Zensar reports 16.5 per cent revenue growth; says digital contributes over 12 per cent to revenue

MUMBAI: Zensar Technologies, a Pune-based IT services company, reported a 16.5 per cent rise in first-quarter revenue from a year earlier, driven by growth in its digital and ecommerce business which now accounts for over 12% of its revenue.

For the quarter ended June 30, revenue rose to Rs 704.6 crore, from Rs 604.8 crore in the previous year. Profit after tax rose 36 per cent year-over-year to Rs 76.08 crore.

“This has been a quarter of robust growth for Zensar on all fronts. The company has been focusing on new client acquisition and strategic deals in Digital and eCommerce, which has resulted in good wins and a substantial order pipeline,” Ganesh Natarajan, Vice Chairman and CEO of Zensar, said in a statement.

Zensar also said that revenue from digital solutions had contributed 12.6 per cent to the company's revenue im FY15 and that it was continuing to invest in new products, services and skills.

In FY15, Zensar reported revenue of Rs 2627.68 crore, implying that the company derived about Rs 331 crore from digital services.

Indian IT companies have begun disclosing the revenue contribution from digital, as analysts say performance in that business will be a key factor to distinguish winners from losers.

Last week, Tata Consultancy Services, India's largest IT services company, said digital was about 12 per cent of its overall revenue. In effect, digital contributes about $2 billion a year to TCS.