Shares of Zensar Technologies rose more than 10% in intraday trade on Friday to hit a 52-week high of Rs 341 per share after the company’s gross profit rose 11.2% year-on-year to Rs 387 crore in the January-March of Fy23 (Q4FY23).
The Pune-based company’s operating revenue rose 5.1% year-on-year to Rs 1,212 crore in Q4FY23 from Rs 1,153 crore in the year-ago period. Vertically, high-tech, manufacturing, banking and insurance were the largest revenue contributors, accounting for between 16% and 31.1% of revenue in the March quarter.
For the full fiscal year (FY22-23), the IT company’s operating revenue rose 14.2% year-on-year to Rs 4,848 crore, while gross profit rose 2% to Rs 1,348 crore.
Meanwhile, Ebitda rose 7% YoY to Rs 175 crore in Q4FY23 and increased 30.4% QoQ, up from Rs 134 crore in Q3FY23.
Commenting on the financial results for the March quarter, management said continued disciplined operating efficiencies helped improve the company’s margins.
“Our daily sales outstanding (DSO) has been one of the best in recent quarters, and collections have been healthy for the company. DSO for the quarter was 74 days, an improvement of 6 days from the previous quarter. Our Q4FY23 order book was $1.749 million, a seasonally high growth of 34% from the previous quarter,” said Sachin Zute, CFO of Zensar Technologies.