Zensar's FY05 net up 43%

PUNE: Zensar Technologies has reported a 43 percent jump in operating profits on a revenue growth of 29 percent for the year ended March 31, 2005. The company reported a consolidated net profit of Rs.39.1 crore for the year ended March 31, 2005 as compared to the consolidated net profit of Rs 12.6 crore for the previous year. The revenues for the year showed an increase of 29 percent at Rs 345 crore as compared to Rs 267 crore in the same period last year.






According to Zensar deputy CMD Ganesh Natarajan, the company's Solution BluePrint (SBP) framework, has directly contributed over 33 percent to the new business in the current year.





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 US 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.





The idea, according to Zensar CTO Dilip Ittyera, is to move from scratch and paint and get them to add value to projects. "The concept is to automate programming and work with universities to support the code factory," he added.





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. The first year of BPO business saw losses to the tune of Rs 8.9 crore. According to Natarajan, the BPO business would break even by the last quarter of next year. "We have a good order book position," he added.