July 25, 2009 12:09:18 am
City-based Zensar Technologies,an IT and BPO services provider,has announced a stock buyback plan with a maximum price of Rs 165 crore and maximum outlay of Rs 40 crore. The company also said it is preparing for a strategic acquisition of Rs 100 crore,a move aimed at doubling its revenues in the next five years.
Addressing reporters here on Friday,Ganesh Natarajan,vice-chairman and managing director,Zensar,said the company is considering some key segments that would be executed by the year-end. It will be either from infrastructure management,information security or knowledge process outsourcing. We will be asking a search agency to find the suitable company and an eminent banker will appointed to carry out the task, he said.
The company reported revenue of Rs 229.23 crore in the first quarter of the fiscal,a growth of nine per cent over the year-ago period. The net income was Rs 29.74 crore,a growth of 20 per cent quarter-on-quarter and 29 per cent sequentially. The earnings per share for the quarter stood at Rs 12.41 this quarter.
Zensar added 16 new customers to its portfolio and recently stuck a deal worth Rs 80 crore with a prominent insurance company in the US. Out of the total business US contributed 59 per cent and 25 per cent came form Asia Pacafic,said Natarajan.
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New services introduced in the last year by Zensar continue to bring in new business for the company,he said,especially in the areas of package implementation,testing,infrastructure management and knowledge process outsourcing. Apart from the significant success in insurance,other key wins include an international financial services company in the UK and a total solutions company providing packaged application to the financial services and government sector in South Africa. The package implementation deal includes a leading retailer in the Middle East,a manufacturer of safety and restraint systems for automobiles and a US-based communications infrastructure major, he said.
Vivek Gupta,executive vice president,Zensar,who was named chief executive of India operations,said there was immense scope for impact outsourcing and many clients were interested,particularly due to the economic slowdown.
The offering will help clients formulate and implement strategies to achieve maximum value for their IT investments through optimisation across the organisation. The service is being simultaneously offered in the US,Europe,Japan and India and the company expects to garner new business worth over $ 40 million in the next ten months, Gupta said. In India,Zensar will focus on e-governance,healthcare and education,which are expected to rope in business worth Rs 100 crore,he added.
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