Zensar Technologies Q3 Results Review - Tepid Quarter Due To Hi-Tech Weakness: Motilal Oswal

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..Motilal Oswal Report.Zensar Technologies Ltd.'s reported a weak performance in Q3 FY24 as revenue declined 3.2% QoQ in constant currency due to continued pressure in hi-tech vertical and higher furloughs.However, it was above our estimate of 4.4% QoQ decline. Deal total contract value rose 28% YoY to $168 million but fell 14% sequentially from its peak in Q3 FY24. Adjusted Ebitda margin was in line with our estimate of 16.2%, with reported Ebitda margin down 140 basis points QoQ due to the reversal of bad debt provisions.Zensar management expressed optimism on growth in most of its verticals, but it sees constraints in hi-tech (26% of revenues) segment, including extended furloughs. The weakness in hi-tech has impacted the overall growth of the company, leading to YoY decline in revenue for the last five quarters.We continue to see muted growth in Q4 as well, resulting in a weak exit and in turn impacting FY25 revenue growth. Given the challenging near-term macro outlook, especially in key verticals like hi-tech and manufacturing (52% of Q3 revenues), we expect FY25 revenue growth to be 7.1%, before picking up in FY26. We factor in a modest USD revenue compound annual growth rate of 5.5% over FY23-26E..Click on the attachment to read the full report:.IDFC First Bank Shares Fall After It Lowers Five-Year Loan Book Guidance.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 Q3 Results Review - Tepid Quarter Due To Hi-Tech Weakness: Motilal Oswal

Adjusted margin now at more sustainable level.

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