Zensar Technologies Q1 FY25 Earnings Call Summary
Earnings Performance
• Date of Call: July 23, 2024
• Revenue: $154.4 million (4.2% sequential growth)
• Gross Margin: 30.4%
• EBITDA: 15.2% (normalized margin of 16.3% after one-time impact)
• Employee Happiness Score: 84%
• Attrition Rate: 10.6%
Key Achievements
• High customer satisfaction scores
• Acquisition of BridgeView Life Sciences to enhance healthcare capabilities
• Insights on operational performance and service line growth
Macroeconomic Environment
• Ongoing volatility due to geopolitical threats and cybersecurity challenges
• Expected market stability in FY '25
• Strategic focus on resilience and client support
Concerns and Responses
• Flat Deal Wins: Addressed by CEO Manish Tandon, highlighting positive order bookings and pipeline health
• Client Furloughs: Discussed implications, particularly in telecom, media, and technology sectors
• Bankruptcy Impact: Already accounted for in financials
Client and Revenue Quality
• Days Sales Outstanding (DSO) at a ten-year high, indicating strong revenue quality
• Minimal risk from smaller accounts despite occasional client losses
Strategic Focus Areas
• BFSI Vertical: Strong recovery noted
• Healthcare Investments: Strategic rationale behind BridgeView acquisition, focusing on Pharma Commercial
• African Market: Strategic region with strong organic growth despite currency decline
Hiring and Growth Initiatives
• Increased net headcount for the second consecutive quarter
• Focus on cross-training existing employees and onboarding new talent
• Successful cross-selling initiatives contributing to growth across various verticals
Management Commitment
• Reaffirmation of commitment to shareholder interests and maintaining growth momentum across sectors.

Zensar Technologies Q4 FY24 Earnings Call Summary
Earnings Call Announcement
• Date: May 2, 2024
• Call Date: April 25, 2024
• Key Executives: CEO Manish Tandon, CFO Sachin Zute
Financial Performance
• Q4 Revenue: $148.1 million (2.4% sequential growth)
• Full-Year Services Revenue: $591.3 million (1.0% year-on-year increase)
• PAT Growth: 430 basis points
• Gross Margin: 30.6%
• EBITDA Margin: 17.8%
• Order Book Growth: 22% year-on-year
• Final Dividend Recommended: Rs. 7 per share
• Sustainability Commitment: 98% green energy usage in Pune campus
Operational Efficiency
• Utilization Improvement: 300 basis points
• Voluntary Attrition Rate: 10.9%
• Employee Addition: 816
• Revenue Contribution by Service Lines: 52.7%
• Learning Coverage: 98.6% with doubled average learning hours per employee
Growth Outlook
• CEO's Confidence: Positive growth trajectory despite macroeconomic uncertainties
• Increased Order Bookings: Sequential rise in Hitech segment
• EBIT Margin Expectation: 15% to 16% for FY '25
Client Diversification and Sector Insights
• New Client Accounts: 34 opened this financial year (25% in TMT sector)
• U.S. Banking and Financial Services: Faster growth compared to U.K. and South Africa
• Healthcare Sector: Focus on growth strategies and cautious approach to generative AI
IT Services Landscape
• Shift Towards Bundled Services: Application and infrastructure management combined with hardware/software
• Importance of Agility: Responding to client needs, especially in financially stressed sectors
• Leadership Stability: No wholesale changes planned for the existing team
Conclusion
• CEO's Reflection: Gratitude towards team and investors, aiming for sequential revenue growth despite challenges.

Zensar Technologies Q3 FY24 Earnings Call Summary
Earnings Call Announcement
• Date: January 30, 2024
• Transcript available for Q3 FY24 earnings call held on January 22, 2024.
• Key executives: CEO Manish Tandon, CFO Sachin Zute.
Financial Performance
• Services revenue: $144.5 million
• 3.0% sequential decline
• 1.3% year-over-year growth in constant currency
• Profit margins: 700 basis point increase in profit after tax year-over-year.
• Key verticals:
• Growth in Banking and Financial Services (BFSI)
• Declines in Hi-Tech and Healthcare.
• Interim dividend approved: Rs. 2 per share.
Operational Efficiency
• 310 basis point increase in utilization in Q3 FY24.
• Advanced Engineering Services: 3% growth.
• Application Services: 8% decline.
• Focus on talent transformation and generative AI initiatives.
Macroeconomic Challenges
• Impact on discretionary spending noted by Manish Tandon.
• Positive growth in BFSI (12.6%) and Consumer Services (5.5%).
• Hi-Tech sector remains a concern.
Furloughs and Growth Trends
• Sandeep Shah inquired about growth declines attributed to furloughs.
• Some sectors expected to continue experiencing furloughs into Q4.
• Sachin Zute discussed the impact of furloughs on margins.
EBITDA Margins and Client Relationships
• Sustainable EBITDA margins projected at 14-16%.
• Challenges in client contributions and deal cancellations acknowledged.
• Strategic focus on improving client relationships and potential acquisitions in healthcare.
Portfolio Management Strategy
• Emphasis on account-level evaluations for investments.
• Repositioning strategy focused on Experience, Engineering, and Engagement.
• Optimism for growth in the newly established Healthcare vertical.
Order Book Insights
• Year-on-year improvement in order book: $167.5 million this quarter.
• Significant new deal wins noted, highest in nearly ten quarters.
• Challenges in the Hi-Tech vertical acknowledged.
Conclusion
• Manish Tandon expressed gratitude to participants for joining the call.

Zensar Technologies Q2 FY24 Earnings Conference Call Summary
Financial Performance
• Revenue: $150.2 million, 0.6% sequential growth.
• Gross Margin: 31.8%, affected by wage hikes and one-time benefit reversal.
• EBITDA: 18.6%, improved by approximately 10 percentage points year-over-year.
• Cash and Cash Equivalents: Declined to $227.1 million due to tax payments and dividends.
Market Insights
• US Market: Decline due to project closures.
• Growth Areas: Notable growth in Europe and South Africa.
• New Vertical: Tracking Healthcare & Life Sciences separately for long-term potential.
Operational Highlights
• Service Line Performance:
• Advanced Engineering Services: Up 7.8%
• Experience Services: Up 3.1%
• Data Engineering and Analytics: Experienced a decline.
• Operational Efficiency: Focus on pyramid optimization and utilization management.
Strategic Focus
• Client-Centric Strategies: Emphasis on execution excellence and enhancing client value.
• Healthcare & Life Sciences: Strategic focus on leveraging domain expertise for growth.
• BFSI Sector: Strengthened presence, particularly in insurance.
Challenges and Outlook
• Macroeconomic Environment: Ongoing challenges affecting technology spending.
• Order Book: $194.8 million expected to convert to revenue, with potential revenue leakage.
• Margin Guidance: Commitment to maintaining margins while investing in capabilities.
Questions and Clarifications
• EBITDA Discrepancy: Explained by a one-time reversal of management bonuses.
• Capability Building: Initiatives in cloud-native capabilities, Experience Services, and Generative AI.
• New Sales Organization: Focus on net new business showing positive results.
Future Growth Strategies
• Targeting Large Deals: Aiming for contracts with annual values of $5 million or more.
• Client Quality Focus: Emphasis on larger clients and strong performance in existing-new client segments.
• Adjusted EBITDA Margin Goal: Targeting 14-16% with impacts expected in Q3 and Q4.
Conclusion
• Operational Efficiency: Stable margins allowing for reinvestment in growth opportunities.
• Gradual Progress: Aiming to improve performance gradually, moving up a quadrant each year.

Zensar Technologies Q1 FY24 Earnings Call Summary
Earnings Call Announcement
• Date: July 26, 2023
• Call Date: July 20, 2023
• Key Executives: CEO Manish Tandon, CFO Sachin Zute
Financial Performance
• Service Revenue: $149.2 million (2.4% sequential growth)
• Overall Revenue: $149.3 million (1.3% sequential increase)
• Gross Margin: Improved to 33.6%
• EBITDA: Increased to 18.7%
• Attrition Rate: Decreased to 15.9%
• Order Book: $154.2 million
Regional Performance
• U.S. Region: Slight year-over-year decline
• Europe and South Africa: Positive growth
• Vertical Performance:
• Banking, Financial Services, and Insurance: Strong performance
• Hi-tech and Consumer Services: Challenges due to reduced client spending
Operational Highlights
• Utilization Rates: Increased from 81.4% to 82.5%
• Cash Reserves: Rose to $233.8 million
• Effective Tax Rate: Improved to 25.7%
• ESG Initiatives: 49.3% reduction in carbon emissions since FY '19
Strategic Insights
• Market Conditions: Near-term demand challenging, but long-term outlook positive
• New Accounts: Nine opened in the quarter
• Wage Hikes: Implemented in July, slightly lower than previous year
Cost Management and Profitability
• Cost Optimization: Employee expense reductions and improved utilization rates
• Profitability: Confidence in sustaining mid-teen profitability while reinvesting in growth
Cross-Selling and Service Lines
• Growth Areas: Experience services and advanced engineering, particularly with AI technologies
• Annuity Business Models: Focus on newer models rather than traditional large-scale deals
Employee and Workforce Strategy
• Workforce Composition: Shift towards filling attrition vacancies with junior employees
• Retention Policies: Implemented to achieve best-in-class retention rates
Future Outlook
• Acquisition Targets: Actively scouting to enhance capabilities
• IT Spending Trend: Overall positive despite low visibility
Closing Remarks
• Engagement: Manish Tandon thanked participants for their involvement in the call.

Zensar Technologies Q4 FY23 Earnings Call Summary
Earnings Call Announcement
• Date: May 17, 2023
• Transcript available for Q4 FY23 earnings call held on May 12, 2023
• Key executives: CEO Manish Tandon, CFO Sachin Zute
Financial Performance
• Q4 FY23 Results:
• Service revenue: $145.8 million (2% sequential growth in constant currency)
• Total revenue: $147.5 million (slight year-over-year decline)
• Full Fiscal Year Results:
• Total revenues: $604.2 million (10.3% increase)
• Growth in Banking, Financial Services, and Insurance sectors
• Challenges in Consumer Services due to client budget constraints
Geographic Performance
• Mixed results in the U.S. and Europe
• Strong growth in South Africa
Operational Highlights
• Improved gross margins and EBITDA
• Decreased employee attrition and increased employee satisfaction
• Significant rise in green energy usage and sustainability efforts
Key Achievements
• 150% increase in green energy contributions
• Water-positive status at Pune campus
• Focus on digital transformation solutions despite challenging demand environment
Financial Updates from CFO
• FY '23 revenue growth: 6.1% year-on-year
• Fourth-quarter revenue: $147.5 million
• Improved EBITDA margins due to operational efficiencies
Demand Landscape
• Challenges in Hitech, Manufacturing, and Consumer Services sectors
• Growth potential in UK and South Africa
Client and Revenue Insights
• Revenue recovery expected for clients with documentation issues
• Importance of client centricity emphasized for growth sustainability
Service Expansion Strategy
• New service lines: E-SaaS, data analytics, advanced engineering services, experience services
• Focus on organic growth over M&A for sustainable success
Organizational Changes
• Creation of new roles: Chief Operating Officer, Chief Business Officer for integrated studio services
• Emphasis on deep client relationships and strategic discussions
Wage and Margin Management
• Wage hikes occur in Q2 of each financial year
• Aim to maintain mid-teen EBITDA margins despite wage increases
Conclusion
• Commitment to shareholder service and effective operational strategies
• Gratitude expressed for stakeholder engagement during the call

Zensar Technologies Q3 FY23 Earnings Call Summary
Announcement Details
• Date of Call: January 24, 2023
• Transcript Availability: Accessible on the company's website
• Key Executives Present:
• CEO Manish Tandon
• CFO Sachin Zute
• Communication Signed By: Gaurav Tongia, Company Secretary
Financial Performance
• Q3 FY23 Revenues: $145.9 million
• Sequential Decline: 5.9%
• Year-over-Year Growth: 3.6%
• Gross Margins: Improved to 27.4%
• EBITDA: Increased to 11.3%
• Cash Position: $179.4 million
CEO Insights
• Leadership Pride: Tandon expressed pride in leading 10,500 employees.
• Sustainable Growth Focus: Emphasized high-quality service delivery and operational efficiencies.
• Client Relationships: Importance of transitioning to stable, annuity-based revenue streams.
Market Challenges
• Sector-Specific Pressures: Noted challenges in Hi-Tech and Consumer Services.
• Geographical Performance:
• US: 8% sequential decline
• Europe: Experienced growth
• Macroeconomic Uncertainties: Ongoing challenges acknowledged.
Strategic Focus
• Profitability Improvement: Emphasis on internal cost management.
• Service Offerings: No immediate need for new service investments.
• Client Relationship Building: Key to driving future growth.
Analyst Inquiries
• Growth Challenges: Concerns raised about large customers facing budget cuts.
• Margin Improvements: Tandon reassured that recent deals were not hindered by margin issues.
• Revenue Growth Strategies: Focus on enhancing client relationships and expanding service lines.
Future Outlook
• Mid-Teen EBITDA Margin Target: Expected within the next three to four quarters.
• Service Line Evaluations: Potential additions, including healthcare.
• Inorganic Growth Opportunities: Open to considering acquisitions due to healthy cash reserves.
Employee Retention
• Attrition Rates: Significant reduction noted (350-basis point decrease).
• Employee Development Investments: Focus on career progression, learning, and recognition.
Conclusion
• Optimism for Future: Tandon expressed confidence in sustainable growth strategies despite current challenges.