Zensar net up at 390 M

By siliconindia staff writer   |   Friday, 29 April 2005, 07:00 Hrs
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PUNE:Zensar Technologies has reported a consolidated net profit of 390 million for the year ended March 31, 2005, compared to 126 million the previous year.

Zensar Technologies, a joint venture between the RPG Group and Fujitsu realized much of its profit from the sale of its Nagar Road assets in Pune which gave the company a cash flow of over 350 million.

The building and land was sold following the management’s decision to build fully integrated development facilities at Kharadi, Pune.

The revenues for the year showed an increase of 29 percent at 3.45 billion compared to 2.67 billion in the same period last year.

Ganesh Natrajan, Zensar’s deputy chairman and CEO said, “The strong results reported by Zensar are reflective of the Compan’s pioneering solution BluePrint framework, which has directly contributed over 33 percent to the new business in the current year”.

Natrajan said offshore business increased to 43 percent of revenues from 38 percent of previous year. The BPO business was on track with a good order book to break even in Q4 2005-06.

Zensar has moved into a new SBU driven business model, which will enable it to strengthen its positioning within existing customer accounts, while at the same time, drive new business acquisition in focused markets and geographies. The new SBU model is also aimed at enhancing profit margins with the SBUs becoming fully integrated profit centers. The four SBUs are Application Portfolio Management (APM), Enterprise Application Services (EAS), Innovative Technology Solutions (ITS) and Business Process Outsourcing and Optimization (BPO).

Zensar is currently in discussions with three U.S. companies for possible acquisition. "We have talked to 40 to 42 companies but have not found the right fit, he said, adding that at least one acquisition in the APM/EAS space would happen in the next four months," informed Natarajan.

Zensar also announced the launch of its Global Delivery Model (GDM), which supports a virtual community of software professionals working from geographical locations across the globe to build software solutions using Zensar's Solution BluePrint (SBP) framework. This model dispenses the need for establishing and maintaining expensive brick and mortar structures to house teams of software professionals.

Zensar's center at South India will be among the first the run the GDM. The company is also seeking help from NASSCOM and UGC for running this GDM and is tying up with an Indian university for launching the GDM. Natarajan said that the company is still in process of identifying locations in Hyderabad, Chennai or Kolkata.

Over 30 new customers and 700 new resources were added during the year.

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