Zensar Technologies Ltd Q2FY21 consolidated PAT plunges to Rs. 0.50 crore

ZENSAR TECHNOLOGIES LTD. has reported financial results for the period ended September 30, 2020.

Financial Results (Q2 FY20-21) - QoQ Comparison

The company has reported total income of Rs.975.53 crores during the period ended September 30, 2020 as compared to Rs.1009.20 crores during the period ended June 30, 2020.

The company has posted net profit / (loss) of Rs.0.50 crores for the period ended September 30, 2020 as against net profit / (loss) of Rs.73.31 crores for the period ended June 30, 2020.

The company has reported EPS of Rs.0.02 for the period ended September 30, 2020 as compared to Rs.3.21 for the period ended June 30, 2020.

Financials	Q2 FY20-21	Q1 FY20-21	% Change
Total Income	₹ 975.53 crs	₹ 1009.20 crs	-3.34%
Net Profit	₹ 0.50 crs	₹ 73.31 crs	-99.32%
EPS	₹ 0.02	₹ 3.21	-99.38%

Financial Results (Q2 FY20-21) - YoY Comparison

The company has reported total income of Rs.975.53 crores during the period ended September 30, 2020 as compared to Rs.1090.36 crores during the period ended September 30, 2019.

The company has posted net profit / (loss) of Rs.0.50 crores for the period ended September 30, 2020 as against net profit / (loss) of Rs.79.87 crores for the period ended September 30, 2019.

The company has reported EPS of Rs.0.02 for the period ended September 30, 2020 as compared to Rs.3.49 for the period ended September 30, 2019.

Financials	Q2 FY20-21	Q2 FY19-20	% Change
Total Income	₹ 975.53 crs	₹ 1090.36 crs	-10.53%
Net Profit	₹ 0.50 crs	₹ 79.87 crs	-99.37%
EPS	₹ 0.02	₹ 3.49	-99.43%

Financial Results (6 months ended FY 20-21) - YoY Comparison

The company has reported total income of Rs.1984.73 crores during the 6 months period ended September 30, 2020 as compared to Rs.2176.01 crores during the 6 months period ended September 30, 2019.

The company has posted net profit / (loss) of Rs.73.80 crores for the 6 months period ended September 30, 2020 as against net profit / (loss) of Rs.154.38 crores for the 6 months period ended September 30, 2019.

The company has reported EPS of Rs.3.23 for the 6 months period ended September 30, 2020 as compared to Rs.6.74 for the 6 months period ended September 30, 2019.

Financials	Half-Year Ended FY20-21	Half-Year Ended FY19-20	% Change
Total Income	₹ 1984.73 crs	₹ 2176.01 crs	-8.79%
Net Profit	₹ 73.80 crs	₹ 154.38 crs	-52.2%
EPS	₹ 3.23	₹6.74	-52.08%

During the quarter ended 30th September 2020, in line with its strategy to focus on core businesses only, the Company had advanced its process to identify potential buyers for Third Party Maintenance ('TPM') business housed in its subsidiaries, PSI Holding Group Inc, Zensar Technologies IM Inc and Zensar Technologies IM B.V. (collectively referred to as "PSI Group" or "disposal group").

Subsequently, on 19th October 2020, the Company signed an agreement subject to approval of shareholders and other approvals for sale of PSI Group for a consideration of USD 10 million receivable upfront (subject to working capital adjustment) and USD 5 million performance based deferred earnouts. Accordingly, for September 2020 results, carrying amount of assets amounting to Rs. 18,974 lakhs and liabilities amounting to Rs. 6,108 lakhs in respect of the disposal group have been reclassified as "Held For Sale". On reclassification, the disposal group has been measured at the lower of carrying amount and fair value less transaction cost associated to sell and consequently, an "Adjustment in respect of excess of carrying amount including goodwill over recoverable amount on classification as Held for Sale" of Rs. 8,873 lakhs has been recognized in the Consolidated Profit and Loss for the quarter and half year ended 30th September 2020 and disclosed as exceptional item. On the eventual disposal of Asset Held for Sale, the Zensar Group will reclassify balance in Foreign currency translation reserve as on that date to Consolidated Statement of Profit and Loss. The disposal group does not constitute a separate major component of the Zensar Group and therefore has not been classified as discontinued operations in the Consolidated Statement of Profit and Loss.

Shares of ZENSAR TECHNOLOGIES LTD. was last trading in BSE at Rs.186.95 as compared to the previous close of Rs. 187.65. The total number of shares traded during the day was 13931 in over 666 trades.

The stock hit an intraday high of Rs. 189.6 and intraday low of 185.85. The net turnover during the day was Rs. 2607520.

Source : Equity Bulls

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