Zensar Tech hits new high

Zensar Technologies opened over 4.5% higher today morning at Rs.324 and jumped up 10% to hit a new 52-week high at Rs.341. Volumes have gone up almost 4x.

The stock hit a high as its bottomline exceeded all fund/analysts estimates. Though consolidated revenue was down less than 1% (QoQ) at Rs.1213 crore, net profit came in 56% higher at Rs.119n crore.

Its EBIT was up by a good 26.64% at Rs.141 crore while EBIT margins went up from 9.08% to 11.6%.

For FY23, the PAT stood at 6.7% of revenue.

The company reported net cash and cash equivalents of $201.5M at the end of Q4FY23.

In terms of geographical growth in constant currency, US region reported a 6.5% YoY growth; Europe of 6%, South Africa at 3.8%.

In terms of sectoral growth, BFSI reported a 29.6% of YoY growth in constant currency, Hi-Tech and Manufacturing at 2.7% and Consumer Services was more or less flat, reporting growth at 0.1%.

The company announced a final dividend of Rs.3.50/share (FV of Rs.2) for FY23.