Zensar Technologies witnessed a 5% drop in its stock value, falling to Rs 519 on BSE, after disappointing Q2 results. The IT service company's revenue only grew by 0.5% YoY and 1.1% QoQ to Rs 1,240 crore, mainly due to weaker performance in the hi-tech and manufacturing sectors.
However, the company recorded a substantial 206.3% YoY and 11.3% QoQ net profit growth, reaching Rs 173.9 crore in Q2FY24, driven by effective cost management. While banking and manufacturing sectors showed growth, hi-tech and healthcare experienced declines in constant currency terms. The EBITDA margins contracted slightly due to wage hikes, and the company anticipates ongoing challenges in certain verticals.