Zensar Technologies Limited · NSE:ZENSARTECH
Zensar Technologies — Q1 FY25 Earnings Presentation
28 slides from Zensar Technologies's earnings presentation, Jul 22, 2024
Slide 1: Exchange cover letter for press release and analyst presentation
Date: July 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 Fax: (022) 2272 2039/2272 3121 Fax: (02
Slide 2: Zensar reports 4.3% sequential QoQ revenue growth in constant currency
Zensar reports 4.3% sequential QoQ revenue growth in constant currency Pune, India, July 22, 2024: Zensar Technologies, a leading experience engineering and technology solutions company, announced its consolidated financial results for its first quarter, ending June 30, 2024, of the fiscal year 2024
Slide 3: Client wins, awards and About Zensar
• Helping Global Insurance client with core data engineering activities and cost reduction by building semantic data model and work on Advanced Analytics • End to End application modernization for one of the largest banking vendor in South Africa Awards and Recognitions in Q1FY25: • Zensar was recog
Slide 4: Safe Harbor (press release)
of governmental fiscal incentives; economic downturn in India and/or around the world; political instability; legal restrictions on raising capital or acquiring companies; and unauthorized use of intellectual property and general economic conditions affecting the industry. In addition to the foregoi
Slide 5: Q1FY25 press release key highlights
Zensar reports 4.3% sequential QoQ revenue growth in constant currency Pune, India, July 22, 2024: Zensar Technologies, a leading experience engineering and technology solutions company, announced its consolidated financial results for its first quarter, ending June 30, 2024, of the fiscal year 2024
Slide 6: Client wins and awards in Q1FY25
• Multi-year Partner in Infrastructure Support, End User Computing and Dispatch for a Global Mobility Solution Provider • Helping Global Insurance client with core data engineering activities and cost reduction by building semantic data model and work on Advanced Analytics • End to End application m
Slide 7: Q1FY25 Revenue and Profitability snapshot
Q1FY25 Revenue and Profitability snapshot: Q1FY25 Growth Particulars Q-o-Q Y-o-Y USD Mn INR Mn USD INR CC USD INR CC Revenue 154.4 12,881 4.2% 4.7% 4.3% 3.4% 5.0% 3.3% EBITDA 23.5 1,961 -3.9% -3.4% -16.0% -14.8% EBIT 20.6 1,714 -4.9% -4.4% -10.0% -8.7% PAT 18.9 1,579 -9.4% -8.9% -0.4% 1.1% Performan
Slide 8: Income Statement (USD Mn)
Income Statement (USD Mn) Income Statement (USD Mn) Q1 FY 24 FY 24 Q4 FY 24 Q1 FY 25 Operating revenue 149.3 592.3 148.1 154.4 Sequential Growth 1.3% 2.4% 4.2% Year-Over-Year Growth -4.2% -2.0% 0.5% 3.4% Cost of revenue 99.1 404.0 102.7 107.5 Gross profit 50.2 188.3 45.4 46.9 Gross profit % of reven
Slide 9: Income Statement (INR Mn)
Income Statement (INR Mn) Income Statement (INR Mn) Q1 FY 24 FY 24 Q4 FY 24 Q1 FY 25 Operating revenue 12,272 49,019 12,297 12,881 Sequential Growth 1.2% 2.1% 4.7% Year-Over-Year Growth 2.0% 1.1% 1.4% 5.0% Cost of revenue 8,146 33,433 8,529 8,968 12,881 Gross profit 4,126 15,586 3,768 3,913 Gross pr
Slide 10: Other Metrics
Other Metrics Other Metrics Q1 FY 24 FY 24 Q4 FY 24 Q1 FY 25 Revenue By Service Offering (as % of Revenue) Digital Application Services 81.7% 81.6% 81.6% 81.7% Application Services + Enterprise Application (SaaS) 47.9% 47.3% 47.8% 46.8% Advanced Engineering Services 15.4% 16.4% 15.9% 16.7% Experienc
Slide 11: Other Metrics: top clients, headcount, utilization
Other Metrics Q1 FY 24 FY 24 Q4 FY 24 Q1 FY 25 Revenue from top clients Revenue- top 5 clients 34.0% 30.7% 28.3% 28.3% Revenue- top 10 clients 45.2% 41.8% 40.8% 42.1% Revenue- top 20 clients 61.7% 58.3% 57.2% 58.7% Number of active clients 147 148 148 148 Onsite: Offshore (as % of Revenue) Revenue m
Slide 12: About Zensar and RPG Enterprises
About Zensar (www.zensar.com) 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 tr
Slide 13: Safe Harbor (continued)
have made strategic investments, demand for the Company’s offerings, and the onshore-offshore-nearshore delivery model. 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. Si
Slide 14: Analyst Presentation, Quarter ending June 30, 2024
Analyst Presentation Quarter ending June 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: Q1FY25 snapshot
Q1FY25 snapshot Total Revenue Cash EBITDA% $280.9M 15.2% $154.4M $19.2M 130 bps 4.3% QoQ CC Headcount Wins 10,396 47 $154.0M Utilization Attrition 83.9% 10.6% 20 bps 30 bps www.zensar.com | © Zensar Technologies 2024 | Page 3
Slide 17: Vertical and Geography performance
Vertical and Geography performance Vertical highlights Geography highlights TMT BFSI MCS HLS USA UK/EU South Africa 1.2% 6.8% 2.7% 6.9% 6.6% - 0.1% - 0.9% QoQ cc QoQ cc QoQ cc QoQ cc QoQ cc QoQ cc QoQ cc -13.8% 13.0% 10.0% 2.7% 2.4% 6.0% 4.5% YoY cc YoY cc YoY cc YoY cc YoY cc YoY cc YoY cc 24.7% 39
Slide 18: Revenue and margin walk
Revenue and margin walk Revenue walk (in $M) Services revenue 1.0M 0.2M 3.7M 1.0M 154.4M 148.1M 0.1M 0.5M Exchange TMT HLS Passthrough BFSI MCS Q4FY24 Impact Q1FY25 EBITDA walk (in % of revenue) 16.5% 15.2% 0.2% 0.4% 0.7% -1.5% -1.1% Exchange impact Volume and R&D tax credit Increased Operational SG
Slide 19: Client and Revenue mix
Client and Revenue mix 31 31 29 Q4FY24 Q1FY25 14 14 14 Q1FY24 Q1FY24 Q4FY24 Q1FY25 Client mix 4 4 4 Q1FY24 Q4FY24 Q1FY25 $20M+ $10M+ $5M+ Q1FY24 34.0% Q1FY24 45.2% Q1FY24 61.7% Revenue mix Q4FY24 28.3% Q4FY24 40.8% Q4FY24 57.2% (% of total revenue) Q1FY25 28.3% Q1FY25 42.1% Q1FY25 58.7% Top 5 Client
Slide 20: Win momentum continues: Notable projects
Win momentum continues: Notable projects End to End application Partnered with a leading US based modernization leading smooth manufacturer and distributer of customer onboarding experience analytical instruments to implement for one of the largest banking centralized and standardized Service vendo
Slide 21: Case studies: Next-generation services bring business value
Case studies: Next-generation services bring business value Collaborating with the world's largest provider of Global marketing support for Partner ecosystem Jira migration for a Tech solution provider for arbitration for a cutting-edge solution to generate to deliver marketing campaigns around the
Slide 22: Leadership structure
Leadership structure Manish Tandon CEO and MD Vivek Ranjan Vijayasimha Alilughatta Harish Lala Pratik Maroo CHRO Chief Operating Officer Exec VP & Head – Hi-tech Head- Healthcare and Life Sciences Engineering and Africa Nachiketa Mitra Chaitanya Rajebahadur Anup Rege Exec VP & Head – Banking and Exe
Slide 23: ESG initiatives
ESG initiatives Environment Social Governance Carbon emissions: Net-zero GHG Happiness: Sustain Happiness Index Governance & compliance: emissions by FY40 (Scope 1 and 2) Score at 82 or more • 100% compliance for code of conduct Energy consumption: 50% reduction in Diversity and inclusion: Create a
Slide 24: Zensar's stock price and shareholding pattern
Zensar’s stock price and shareholding pattern Share Price Volume 25 750 20 675 600 15 INR 525 10 450 5 375 0 Shareholding Pattern Equity Share Information (as of June 28, 2024) ▪ Share Price (28th June 2024): INR 747/ share ▪ Market Cap (28th June 2024):INR 16,882 crs Promoter Group, 49.2% ▪ Financi
Slide 25: RPG Group Update
RPG Group Update
Slide 26: RPG Group key financials
RPG Group key financials 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 4,061 1,111 1,379 966 863 1,815 FY20 FY21 FY22 FY23 FY24 www.zensar.com | © Zensar Technologies 2024 | Page 13
Slide 27: RPG Group key financials
RPG Group key financials 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% 10.0% 2500 13.6% 13.3% 10.9% 1000 8.6% 7.8% 5.0% -500 0.0% FY20 FY21 FY22 FY
Slide 28: Thank You
zensar Thank You An @RPG Company