Zensar Technologies (504067) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 reported revenue was $157M (₹13,256M), up 8.6% YoY and 0.5% QoQ, with gross margin at 30.1% and EBITDA margin at 15.6%.

• Order book reached a record $205.3M, with strong project wins in cloud and AI.

• Interim dividend of INR 2 per share declared, payable to shareholders as of January 28, 2025.

• Net headcount addition of 277, voluntary attrition at 10%, and headcount increased to 10,517.

• Acquisition of BridgeView Life Sciences, LLC for USD 21.5M completed in July 2024.

Financial highlights

• Revenue grew 8.6% YoY and 0.5% QoQ in reported currency; constant currency growth was 7.5% YoY and 0.7% QoQ.

• Q3FY25 net profit (PAT) was $18.9M, up 1.7% QoQ but down 2.7% YoY; consolidated net profit was ₹1,598M.

• Operating income (EBIT) reached $21.7M, up 6.0% QoQ and 2.3% YoY.

• Cash and cash equivalents stood at $269.2M; DSO improved by 3 days to 68.

• Basic EPS (consolidated) for Q3 FY25 was ₹7.04.

Outlook and guidance

• Management targets double-digit revenue growth for FY26 and mid-teens margin guidance.

• Continued investment in talent, innovation, and operational improvements.

• Pipeline remains healthy with improved win rates and a strong order book.

• Interim dividend declared for FY25, with record date set for January 28, 2025.

• Some macroeconomic uncertainties and policy changes are noted as potential headwinds.