Zensar Technologies Expands to Serbia, Reports Strong Q1 Performance
By ScanX News Team
Zensar Technologies plans to establish a new entity in Serbia, either through a subsidiary or joint venture. The company reported Q1 revenue of $162.00 million, a 4.90% year-over-year growth. US region showed 4.30% growth, while Europe declined 5.80% quarter-over-quarter. Gross margins improved to 30.50%. The company maintains $315.70 million in cash and investment reserves.
*this image is generated using AI for illustrative purposes only.
Zensar Technologies , a leading Experience Engineering and Engagement solutions company, has announced its plans to establish a new entity in Serbia, marking a significant step in its global expansion strategy. This move comes as the company reports robust financial results for the first quarter.
Expansion into Serbia
The Board of Directors of Zensar Technologies has given in-principle approval for setting up a new entity in the Republic of Serbia. This expansion will be executed either directly through a subsidiary of the company or through a joint venture partner. The move is expected to strengthen Zensar's presence in Eastern Europe and tap into Serbia's growing IT talent pool.
Strong Q1 Financial Performance
Alongside its expansion plans, Zensar Technologies has reported impressive financial results for Q1:
- Revenue: The company reported a revenue of $162.00 million, representing a year-over-year growth of 4.90% in reported currency and 3.80% in constant currency.
- Profitability: Gross margins stood at 30.50%, showing a sequential growth of 20 basis points quarter-over-quarter.
- Regional Performance:
- US region: Reported a sequential quarter-over-quarter growth of 4.30% and a year-over-year growth of 4.30% in constant currency.
- Europe region: Experienced a sequential quarter-over-quarter decline of 5.80% but maintained a year-over-year growth of 3.80% in constant currency.
- Africa region: Showed a sequential quarter-over-quarter growth of 1.50% and a year-over-year growth of 0.60% in constant currency.
Sector-wise Performance
Zensar's performance across various sectors showed mixed results:
| Sector | Q-o-Q Revenue Growth | Y-o-Y Growth (Constant Currency) |
|---|---|---|
| Banking and Financial Services | 2.90% | 8.20% |
| Telecommunication, Media & Technology | 5.50% | -5.60% |
| Manufacturing and Consumer Services | -4.10% | 1.10% |
| Healthcare and Life Sciences | 5.20% | 16.50% |
Management Commentary
Manish Tandon, CEO and Managing Director of Zensar, expressed satisfaction with the company's performance, stating, "We delivered a strong quarter with steady revenue growth, driven by growing traction in AI-led deals and impactful solution delivery. With our lowest attrition in two years, I'm proud of our people and the culture we've built."
Pulkit Bhandari, CFO of Zensar, highlighted the company's financial stability, noting, "We have healthy cash & investment reserves of $315.70 million, which underscores our financial stability and provides us with the flexibility to invest in growth opportunities."
Looking Ahead
With its expansion into Serbia and strong financial performance, Zensar Technologies appears well-positioned for continued growth. The company's focus on AI-led deals and its robust cash reserves indicate a strategic approach to navigating the evolving IT services landscape.
As Zensar continues to expand its global footprint and diversify its service offerings, investors and industry observers will be keenly watching how these moves translate into long-term growth and market position.
Historical Stock Returns for Zensar Technologies
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| 0.0% | -1.38% | -5.04% | -5.93% | -1.55% | +403.37% |
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