Zensar reports 84.4% drop in net profit for March quarter

PUNE: RPG Group IT firm Zensar reported a net profit of Rs 10.7 cr for the quarter ended March 31,2017, a drop of 86.6% from the previous quarter and 84.44 % from the corresponding quarter in 2016. Total revenues for the period were Rs 743.7cr, up 5.5% sequentially and marginally higher as compared to the corresponding quarter last year.

Sandeep Kishore, CEO, Zensar, said that the drop in net profit was attributable to a drop in operating margins combined with a forex impact of Rs 26.54cr during the quarter. Further, the company made provisions for amortisation of certain tangible assets during the quarter worth Rs 25.75 cr, which also had an impact on profitability.

Zensar also reported a net profit of Rs 238.37cr for the financial year 2016-17, as compared to Rs 292.3cr the previous year. The total revenues for the period went up by 3.5% on a constant currency basis. Kishore said that the organisation is pivoting to focus on digital, and that digital revenues for Q4FY17 were 34.1%. This was an increase of 8.1% sequentially and almost 27% year on year. He added that the numbers for the quarter included the results of the Foolproof acquisition done in November 2016 and hence weren’t comparable to the previous year.