Zensar Technologies Limited · NSE:ZENSARTECH

Zensar Technologies — Q2 FY2021 Earnings Presentation

49 slides from Zensar Technologies's earnings presentation, Oct 29, 2020

  1. Slide 1: Outcome of the Board Meeting held on October 29, 2020

    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: October 29, 2020 BSE Limited The National Stock Exchange of India Ltd. Cor

  2. Slide 2: Scheme of Amalgamation approvals and disclosure

    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 The proposed amalgamation/merger shall be implemented through a Scheme of Amalga

  3. Slide 3: Details of Transaction: Merger of Cynosure Interface Services

    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 Details of Transaction Amalgamation/Merger of Cynosure Interface Services Privat

  4. Slide 4: Consideration and shareholding pattern details

    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 S. No. Particulars Remarks 5. In case of cash consideration - Not applicable as

  5. Slide 5: Independent Auditor's Review Report on Standalone Results

    INDEPENDENT AUDITOR’S REVIEW REPORT ON REVIEW OF INTERIM STANDALONE FINANCIAL RESULTS TO THE BOARD OF DIRECTORS OF ZENSAR TECHNOLOGIES LIMITED 1. We have reviewed the accompanying Statement of Standalone Unaudited Financial Results of ZENSAR TECHNOLOGIES LIMITED (“the Company”), for the quarter and

  6. Slide 6: Auditor's Review Report signature page

    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) Place: Mumbai Saira Nainar Date: October 29, 2020 Partner (Membership No. 040081) UDIN: 20

  7. Slide 7: Statement of Unaudited Standalone Results

    Zensar Technologies Limited Registered Office : Zensar Knowledge Park, Kharadi, Plot # 4 , MIDC, Off Nagar Road, Pune - 411014, India CIN: L72200PN1963PLC012621 Statement of Unaudited Standalone Results for the Quarter and Half Year ended September 30, 2020 (INR Lakhs) Quarter Ended Half Year Ended

  8. Slide 8: Statement of Assets & Liabilities (Standalone)

    Statement of Assets & Liabilities (INR Lakhs) As at September As at March 31, Particulars 30, 2020 2020 Unaudited Audited Assets Non-Current Assets (a) Property, Plant and Equipment 9,993 10,487 (b) Right of use assets 21,784 23,122 (c) Capital work-in-progress 3 5 (d) Goodwill 8,402 8,402 (e) Other

  9. Slide 9: Standalone Statement of Cash Flows

    Annexure I Zensar Technologies Limited Standalone Statement of Cash Flows (INR Lakhs) Half Year Ended Year Ended Particulars 30-Sep-2020 30-Sep-2019 31-Mar-2020 Unaudited Unaudited Audited Cash flow from operating activities Profit before taxation 17,276 14,332 30,410 Adjustments for: Depreciation,

  10. Slide 10: Independent Auditor's Review Report on Consolidated Results

    INDEPENDENT AUDITOR’S REVIEW REPORT ON REVIEW OF INTERIM CONSOLIDATED FINANCIAL RESULTS TO THE BOARD OF DIRECTORS OF ZENSAR TECHNOLOGIES LIMITED 1. We have reviewed the accompanying Statement of Consolidated Unaudited Financial Results of ZENSAR TECHNOLOGIES LIMITED (“the Parent”) and its subsidiari

  11. Slide 11: Auditor's Review Report signature page

    other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, including the manner in which it is to be disclosed, or that it c

  12. Slide 12: Annexure to Auditor's Review Report: List of Entities

    Annexure to Auditor’s Review Report List of Entities: 1. Zensar Technologies Inc. 2. Zensar Technologies (UK) Limited 3. PSI Holding Group Inc. 4. Zensar Technologies IM Inc. 5. Zensar Technologies IM B.V. 6. Zensar (Africa) Holdings Pty Limited 7. Zensar (South Africa) Pty Limited 8. Professional A

  13. Slide 13: Statement of Unaudited Consolidated Results

    Zensar Technologies Limited Registered Office : Zensar Knowledge Park, Kharadi, Plot # 4 , MIDC, Off Nagar Road, Pune - 411014, India CIN: L72200PN1963PLC012621 Statement of Unaudited Consolidated Results for the Quarter and Half Year ended September 30, 2020 (INR Lakhs) Quarter Ended Half Year Ende

  14. Slide 14: Statement of Assets & Liabilities (Consolidated)

    Statement of Assets & Liabilities (INR Lakhs) As at September As at March Particulars 30, 2020 31, 2020 Unaudited Audited Assets Non-Current Assets (a) Property, Plant and Equipment 12,203 12,940 (b) Right of use assets 30,073 32,649 (c) Capital work-in-progress 4 180 (d) Goodwill 57,601 64,658 (e)

  15. Slide 15: Statement of Segment Assets & Liabilities

    30-Sep-2020 30-Jun-2020 30-Sep-2019 31-Mar-2020 Statement of Segment Assets & Liabilities ## Unaudited Unaudited Unaudited Audited 1 Segment Assets Trade Receivables Digital and Application Services 41,761 48,800 64,457 55,212 Digital Foundation Services 17,278 14,753 10,546 11,352 Total Trade Recei

  16. Slide 16: Consolidated Statement of Cash Flows

    Annexure I Zensar Technologies Limited Consolidated Statement of Cash Flows (INR Lakhs) Half Year Ended Year Ended Particulars 30-Sep-2020 30-Sep-2019 31-Mar-2020 Unaudited Unaudited Audited Cash flow from operating activities Profit before taxation 13,658 22,151 37,579 Exceptional Item (8,873) - -

  17. Slide 17: Zensar reports strong margins, Revenue grew by 0.6% QoQ

    Zensar reports strong margins, Revenue grew by 0.6% QoQ Pune, India, October 29, 2020: Zensar, a digital solutions and technology services company that specialises in partnering with global organisations on their digital transformation journey, announced its consolidated financial results for Quarte

  18. Slide 18: Client wins and Corporate Excellence Q2FY21

    • Analytics and data science services for a leading bank from South Africa • Policy implementation services for a niche insurance company in the US • Cloud and infrastructure services for a US based large eye care company Corporate Excellence Q2FY21: • Zensar granted US patent for its innovative too

  19. Slide 19: 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

  20. Slide 20: Forward-looking statements

    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 based, are

  21. Slide 21: Zensar reports strong margins, Revenue grew by 0.6% QoQ

    Zensar reports strong margins, Revenue grew by 0.6% QoQ Pune, India, October 29, 2020: Zensar, a digital solutions and technology services company that specialises in partnering with global organisations on their digital transformation journey, announced its consolidated financial results for Quarte

  22. Slide 22: Client wins and Corporate Excellence Q2FY21

    • Analytics and data science services for a leading bank from South Africa • Policy implementation services for a niche insurance company in the US • Cloud and infrastructure services for a US based large eye care company Corporate Excellence Q2FY21: • Zensar granted US patent for its innovative too

  23. Slide 23: Performance Highlights

    Performance Highlights Revenue (USD M) Gross Margin (% Revenue) 152.3 143.3 140.6 34.1% 130.8 131.6 29.1% 28.9% 28.8% 23.6% Q2 FY 20 Q3 FY 20 Q4 FY 20 Q1 FY 21 Q2 FY 21 Q2 FY 20 Q3 FY 20 Q4 FY 20 Q1 FY 21 Q2 FY 21 EBITDA (% Revenue) PAT (% Revenue)* 9.1% 18.8% 7.4% 7.4% 14.4% 6.8% 14.0% 13.9% 3.9% 6

  24. Slide 24: Income Statement (USD Mn)

    Income Statement (USD Mn) Income Statement (USD Mn) Q2 FY 20 FY 20 Q1 FY 21 Q2 FY 21 Operating revenue 152.3 589.5 130.8 131.6 Sequential Growth -0.7% -7.0% 0.6% Year-Over-Year Growth 12.8% 5.8% -14.7% -13.6% Cost of revenue 107.9 425.6 93.1 86.7 Gross profit 44.3 163.9 37.7 44.9 Gross profit % of r

  25. Slide 25: Income Statement (INR Mn)

    Income Statement (INR Mn) Income Statement (INR Mn) Q2 FY 20 FY 20 Q1 FY 21 Q2 FY 21 Operating revenue 10,723 41,768 9,912 9,794 Sequential Growth 0.6% -2.6% -1.2% Year-Over-Year Growth 13.3% 7.1% -7.0% -8.7% Cost of revenue 7,600 30,159 7,058 6,454 Gross profit 3,123 11,608 2,855 3,340 Gross profit

  26. Slide 26: Other Metrics: Revenue by service, industry, geography

    Other Metrics Q2 FY 20 FY 20 Q1 FY 21 Q2 FY 21 Revenue by Service Offering (as % of Revenue) Digital & Application Services (DAS) 85.6% 84.0% 81.2% 81.4% Digital Services 44.2% 45.7% 50.5% 51.9% Core Application Services 41.3% 38.3% 30.7% 29.5% Digital Foundation Services (DFS) 14.4% 16.0% 18.8% 18.

  27. Slide 27: Other Metrics: Client and employee data

    Other Metrics Q2 FY 20 FY 20 Q1 FY 21 Q2 FY 21 Q3 FY 19 FY 18 Q2 FY 19 Q3 FY 19 Client Data Number of million dollar Clients (LTM Revenue) 1 Million Dollar + 93 87 85 86 5 Million Dollar + 23 24 24 24 10 Million Dollar + 9 10 9 8 20 Million Dollar + 2 2 2 2 Revenue from top clients Revenue- top 5 cl

  28. Slide 28: Other Metrics: Exchange rates, receivables, cash

    Other Metrics Q2 FY 20 FY 20 Q1 FY 21 Q2 FY 21 Exchange Rates Rupee Dollar Rate Period Closing Rate 70.9 75.7 75.5 73.8 Period Average Rate 70.4 70.9 75.8 74.4 Accounts receivables (in days) Billed 57 54 49 55 Unbilled 45 33 26 22 Total 102 87 75 76 Summary of Cash and Cash Equivalents* Cash and Cas

  29. Slide 29: 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

  30. Slide 30: Forward-looking statements

    companies in which we have made strategic investments, demand for 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 an

  31. Slide 31: Analyst Presentation – Q2FY21

    Analyst Presentation – Q2FY21 Quarter Ending September 30, 2020 www.zensar.com | © Zensar Technologies 2020

  32. Slide 32: Safe Harbor

    Safe Harbor Q2 FY21 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 – wri

  33. Slide 33: Overview

    Overview Q2 FY21 Q2 FY21 Revenue at USD 131.6 M (QoQ 0.6% in $ terms) Part of USD 4 B Portfolio Company of 61.0% Digital Revenue RPG Group the USD 50 B APAX Group (Q2 FY21) 3 www.zensar.com | © Zensar Technologies 2020

  34. Slide 34: Q2 FY21 Snapshot

    Q2 FY21 Snapshot Q2 FY21 USD 131.6M 34.1% 18.8% 9.1% Revenue, up by 0.6% QoQ GM, up by 530 bps QoQ EBITDA, Up 440bps QoQ PAT*, Up by 170bps QoQ Core revenue at USD 125.8M Core business EBITDA at 19.4% USD Net Cash Headcount USD 8614 1.5+B 175M+ 117.2M USD Attrition 11.7% Pipeline Q2FY21 Wins Gross c

  35. Slide 35: Financial Update

    Financial Update www.zensar.com | © Zensar Technologies 2020

  36. Slide 36: Revenue & EBITDA Walk

    Revenue & EBITDA Walk Q2 FY21 131.6 130.8 1.6% -2.2% Revenue Walk 1.2% (In USD M terms) Q1FY21 Rev Mix & Hi-Tech Impact Exchange Impact Q2FY21 Volume -2.9 +1.6 M +2.1M -0.2% 3.7% -0.7% 18.8% 1.3% EBITDA Walk 14.4% 0.3 % (In % of Rev terms) Gross Margin Q1FY21 Exchange Volume & Direct Cost Exchange S

  37. Slide 37: Client Metrics

    Client Metrics Q2 FY21 MILLION DOLLAR CLIENTS (LTM) CLIENT CONCENTRATION 62.9% 24 24 24 24 Q2 FY 21 48.7% 38.0% 23 65.2% Q1 FY 21 51.4% 41.2% 10 10 9 60.4% 9 8 Q4 FY 20 47.0% 38.0% 63.6% 2 2 2 2 2 Q3 FY 20 49.3% 39.6% Q2 FY 20 Q3 FY 20 Q4 FY 20 Q1 FY 21 Q2 FY 21 62.6% Q2 FY 20 48.0% 5M+ Clients 10M+

  38. Slide 38: Revenue Split

    Revenue Split Q2 FY21 Region Split & Growth ( $ USD) 8.9% 2.3% Vertical Split & Growth ( $ USD) 19.5% 43.9% Geography QoQ YoY Vertical QoQ YoY 10.3% 13.5% 15.3% 12.0% US Consumer Serv. 12.8% (26.9%) (1.5%) (13.1%) Hi-Tech (4.5%) (5.4%) 74.4% Europe 8.1% (13.9%) Manufacturing (2.9%) (19.9%) Africa 6.

  39. Slide 39: TPM Business divestment

    TPM Business divestment Q2 FY21 Zensar has signed a definitive agreement with Service Express, a leading Third-Party Maintenance service provider, to divest its TPM business, by way of a 100% share sale of Zensar’s shareholding in PSI Holding Group, a Zensar subsidiary USD 10M at Closing date subjec

  40. Slide 40: Business Update

    Business Update www.zensar.com | © Zensar Technologies 2020

  41. Slide 41: Wins & Pipeline Highlights

    Wins & Pipeline Highlights Q2 FY21 Proactive proposals land robust wins in Top existing clients Large diversified American US-based global medical conglomerate device company $150 $175 Mn+ Leading bank from South Africa Large US based hi-tech company Mn+ American technical UK based insurance TCV win

  42. Slide 42: Domain-Led BFSI Strategy

    Domain-Led BFSI Strategy Q2 FY21 Market Trends that we see… Four key levers that will help us accelerate our growth Traction in Digital banking, improve CX, well in Banking & Financial Services are… Banking Banking capitalized, regulatory compliance Areas include Industry consolidation, Robo- BFSI L

  43. Slide 43: Featured by HBS and LBS

    Featured by HBS and LBS Delivering Digital-Led Business Impact to our Clients Zensar’s Accelerated Digital Transformation Zensar - A Transformative Case Journey - A Case Study at Study at Harvard Business School London Business School © Zensar Technologies | www.zensar.com | 2020 13

  44. Slide 44: Six tenets of Zensar's COVID-19 Response

    Six tenets of Zensar’s COVID-19 Response Q2 FY21 Focus on cash collections & Launch of Client first initiatives Cash conservation. Credit lines tracked to drive high speed and closely. Improved our cash position Management effective client mining. Our with net cash as $117 Mn from $101 proactive pro

  45. Slide 45: Analyst Coverage & Recognition

    Analyst Coverage & Recognition Q2 FY21 Zensar mentioned as "Major Zensar recognized as aspirants in Contender "in Everest Digital Salesforce Marketing and Interactive Experience (IX) Services Commerce Cloud Services PEAK PEAK Matrix® Assessment 2020 Matrix® Assessment 2020 Zensar mentioned in Gartne

  46. Slide 46: RPG Group Overview

    RPG Group Overview www.zensar.com | © Zensar Technologies 2020

  47. Slide 47: RPG Group: Key Financials

    RPG Group: Key Financials Q2 FY21 FY16-20 FY16-20 CAGR: CAGR: 7.6% Gross Total Income (Rs Cr.) EBITDA 6.5% PAT 6.0% EBITDA PAT 2,594 2,423 23,833 24,682 2,218 21,766 2,014 2,045 19,271 20,052 1,031 1,099 1,111 879 980 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Net Worth ROE ROCE Market Cap 9,

  48. Slide 48: RPG Group: Key Financials – Equity Share Information

    RPG Group: Key Financials Q2 FY21 Share Price in Rs. Total Volume 250 3,000,000 200 2,500,000 2,000,000 150 1,500,000 100 1,000,000 50 500,000 - - Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Equity Share Information: Shareholding Pattern (as on 30th Sep

  49. Slide 49: Thank You

    ZenSar Thank You

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