Zensar Technologies Limited · NSE:ZENSARTECH

Zensar Technologies — Q3 FY2021 Earnings Presentation

46 slides from Zensar Technologies's earnings presentation, Jan 21, 2021

  1. Slide 1: Outcome of the Board Meeting held on January 21, 2021

    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: January 21, 2021 BSE Limited The National Stock Exchange of India Ltd. Cor

  2. Slide 2: Press Release, Analyst Presentation, Code and Postal Ballot

    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. Press Release & Analyst Presentation Press Release and Analyst Presentation o

  3. Slide 3: Independent Auditor's Review Report on Standalone Results

    Deloitte Chartered Accountants 706, 'B' Wing, 7th Floor Haskins & Sells LLP ICC Trade Tower Senapati Bapat Road Pune-411 016 Maharashtra, India ·re 1: +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

  4. Slide 4: Auditor's Review Report (signature page)

    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) SAIRABEE SAIRABEE Digitally signed by NAINAR NAINAR RAWTHER Date: 2021.01

  5. Slide 5: 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 Nine months ended December 31, 2020 (INR Lakhs) Quarter Ended Nine Months End

  6. Slide 6: Independent Auditor's Review Report on Consolidated Results

    Deloitte Chartered Accountants 706, 'B' Wing, 7th 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 CONSOLIDATED FINANCIAL RESULTS TO THE BOARD OF DIRECTOR

  7. Slide 7: Auditor's Review Report (signature page)

    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) SAIRABEE SAIRABEE Digitally signed by NAIN

  8. Slide 8: Annexure to Auditor's Review Report: List of Entities

    Deloitte Haskins & Sells LLP Annexure to Auditor's Review Report List of Entities: 1. Zensar Technologies Inc. 2. Zensar Technologies (UK) Limited 3. PSI Holding Group Inc. (Ceased to be subsidiary w.e.f. December 2, 2020) 4. Zensar Technologies IM Inc. (Ceased to be subsidiary w.e.f. December 2, 20

  9. Slide 9: 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 Nine months ended December 31, 2020 (INR Lakhs) Quarter Ended Nine Months E

  10. Slide 10: Statement of Segment Assets & Liabilities

    31-Dec-2020 30-Sep-2020 31-Dec-2019 31-Mar-2020 Statement of Segment Assets & Liabilities Unaudited Unaudited Unaudited Audited 1 Segment Assets Trade Receivables Digital and Application Services 47,767 48,000 65,935 55,212 Digital Foundation Services 9,969 11,039 14,061 11,352 Total Trade Receivabl

  11. Slide 11: Zensar reports PAT at 10.9% in Q3FY21

    Zensar reports PAT at 10.9% in Q3FY21 An increase of 13.3% QoQ in USD terms Pune, India, January 21, 2021: Zensar Technologies, a leading digital solutions and technology services company that specialises in partnering with global organisations on their Digital transformation journey, announced its

  12. Slide 12: Corporate Excellence Snapshot in Q3FY21

    • Oracle implementation for a US based manufacturer of lighting products • Digital experience solutions and services for a leading retailer based in South Africa Corporate Excellence Snapshot in Q3FY21: • Everest Group Aware (Intelligent) IT Infrastructure Services Automation PEAK Matrix® Assessment

  13. Slide 13: Q3 FY21 Revenue and Profitability snapshot

    Q3 FY 21 Revenue and Profitability snapshot: Q3 FY21 Growth Particulars Q-o-Q Y-o-Y USD Mn INR Mn USD INR CC USD INR CC Revenue $ 122.8 ₹ 9065 (2.4%) (3.2%) (3.7%) (10.9%) (7.7%) (10.6%) EBITDA $ 25.2 ₹ 1863 3.3% 2.5% 167.3% 177.1% EBIT $ 19.5 ₹ 1442 4.5% 3.7% 422.1% 441.1% PAT $ 13.4 ₹ 987 13.3% 12

  14. Slide 14: 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

  15. Slide 15: 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

  16. Slide 16: Zensar reports PAT at 10.9% in Q3FY21

    Zensar reports PAT at 10.9% in Q3FY21 An increase of 13.3% QoQ in USD terms Pune, India, January 21, 2021: Zensar Technologies, a leading digital solutions and technology services company that specialises in partnering with global organisations on their Digital transformation journey, announced its

  17. Slide 17: Corporate Excellence Snapshot in Q3FY21

    • Oracle implementation for a US based manufacturer of lighting products • Digital experience solutions and services for a leading retailer based in South Africa Corporate Excellence Snapshot in Q3FY21: • Everest Group Aware (Intelligent) IT Infrastructure Services Automation PEAK Matrix® Assessment

  18. Slide 18: Performance Highlights

    Q3 FY 21 Revenue and Profitability snapshot: Q3 FY21 Growth Particulars Q-o-Q Y-o-Y USD Mn INR Mn USD INR CC USD INR CC Revenue $ 122.8 ₹ 9065 (2.4%) (3.2%) (3.7%) (10.9%) (7.7%) (10.6%) EBITDA $ 25.2 ₹ 1863 3.3% 2.5% 167.3% 177.1% EBIT $ 19.5 ₹ 1442 4.5% 3.7% 422.1% 441.1% PAT $ 13.4 ₹ 987 13.3% 12

  19. Slide 19: Income Statement (USD Mn)

    Income Statement (USD Mn) Income Statement (USD Mn) Q3 FY 20 FY 20 Q2 FY 21 Q3 FY 21 Operating revenue 137.9 566.0 125.8 122.8 Sequential Growth -5.5% 0.5% -2.4% Year-Over-Year Growth 1.9% 6.8% -13.8% -10.9% Cost of revenue 104.9 405.9 82.1 80.3 Gross profit 33.0 160.1 43.8 42.5 Gross profit % of re

  20. Slide 20: Income Statement (INR Mn)

    Income Statement (INR Mn) Income Statement (INR Mn) Q3 FY 20 FY 20 Q2 FY 21 Q3 FY 21 Operating revenue 9,819 40,102 9,364 9,065 Sequential Growth -4.5% -1.3% -3.2% Year-Over-Year Growth 0.7% 8.1% -8.9% -7.7% Cost of revenue 7,469 28,756 6,106 5,925 Gross profit 2,350 11,347 3,258 3,140 Gross profit

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

    Other Metrics Q3 FY 20 FY 20 Q2 FY 21 Q3 FY 21 Revenue by Service Offering (as % of Revenue) Digital & Application Services (DAS) 87.3% 87.5% 85.1% 84.9% Digital Services 49.4% 47.6% 54.3% 55.0% Core Application Services 37.9% 39.9% 30.8% 29.9% Digital Foundation Services (DFS) 12.7% 12.5% 14.9% 15.

  22. Slide 22: Other Metrics: Client and Employee Data

    Other Metrics Q3 FY 20 FY 20 Q2 FY 21 Q3 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 + 87 82 81 83 5 Million dollar + 24 24 23 24 10 Million dollar + 10 10 8 8 20 Million dollar + 2 2 2 2 Revenue from top clients Revenue- top 5 c

  23. Slide 23: Other Metrics: Exchange Rates, Receivables, Cash

    Other Metrics Q3 FY 20 FY 20 Q2 FY 21 Q3 FY 21 Exchange Rates Rupee Dollar Rate Period Closing Rate 71.4 75.7 73.8 73.1 Period Average Rate 71.2 70.9 74.4 73.8 Accounts receivables (in days) Billed 57 51 51 48 Unbilled 36 35 24 25 Total 93 86 75 73 Cash and Cash Equivalents (USD mn)** Balances with

  24. Slide 24: 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

  25. Slide 25: 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

  26. Slide 26: Analyst Presentation – Q3FY21

    Analyst Presentation – Q3FY21 Quarter Ending December 31, 2020 www.zensar.com | © Zensar Technologies 2021

  27. Slide 27: Safe Harbor

    Safe Harbor Q3 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 – writt

  28. Slide 28: Financial Update

    Financial Update www.zensar.com | © Zensar Technologies 2021

  29. Slide 29: Q3 FY21 Snapshot

    Q3 FY21 Snapshot Q3 FY21 Part of USD 4 B RPG Group, portfolio company of the USD 40 B APAX Group USD 122.8M 34.6% 20.6% 10.9% Revenue, down 2.4% QoQ Gross Margin, down 20 bps QoQ EBITDA, up 120 bps QoQ PAT, up 150 bps QoQ Zensar is now a zero debt company with consistent growth in Operating Margin a

  30. Slide 30: Revenue & EBITDA Walk

    Revenue & EBITDA Walk Q3 FY21 125.8 122.8 0.9% -4.6% 1.2% Revenue Walk (In USD M terms) Q2 FY21 Rev Mix & Volume Hi-Tech Impact Exchange Impact Q3 FY21 1.2 M -5.8 M 1.6 M 0.6% -1.0% 0.2% -0.1% 1.4% 20.6% 19.4% EBITDA Walk (In % of Rev terms) Gross Margin Q2 FY21 Exchange Volume & Direct Cost Exchang

  31. Slide 31: Client Metrics

    Client Metrics Q3 FY21 Million Dollar Clients (LTM) Client Concentration (% of revenue) 24 24 24 23 24 61.9% Q3 FY 21 47.8% 37.8% 65.8% Q2 FY 21 51.0% 39.8% 10 10 9 8 8 68.1% Q1 FY 21 53.7% 43.1% 2 2 2 2 2 62.9% Q4 FY 20 49.0% 39.6% Q3 FY 20 Q4 FY 20 Q1 FY 21 Q2 FY 21 Q3 FY 21 66.1% 5 M+ Clients 10

  32. Slide 32: Revenue Split

    Revenue Split Q3 FY21 Region Split & Growth ( $ USD) Vertical Split & Growth ( $ USD) YoY 3.9% Vertical 9.6% 12.3% Geography QoQ YoY Vertical QoQ YoY 17.4% 39.6% Banking 5.5% 0.5% 19.3% US (6.4%) (14.4%) 70.3% Consumer Services 7.7% (1.4%) Europe 6.3% (4.6%) 15.3% Hi-tech (10.2%) (14.1%) 12.3% Afric

  33. Slide 33: Business Update

    Business Update www.zensar.com | © Zensar Technologies 2021

  34. Slide 34: Key Wins for the Quarter

    Keys Wins for the Quarter Q3 FY21 Strong quarter for wins across verticals and geographies $200 Mn+ $150 Application mgt services for a global Hi-Tech company Claims support & bank recon. for an insurance comp. Mn+ TCV wins in Q3 FY21 US QA automation for risk mgt products company Data engg. for man

  35. Slide 35: Pipeline Highlights

    Pipeline Highlights Q3 FY21 1.7B 1.5B 1.5B 1 Continued momentum to build a strong & healthy pipeline Highest ever $150 pipeline of 1.0B 1.0B 2 Strong momentum across the DFS and BFSI verticals Mn+Bn+ $1.7 3 50% pipeline from large deals (>10M USD TCV) TCV in wins in Q3 FY21 Q3 FY20 Q4FY20 Q1FY21 Q2F

  36. Slide 36: Digital Foundation Services

    Digital Foundation Services Q3 FY21 …result in solid wins with a ..and wins industry Strong Business Aspirations… robust pipeline… wide recognition! Differentiate on superior 1 A large transformative deal in the experience “Innovator” for 3rd Modern Workplace space with a consecutive year in leading

  37. Slide 37: Domain-Led BFSI Strategy

    Domain-Led BFSI Strategy Q3 FY21 MarketTrends Market Trends In In BFSI BFSI Unlocking growth in BFSI Insurance Personalized products, advanced analytics and Expanding Zensar's global Deep client Fintech partnerships footprint engagement Banking Mainstreaming block-chain, omni-channel digital experie

  38. Slide 38: Work from Anywhere

    Work from Anywhere Q3 FY21 Enabling Culture Alignment in a virtual enterprise Moving into Work From Anywhere model by building a Virtual Workforce ecosystem & end to end hiring process Over 550 Associates onboarded in three batches covering 15+ cities across India (Tier 2-3-4 cities) 1000 hours of t

  39. Slide 39: Awards & Recognitions

    Awards & Recognitions Q3 FY21 Won three awards at the global SDC awards for Recognized as an Innovative Company at Zensar’s COVID-19 response outreach Augmented/Virtual Reality Innovation of the the CII Centre for Digital Transformation DX campaigns awarded the Global Marketing Year, Open Source/Dev

  40. Slide 40: Analyst Coverage

    Analyst Coverage Q3 FY21 Named as leader in Next-Gen Recognized as major contender in Recognized as challenger in Private/Hybrid Cloud - Data Center Services Insurance Business Model Innovation Manufacturing Digital Services 2020- & Solutions 2020 ISG Provider Lens Enablement Services PEAK Matrix® 2

  41. Slide 41: Six tenets of Zensar's COVID-19 Response

    Six tenets of Zensar’s COVID-19 Response Q3 FY21 Zensar became a zero-debt company Client first initiatives paving the Cash in Q3 FY21. Optimum Net Working way for exponential growth. Capital movement Management New propositions unveiled across industries Business Associate Wellness Use of in-house

  42. Slide 42: Leadership Change at Zensar

    Leadership Change at Zensar Q3 FY21 Ajay has more than 30 years of experience in the industry across US, Europe and India. Ajay was earlier the Chief Executive of L&T-NxT. Prior to that Ajay spent 17 years at Cognizant. In his last assignment in Cognizant, he led the Retail/Consumer Goods/Travel/Hos

  43. Slide 43: RPG Group Overview

    RPG Group Overview www.zensar.com | © Zensar Technologies 2021

  44. Slide 44: RPG Group Key Financials

    RPG Group Key Financials Q3 FY21 FY16-20 CAGR: FY16-20 Gross Total Income (Rs Cr.) EBITDA 6.5% EBITDA PAT CAGR: 7.6% PAT 6.0% 2,594 2,423 24,682 2,218 23,833 2,014 2,045 21,766 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 9,0

  45. Slide 45: Share Price & Share Holding Pattern

    Share Price & Share Holding Pattern Q3 FY21 Share Price in Rs. Total Volume 300 3,000,000 250 2,500,000 200 2,000,000 150 1,500,000 100 1,000,000 50 500,000 - - Jan-20 Jan-20 Mar-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Equity Share Information: Shareholding Pattern (

  46. Slide 46: Thank You

    ZenSar Thank You

Zensar Technologies — Q3 FY2021 Earnings Presentation on 6ix