Zensar Technologies stock plunges 13% on weak Q3 numbers

Shares of Zensar Technologies plunged 13 per cent to Rs 172 on the BSE on Friday after the company reported weak set of numbers for December quarter (Q3FY20) with revenues declining 5.9 per cent in dollar terms on sequential basis. Analysts had expected 1.1 per cent quarter-on-quarter (QoQ) revenue growth in US dollar terms.

In rupee terms, the company’s revenue was down 4.8 QoQ at Rs 1,021 crore. Net profit more-than-halved to Rs 39.50 crore, while earnings before interest, tax, depreciation and amortisation (Ebitda) plunged 53.6 per cent QoQ to Rs 69.60 crore. Ebitda margin declined 250 basis points (bps) to 11.5 per cent from 14 per cent.

The management said a combination of furloughs, project specific customer ramp downs and continued softness in the retail vertical resulted in a soft quarter.

At 09:48 am, Zensar Technologies was trading 12 per cent lower at Rs 175 on the BSE. The stock was quoting close to its 52-week low of Rs 168 touched on December 17, 2019. The trading volumes on the counter more than doubled with a combined 362,439 equity shares changing hands on the NSE and BSE so far.

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