Zensar Technologies Q1 Results Review - Revenue Growth Arrives Along With Early Hiccups: Nirmal Bang

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.Zensar Trechnologies Ltd. posted mixed Q1 FY25 results with strong revenue beat, margin miss and decent total contract value deal wins (flat YoY). Revenue at $154 million was ~4% above our estimate on the back of broad-based growth across verticals and service lines. Ebit margin missed our estimate due to higher operational cost and one-time provisioning of $1.75 million (on account of its $900,000 quarterly run-rate client filing for bankruptcy). This followed by wage hikes from July-24 onwards comes as an early hiccup to margin expansion. As promised at the end of FY24, broad-based growth was delivered in Q1 FY25, which under the new CEO Manish Tandon is the sixth consecutive quarter of QoQ revenue growth, barring Q3 FY24. Despite this, caution prevails around macro uncertainty amid heightened geopolitical threats which make the demand environment volatile. This is further accentuated by unusual furloughs seen by Zensar in the Hi-Tech vertical. We continue to believe that the volatility revolves around the broad-based vertical growth across its business. Due to this furlough scenario, it is also not very clear if the worst on the Hi-Tech vertical side is over. .Click on the attachment to read the full report:.Cyient DLM Q1 Results Review - Strong Growth In Aerospace, Defense Drives Revenue: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Zensar Technologies Q1 Results Review - Revenue Growth Arrives Along With Early Hiccups: Nirmal Bang

Post solid revenue growth and flattish deal wins in Q1, the brokerage has increased its EPS estimates for FY26E/FY27E by ~3% each primarily due to improvement in USD revenue growth.

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Zensar Technologies Q1 Results Review - Revenue Growth Arrives Along With Early Hiccups: Nirmal Bang

Post solid revenue growth and flattish deal wins in Q1, the brokerage has increased its EPS estimates for FY26E/FY27E by ~3% each primarily due to improvement in USD revenue growth.

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