Zensar Technologies Limited · NSE:ZENSARTECH

Zensar Technologies — Q1 FY2021 Earnings Presentation

41 slides from Zensar Technologies's earnings presentation, Jul 23, 2020

  1. Slide 1: Outcome of the Board Meeting held on July 23, 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: July 23, 2020 BSE Limited The National Stock Exchange of India Ltd. Corpor

  2. Slide 2: 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 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

  3. Slide 3: Independent Auditor's Review Report (continued)

    Deloitte Haskins & Sells LLP 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 contains a

  4. Slide 4: Statement of Unaudited Standalone Results for Quarter ended June 30, 2020

    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 June 30, 2020 (INR Lakhs) Quarter Ended Year Ended Particulars 30-Jun-2020 31-Mar-2020 30-Jun-2019 31-

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

    Deloitte Chartered Accountants 706, "B" Wing, 7th Floor Haskins & Sells LLP ICC Trade Tower 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 DIRECT

  6. Slide 6: Independent Auditor's Review Report (continued)

    Deloitte Haskins & Sells LLP measurement principles laid down in the aforesaid Indian Accounting Standard and 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

  7. Slide 7: 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. 4. Zensar Technologies IM Inc. 5. Zensar Technologies IM B.V. 6. Zensar (Africa) Holdings Pty Limited 7. Zensar (South Africa)

  8. Slide 8: Statement of Unaudited Consolidated Results for Quarter ended June 30, 2020

    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 June 30, 2020 (INR Lakhs) Quarter Ended Year Ended Particulars 30-Jun-2020 31-Mar-2020 30-Jun-2019 3

  9. Slide 9: Statement of Segment Assets & Liabilities

    Statement of Segment Assets & Liabilities 30-Jun-2020 31-Mar-2020 30-Jun-2019 Unaudited Audited Unaudited 1 Segment Assets Trade Receivables Digital and Application Services 48,800 55,212 74,369 Digital Foundation Services 14,753 11,352 13,775 Total Trade Receivables 63,553 66,564 88,144 Inventories

  10. Slide 10: Zensar reports PAT at 7.4% in Q1FY21

    Zensar reports PAT at 7.4% in Q1FY21 An increase of 5.5% QoQ in INR terms Pune, India, July 23, 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 res

  11. Slide 11: Zensar named Niche Player in 2020 Gartner Magic Quadrant

    • Zensar named Niche Player in the 2020 Gartner Magic Quadrant for Data Center Outsourcing and Hybrid Infrastructure Managed Services, North America • Zensar named Niche Player in the 2020 Gartner Magic Quadrant for Managed Mobility Services, Global • Zensar’ s ZERF gets an outstanding recognition b

  12. Slide 12: Q1 FY21 Revenue and Profitability snapshot

    Q1 FY 21 Revenue and Profitability snapshot Q1 FY21 Growth Particulars Q-o-Q Y-o-Y USD Mn INR Mn USD INR CC USD INR CC Revenue $ 130.8 ₹ 9912 (7.0%) (2.6%) (4.8%) (14.7%) (7.0%) (12.1%) EBITDA $ 18.9 ₹ 1430 (3.5%) 1.0% (13.4%) (5.6%) EBIT $ 13.0 ₹ 987 (5.9%) (1.4%) (20.3%) (13.2%) PAT $ 9.7 ₹ 733 0.

  13. Slide 13: Income Statement (USD Mn)

    Income Statement (USD Mn) Income Statement (USD Mn) Q1 FY 20 Q4 FY 20 FY 20 Q1 FY 21 Operating revenue 153.3 140.6 589.5 130.8 Sequential Growth 3.1% -1.9% -7.0% Year-Over-Year Growth 16.4% -5.4% 5.8% -14.7% Cost of revenue 108.2 100.0 425.6 93.1 Gross profit 45.1 40.6 163.9 37.7 Gross profit % of r

  14. Slide 14: Income Statement (INR Mn)

    Income Statement (INR Mn) Income Statement (INR Mn) Q1 FY 20 Q4 FY 20 FY 20 Q1 FY 21 Operating revenue 10,661 10,178 41,768 9,912 Sequential Growth 1.8% -0.3% -2.6% Year-Over-Year Growth 20.8% -2.8% 7.1% -7.0% Cost of revenue 7,524 7,240 30,159 7,058 Gross profit 3,137 2,938 11,608 2,855 Gross profi

  15. Slide 15: Other Metrics

    Other Metrics Q1 FY 20 Q4 FY 20 FY 20 Q1 FY 21 Revenue by Service Offering (as % of Revenue) Digital & Application Services (DAS) 82.8% 83.8% 84.0% 81.2% Digital Services 41.4% 50.2% 45.7% 50.5% Core Application Services 41.4% 33.6% 38.3% 30.7% Digital Foundation Services (DFS) 13.3% 12.2% 12.0% 18.

  16. Slide 16: Other Metrics: Client and Employee Data

    Other Metrics Q1 FY 20 Q4 FY 20 FY 20 Q1 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 + 91 87 87 85 5 Million dollar + 20 24 24 24 10 Million dollar + 9 10 10 9 20 Million dollar + 2 2 2 2 Revenue from top clients Revenue- top 5 c

  17. Slide 17: Other Metrics: Exchange Rates, Receivables, Cash and Debt

    Other Metrics Q1 FY 20 Q4 FY 20 FY 20 Q1 FY 21 Exchange Rates Rupee Dollar Rate Period Closing Rate 69.0 75.7 75.7 75.5 Period Average Rate 69.5 72.4 70.9 75.8 Accounts receivables (in days) Billed 68 54 54 49 Unbilled 36 33 33 26 Total 104 87 87 75 Cash and Cash Equivalents (USD mn) Balances with B

  18. Slide 18: 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

  19. Slide 19: Zensar reports PAT at 7.4% in Q1FY21

    Zensar reports PAT at 7.4% in Q1FY21 An increase of 5.5% QoQ in INR terms Pune, India, July 23, 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 res

  20. Slide 20: Zensar named Niche Player in 2020 Gartner Magic Quadrant

    • Zensar named Niche Player in the 2020 Gartner Magic Quadrant for Data Center Outsourcing and Hybrid Infrastructure Managed Services, North America • Zensar named Niche Player in the 2020 Gartner Magic Quadrant for Managed Mobility Services, Global • Zensar’ s ZERF gets an outstanding recognition b

  21. Slide 21: 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

  22. Slide 22: Analyst Presentation – Q1FY21

    Analyst Presentation – Q1FY21 Quarter Ending June 30, 2020 www.zensar.com | © Zensar Technologies 2020

  23. Slide 23: Safe Harbor

    Safe Harbor Q1 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

  24. Slide 24: Overview

    Overview Q1 FY21 Q1 FY21 Revenue at USD 130.8 M (QoQ -4.8% in cc terms) Part of $3 B RPG Portfolio Company of 59.5% Digital Revenue Group the $40 B APAX Group (Q1 FY21) 3 www.zensar.com | © Zensar Technologies 2020

  25. Slide 25: Q1 FY21 Snapshot

    Q1 FY21 Snapshot Q1 FY21 Headcount USD 130.8M 14.4% 41.2% Revenue EBITDA, Up by 50bps QoQ 9027 Top 5 Client Mix Core Business: 95.7% Core EBITDA 14.9% Attrition 13.5% 5M+ clients up by 4 YoY USD USD DSO USD 101.1M 1.5+B 150M 75 days Net cash USD M Pipeline Wins in Q1 FY21 Improved by 29 days YoY (41

  26. Slide 26: Financial Update

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

  27. Slide 27: Key Financials

    Key Financials Q1 FY21 REVENUE GROSS MARGIN EBITDA PAT USD USD USD USD 37.7M 18.9M 9.7M 130.8M 28.8% of Revenue 14.4% of Revenue 7.4% of Revenue Core: 14.9% of Rev QoQ -7.0% (USD) QoQ -7.2% (USD) Up by 50bps Up by 60bps QoQ -4.8% (cc terms) YoY -16.5% (USD) QoQ -3.5% (USD) QoQ +0.7% (USD) YoY -13.4%

  28. Slide 28: Revenue & EBITDA Walk

    Revenue & EBITDA Walk Q1 FY21 -1.6% 130.8 140.6 -3.3% -2.2% Revenue Walk (In USD M terms) Q4FY20 Rev Mix & Volume Retail/CS impact Exchange Impact Q1FY21 -2.2M -4.6 M -3 M Gross Margin 0.2% 0.4% 2.4% 14.4% EBITDA Walk 13.9% -0.6 % (In % of Rev terms) -1.9% Q4FY20 Exchange Volume & Direct Cost Exchan

  29. Slide 29: Client Metrics

    Client Metrics Q1 FY21 MILLION DOLLAR CLIENTS (LTM) CLIENT CONCENTRATION 65.2% 24 24 24 Q1 FY 21 51.4% 23 41.2% 20 60.4% Q4 FY 20 47.0% 38.0% 63.6% 9 9 10 10 9 Q3 FY 20 49.3% 39.6% 62.6% 2 2 2 2 2 Q2 FY 20 48.0% 37.6% Q1 FY 20 Q2 FY 20 Q3 FY 20 Q4 FY 20 Q1 FY 21 61.3% Q1 FY 20 49.2% 5M+ Clients 10M+

  30. Slide 30: Key Wins Highlights Q1 FY21

    Key Wins Highlights Q1 FY21 Proactive Proposals land robust wins in our Top existing clients Leading American US-based Gaming company $150 Hi-Tech company Mn+ Large US-based medical devices mfg. company Leading Banking & Fin. Services Conglomerate TCV wins in Leading Sportswear Global Internet Entit

  31. Slide 31: Revenue Split

    Revenue Split Q1 FY21 Region Split & Growth (cc) 8.6% 2.5% Vertical Split & Growth (cc) Geography QoQ (cc) YoY (cc) 19.4% 45.2% Vertical QoQ (cc) YoY (cc) 11.9% 14.3% 12.0% US (4.8%) (15.0%) 12.1% Hi-Tech 3.5% 0.7% Manufacturing (4.3%) (19.1%) 73.8% Europe (8.1%) (16.0%) Insurance (7.0%) (4.4%) Hi T

  32. Slide 32: Business Update

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

  33. Slide 33: Zensar's New Propositions

    Zensar’s New Propositions Q1 FY21 Robust Pipeline with wins in Multiple Clients Apr ‘20 Feb ‘20 Mar ‘20 Transforming experiences – Sound foundation built Best in Class cost-reduction, creating Novel Virtual Systems D3A with digitally native DFS powered by a leading portfolio of of engagement solutio

  34. Slide 34: Digital Foundation Services

    Digital Foundation Services Q1 FY21 Cloud and Infrastructure Services (CIS) Business has now evolved across the spectrum to become Digital Foundation Services Business Outcome based; Vertical focused Digital Transformation enabled by DFS Aligned to key areas of CIO / CTO spend in Enterprise 4.0 Clou

  35. Slide 35: Digital Foundation Services: Analyst recognition and impressive wins

    Digital Foundation Services Q1 FY21 Analyst recognition and impressive wins FEATURED IN MQ FOR: DC FEATURED IN ISG PROVIDER LENS FEATURED AS 'Strong Outsourcing, Managed Mobility REPORTS FOR: Digital workplace, Public Performer' in Forrester Wave FEATURED As MAJOR CONTENDER FEATURED AS DISRUPTOR Man

  36. Slide 36: Analyst Coverage & Recognition

    Analyst Coverage & Recognition Q1 FY21 Aspirants in Salesforce Peak Niche Player in the 2020 Gartner Matrix 2020 Magic Quadrant for Data Center ‘Aspirant’ in BFS Risk and Positioned as a ‘Major Contender’ in Outsourcing and Hybrid Compliance IT Services Guidewire Services Everest PEAK HFS HIGHLIGHT:

  37. Slide 37: Employee & Community Wellness

    Employee & Community Wellness Q1 FY21 Zensar is committed to keep the Health and Safety of its people at the very centre First of its kind 4-day Reskilling, upskilling, 100% Adoption of 100% virtual training L&D : 72K+ technical Digital Native App to track workshop clocking & 100+ capability built a

  38. Slide 38: RPG Group Overview

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

  39. Slide 39: RPG Group: Key Financials

    RPG Group: Key Financials Q1 FY21 Gross Total Income (Rs Cr.) FY15-19 CAGR: EBITDA PAT FY15-19 EBITDA 9.8% PAT 10.4% CAGR: 5.6% 2,423 23,833 2,218 21,766 2,014 2,045 19,183 19,271 20,052 1,668 1,031 1,099 879 980 739 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Market Cap Net Worth ROE ROCE 9,0

  40. Slide 40: RPG Group: Key Financials

    RPG Group: Key Financials Q1 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 - - Jul-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Equity Share Information Shareholding Pattern (as on 30th

  41. Slide 41: Thank You

    ZenSar Thank You

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