Financial Study: Zensar Technologies For Managerial Economics under Guidance of Dr. P.A.Johnson

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About Zensar Technologies

• Our Mission: Leveraging technology and processes to help customers attain their goals.

• Our Vision :Transformation partners to global corporations.

• Zensar Technologies (Parent Company RPG Group) provides Services such as Application Portfolio Management(PM), Enterprise Application Service, Innovative Technology Services(IT), Business process outsourcing (BPO) and optimisation, First Time Outsourcing

• 3,000 crore (US$567 million) company have Total associate count as of June 30th was 7293 including 315 associates

• Dr.Ganesh Natarajan, Vice Chairman & CEO,Zensar Technologies.

• Development Centres in Pune(HQ) and Hyderabad in India and Gdansk in Poland and customer base in 18 Countries.

Services By Zensar Technologies

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Services By Zensar Technologies(Specific)

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current ratio

0

0.5

1

1.5

2

2.5

2008 2009 2010 2011 2012

current ratios

• current ratio is also called as working capital as well as bankers ratio it is given as current assets divided by current liabilities.

• This ratio indicates two information

Working capital position

Short term solvency position

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current ratio

0

0.5

1

1.5

2

2.5

2008 2009 2010 2011 2012

current ratios

• This ratio shows capacity of the company to pay its current liabilities

• The standard ratio is 2;1 which indicates that for every 1 rupee liability there should be 2 rupees of current assets

• If the ratio is low it indicates inadequate working capital and unsatisfactory short term solvency position .

• If the ratio is very high it indicates inefficient utilisation of shareholders funds

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Net Profit Ratio

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

2008 2009 2010 2011 2012

NET PROFIT RATIO

• Net Profit Ratio : It is given by net profit divided by sales.

• This ratio shows relationship between net profit and net sales.

• This ratios shows profitability of the business.

• A higher ratio indicates higher profit and vice versa.

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Earning per Share(EPS)

• Earning per Share(EPS) : Net profit after tax-preference dividend/no of equity shares. This means earning made during the year on each equity shares

0

5

10

15

20

25

30

35

40

45

2008 2009 2010 2011 2012

EARNING PER SHARE

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Debt Equity ratio

0

0.1

0.2

0.3

0.4

0.5

0.6

2008 2009 2010 2011 2012

debt equity ratios

• Debt Equity ratio it is given by debt divided by equity.

• Debt =borrowed funds

• Equity=proprietors funds

• this ratios shows relationship between own funds and borrowed funds

• a standard ratio is 2:1 which indicates that for every one rupees of own funds 2 rupees can be borrowed

• if the ratio is very high it indicates excessive borrowings and repayment problems in the future

• if the ratio is very low it indicates under utilisation of borrowings capacity

Debtors Turnover Ratio

0

1

2

3

4

5

6

2008 2009 2010 2011 2012

debtors turnover ratios

• Debtors Turnover Ratio: this ratios means no of times the debtors are turned over. i.e goods sold and money collected from debtors. A higher ratio indicates quick sales and quick collection from the debtors.

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Stock for past 5 yrs ZENSAR TECHNOLOGIES LTD. 504067

Year Open High Low Close No. of

Shares

No. of

Trades Total Turnover

Deliverab

le

Quantity

% Deli.

Qty to

Traded

Qty

H-L

(Spread*)

C-O

(Spread*)

2008 192.00 203.70 71.00 78.35 32,07,206 50,998 43,42,47,053 19,43,515 60.60 132.70 -113.65

2009 81.00 351.00 64.65 324.10 55,35,846 83,647 1,16,74,84,788 31,09,765 56.18 286.35 243.10

2010 326.00 365.90 151.15 166.65 64,31,592 1,40,373 1,84,34,12,495 25,49,743 39.64 214.75 -159.35

2011 167.00 193.30 113.15 143.30 18,94,760 60,699 31,00,39,077 9,79,811 51.71 80.15 -23.70

2012 143.25 302.45 133.55 296.85 48,88,293 1,63,593 1,07,25,96,009 16,48,760 33.73 168.90 153.60

* Spread (All Prices in Rs. ) H-L : High-Low C-O : Close-Open

Ownership Pattern

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Price Movement

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Index Comparison

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Performance Chart

Growth Ladder

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Sector wise Spread

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Key Milestone

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Partnerships and Alliances

• Zensar and SOA Software announce Global Strategic Partnership in 2007

• IBM - Zensar has entered into a partnership with IBM Partner World to leverage the growing E-business market

• Zensar Technologies is a Microsoft Gold Certified Partner

• Zensar is a channel and service partner of SAP

• Zensar technologies is a worldwide recognized Oracle partner

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Subsidiaries

• Zensar Technologies Inc.

• Zensar Technologies (Singapore) Pte Limited

• Zensar Technologies (Shanghai) Co. Limited

• Zensar Technologies (UK) Limited

• Zensar Advanced Technologies Limited

• Subsidaries of Zensar Technologies Inc. - PSI Holding Group Inc.

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Awards • Zensar Technologies felicitated with Emerging Business Applications Award for 2009 at the Oracle UK Partner

Awards in London.

• Third consecutive CNBC award for Outstanding exporter of the year 2009 in IT, ITES & Electronics.[3][4][5]

• Oracle UK Partner Award

• Zensar felicitated by Special Jury Commendation Award by the then President of India, Dr. A.P.J. Kalam for outstanding commitment and contribution to Nation Building through CSR efforts.

• Zensar named as the Trailblazer of the Year 2006 by the NHRD for Best HR Practices.

• Zensar awarded the ‘Corporate Governance Business for Social Responsibility Award’ for 2006.

• Acquisitions and Joint Ventures

• Acquired ThoughDigital for US $ 24.9 million in 2007.

• Joint venture with a Tokyo Based EZA to form Zensar Advanced Technologies.

• Acquired Hyderabad based OBT global in 2005.

• Acquired Akibia Inc. worth $100 Million.

Competitors Name Last Price Market Cap. Sales Net Profit Total Assets

(Rs. cr.) Turnover

TCS 1,307.35 255877.29 38,858.54 10,975.98 24,952.86

Infosys 2,377.60 136529.51 31,254.00 8,470.00 29,757.00

Wipro 346.1 85,224.95 32,053.60 4,685.10 29,595.70

HCL Tech 601 41,711.26 8,907.22 1,950.42 7,305.45

Oracle Financ 2,952.35 24,801.66 2,605.85 1,089.23 6,247.04

Mahindra Satyam 108.9 12,816.23 5,964.21 1,202.80 4,567.90

Tech Mahindra 938.55 11,982.03 5,243.02 460.55 4,569.80

MphasiS 396.75 8,337.25 3,404.13 782.01 3,651.60

Patni Computer 515.8 7,657.37 2,202.43 499.78 3,382.03

Financial Tech 1,017.10 4,686.65 425.55 478.03 3,017.56

Hexaware Tech 112.05 3,320.49 678.58 231.98 858.55

MindTree 659.95 2,713.30 1,915.20 218.7 1,002.00

Infotech Enter 195.85 2,183.03 863.8 158.6 1,034.94

Persistent 428.2 1,712.80 810.36 137.39 838.39

NIIT Tech 280.2 1,683.56 827.46 113.12 641.85

Polaris Tech 125 1,493.41 1,749.91 183.41 917.11

Zensar Tech 253.55 1,102.92 712.75 94.55 3768.16

Rolta 67.15 1,083.32 1,468.07 327.34 3,686.97

Hinduja Venture 486.4 999.82 90.09 65.03 674.68

Tata Elxsi 232.3 723.34 514.85 33.95 223.23

Target for growth • New Markets for 2012 onwards: CHina, India, Middle East, SAARC countries

Market Dynamics

• Large and young populations and vast resource bases

• Transitional societies making drastic economic and political reforms

• Among the world’s fastest growing economies

• Transition from dependency to global interdependency with two way trade and capital flows

Steps to Grow

• New and growing domestic markets

• New sources of talent

• High IT Adoption and investment in Infrastructure

• Strong Govt promotion and support

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Steps towards transformation • Inaugurated ninth Global Delivery Centre in Bangalore in June 2012

• New strategies to develop, grow and retain talent : I Zen, Zen Points, Excellence Initiatives

• on-line sales-force support and Improve Processes

• on-line customer support and e-procurement

• Reduce Cost of services in BPO sector

• Redefine Processes and vendor-managed inventory

• strategic sourcing initiatives and sell product through e-channels

• Redefine Business Models

• outsource production

• leverage intangible assets

• intranet application for employee self-service

• Work from Home initiative launched

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Steps towards transformation(Domain Specific)

Strategies for CHIAMPS

Zensar at a glance

• Ranked amongst India’s top 20 software companies by NASSCOM

• Ranked among top 12 in the latest ‘Global Outsourcing 100’ by International Association of Outsourcing Professionals (IAOP)

• Two exclusive Harvard Case Studies on Zensar Technologies -Zensar: The Future of Vision Communities and Ganesh Natarajan : Leading Innovation and Organizational Change at Zensar

Achievement Highlights

• Zensar profit net up by 35 % at Rs 20.22 cr

• Leading software solution company and BPO services provider

• It posted a net profit of Rs 20.22 crore as against Rs 15.02 crore posted during the same period of the previous year reflecting a growth of 34.6 per cent.

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Consolidated results for the quarter ended June 30, 2012

1. Revenues grew to Rs 544.29 Crore for the quarter ended June 30, 2012; with a YoY growth of 36.5%

2. Net profit after tax was Rs 54.56 Crore for the quarter ended June 30, 2012 with a YoY growth of 101.5%

3. Earnings per share (EPS) was Rs 12.57 for the quarter ended June 30, 2012; with a YoY growth of 101.4%

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Conclusion

• Zensar is a rapidly growing, mid-sized Indian IT services company with a collaborative management philosophy and innovative HR policies. One of its practices, Vision Communities, is an inclusive forum for innovation and strategy formulation.

• Investing and engage In Zensar Technologies by Finance as well as Career point of view is beneficial for long term plans for an individuals.

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