Zensar Technologies Ltd

- The order book for Q3 FY '23 stood at $130.5 million. - This order book is supported by healthy renewals and multiple wins across verticals. - Historically, the order book mix has been around 45% net new business and 55% renewals. - Currently, reflecting economic outlook, about 35% of the order book is net new business while the balance is existing renewals.

- There is no mention of any current or planned new fundraising through debt or equity. - The company has a strong cash balance of around INR 4800 crores. - Management indicated that they have a structured M&A program and reasonable cash to make acquisitions if needed. - No indication was given that they intend to raise funds through debt or equity in the near term. - Focus currently is on improving margins and sustainable growth rather than raising external capital.

- There is no explicit mention of current or future capex or strategic capital investments in the provided transcript. - Manish Tandon indicated that Zensar has made significant investments in service lines and capabilities recently. - He emphasized the focus is now on deriving returns from existing investments rather than making new ones. - The strategy prioritizes margin improvement and operational efficiencies over indiscriminate growth or fresh investments. - M&A activity remains an option: Zensar has a structured M&A program and sufficient cash (~INR 4800 crores) to make sizable acquisitions if needed. - No specific capex plans were discussed; the near-term focus is on executing strategy and improving margins sustainably.

- Zensar expects medium-term revenue growth through improved client relationships, deepening client relevance, and expanding service lines. - Large deal wins grew 10% year-on-year over the last 12 months; partial furlough rollback in Q4 may positively impact revenue. - Management is cautiously optimistic but acknowledges macroeconomic headwinds (especially in Hi-Tech, Manufacturing, and Consumer Services). - Growth recovery may not be linear; margin improvement prioritized first, with growth turnaround expected after margins stabilize. - Focus on both hunting (new logos) and farming (existing client expansion) to drive sustainable growth. - New order book has about 35% net-new business, implying ongoing new client acquisition. - No specific near-term revenue guidance, but trajectory aims for mid-teen EBITDA margins within 3-4 quarters, indicating controlled margin-driven growth.

- Zensar expects margin improvement to drive near-term results, targeting mid-teen EBITDA margins within the next 3-4 quarters, contingent on stable macroeconomic conditions. - Margin expansion is supported by cost optimization, operational efficiencies, and reducing pass-through revenues; current margins are sustainable near-term. - Revenue growth is expected to recover gradually, with a cautious outlook due to macro headwinds, especially in Hi-Tech, Manufacturing, and Consumer Services verticals. - Banking and Financial Services remain strong growth areas; insurance faces some headwinds but expected to stabilize. - Growth acceleration will come from enhanced client relevance, deepened relationships, and portfolio farming rather than indiscriminate revenue chasing. - New large deal wins are a mix of new and existing businesses, with about 35% from net new orders in the current pipeline. - Overall, operating profits and EPS growth are expected to improve steadily as margins expand and revenue growth stabilizes over medium term.