Y-o-Y USD Mn INR Cr USD INR CC USD INR CC Revenue $ 153.3 ₹ 1066.1 3.1% 1.8% 3.6% 16.4% 20.8% 18.8% EBITDA $ 21.8 ₹ 151.5 11.2% 9.8% 16.6% 21.0% EBIT $ 16.3 ₹ 113.6 1.9% 0.6% 2.3% 6.1% PAT $ 11.3 ₹ 78.7 -8.3% -9.5% -9.3% -5.8% INR/Share Q-o-Q Y-o-

  35. Slide 35: Scale winning momentum

    @ Scale winning momentum Multi-million-dollar deal Digital Transformation for a UK based for Sanlam conglomerate $160 Mn+ Digital warehouse for a global sports company Application & development for Hi-tech global company TCV wins in Q1 FY 20 Application Development Guidewire support for healthcare p

  36. Slide 36: Cloud and Infrastructure Services

    Cloud and Infrastructure Services Records 59.8% YoY USD Growth* Revenue up from Fighting multiple large Continued receiving Records continuously $16.2M to $20.3M deals across the analysts mentions increasing win ratio (25.5% QoQ US$ spectrum which total from multiple key with this quarter growth) 40

  37. Slide 37: Q1 FY20: Key Business Highlights

    Q1 FY20: Key Business Highlights ❑ Pipeline quality and Large Deals – Healthy demand scenario with major traction in Cloud and Infrastructure Services deals – 25% of the deals being fought are in the later stages of engagement. – Large Deals ratio - 50% deals being fought with a TCV over $5m across

  38. Slide 38: Q1 FY20: Digital Growth

    Q1 FY20 : Digital Growth 3.1% QoQ • Digital continues to remain strong and grew 6.7% QoQ $153.3M Services Split 16.4% YoY while growing 28.3% YoY. (In USD Mn) • Digital & Application Services grew 13.5% year on year and this 0.6% QoQ $127.0 $26.3 17.1% QoQ was largely due to growth of Digital & App

  39. Slide 39: Q1 FY20: Geographical & Vertical Split

    Q1 FY20 : Geographical & Vertical Split Geographical Split Vertical Split 8.7% 100.0% Revenue 15.0% 18.7% 52.3% 23.9% 5.1% Retail & Consumer Hi-Tech & Fin. Services Emerging 76.3% Services Manufacturing US Europe Africa Percentage of Revenue In USD 39.0% 13.2% 17.9% 6.0% Hi-Tech Mfg Insurance Bankin

  40. Slide 40: Q1 FY20: Top Clients Revenue Concentration

    Q1 FY20 : Top Clients Revenue Concentration Million+ Dollar Clients Q1 FY19 Q4 FY19 Q1 FY20 20 Mn Dollar+ 2 2 2 10 Mn Dollar+ 5 9 9 5 Mn Dollar+ 19 19 20 1 Mn Dollar+ 86 90 91 Revenue Concentration QoQ and YoY Growth Q1 FY19 Q4 FY19 Q1 FY20 QoQ YoY Top 5 Clients 36.0% 37.0% 38.0% 6.1% 22.9% Top 10 C

  41. Slide 41: Q1FY20 Employee Details

    Q1FY20 Employee Details Net Headcount added in the 12,000 Employee Headcount +1376 last year 10166 9748 9456 9138 8790 10,000 Highest Ever Women % in our 8,000 29.8% workforce Zensarians 6,213 6,000 6,188 5,922 Support (including 5,723 5,761 trainees) Employee Attrition 4,000 Marketing Technical - B

  42. Slide 42: Analyst Coverage & Mentions

    Analyst Coverage & Mentions RoD Conclave, Boston 2019 Zensar mentioned in the Gartner Magic Quadrant for Oracle Cloud Application Services, Worldwide Named a Top 15 Sourcing Standout by Information Services Group (ISG) Successfully concluded Zensar’s first-ever Analyst and Advisor meet Zensar named

  43. Slide 43: Stock Price and Shareholding Pattern

    Stock Price and Shareholding Pattern Share Price in Rs. Total Volume 400 16,00,000 350 14,00,000 Share Price in Rs. (NSE) 300 12,00,000 Total Volume 250 10,00,000 200 8,00,000 150 6,00,000 100 4,00,000 50 2,00,000 0 - Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-1

  44. Slide 44: RPG Group Overview

    Analyst Presentation for the quarter ending June 30, 2019 RPG Group Overview www.zensar.com | © Zensar Technologies 2019 18

  45. Slide 45: RPG Group: Key Financials

    RPG Group: Key Financials FY15-19 Gross Total Income (Rs Cr.) FY15-19 CAGR: CAGR: 5.6% EBITDA 9.8% PAT 10.4% EBITDA PAT 23,833 21,766 2,423 19,183 19,271 20,052 2,218 2,014 2,045 1,668 980 1,031 1,099 879 739 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Net Worth ROE ROCE Market Cap 10,000.00 4

  46. Slide 46: Thank You

    Thank You Thanks www.zensar.com | © Zensar Technologies 2019

  47. Slide 47: Resignation letter of Independent Director

    August 6, 2019 The Board of Directors Zensar Technologies Limited Zensar Knowledge Park, Kharadi, Plot # 4, MIDC, Off Nagar Road, Pune - 411014, Maharashtra, India CIN: L72200PN1963PLC012621 Subject: - Resignation as an Independent Director effective August 7, 2019 Dear Sirs, I hereby tender my resi

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