Case Study of Zensar Technologies,Pune (RPG Group) for
Managerial economics/ MBA Part I
By
Renzil D’cruz
About.me/renzilde
Drop me message @ renzilde@gmail.com
Managerial Economics case study Zensar Technologies
1. Financial Study: Zensar Technologies
For Managerial Economics under Guidance of Dr. P.A.Johnson
By
Renzil D’cruz
About.me/renzilde
Drop me message @ renzilde@gmail.com
2. About Zensar Technologies
• Our Mission: Leveraging technology and processes to help customers
attain their goals.
• Our Vision :Transformation partners to global corporations.
• Zensar Technologies (Parent Company RPG Group) provides Services
such as Application Portfolio Management(PM), Enterprise Application Service,
Innovative Technology Services(IT), Business process outsourcing (BPO) and
optimisation, First Time Outsourcing
• 3,000 crore (US$567 million) company have Total associate count as of
June 30th was 7293 including 315 associates
• Dr.Ganesh Natarajan, Vice Chairman & CEO,Zensar Technologies.
• Development Centres in Pune(HQ) and Hyderabad in India and
Gdansk in Poland and customer base in 18 Countries.
8. current ratio
0
0.5
1
1.5
2
2.5
2008 2009 2010 2011 2012
current ratios
• current ratio is also called as
working capital as well as
bankers ratio it is given as
current assets divided by
current liabilities.
• This ratio indicates two
information
Working capital position
Short term solvency position
9. current ratio
0
0.5
1
1.5
2
2.5
2008 2009 2010 2011 2012
current ratios
• This ratio shows capacity of the
company to pay its current liabilities
• The standard ratio is 2;1 which
indicates that for every 1 rupee liability
there should be 2 rupees of current
assets
• If the ratio is low it indicates
inadequate working capital and
unsatisfactory short term solvency
position .
• If the ratio is very high it indicates
inefficient utilisation of shareholders
funds
10. Net Profit Ratio
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
2008 2009 2010 2011 2012
NET PROFIT RATIO
• Net Profit Ratio : It is given
by net profit divided by
sales.
• This ratio shows
relationship between net
profit and net sales.
• This ratios shows
profitability of the business.
• A higher ratio indicates
higher profit and vice versa.
11. Earning per Share(EPS)
• Earning per Share(EPS) :
Net profit after tax-
preference dividend/no of
equity shares. This means
earning made during the
year on each equity shares
0
5
10
15
20
25
30
35
40
45
2008 2009 2010 2011 2012
EARNING PER SHARE
12. Debt Equity ratio
0
0.1
0.2
0.3
0.4
0.5
0.6
2008 2009 2010 2011 2012
debt equity ratios
• Debt Equity ratio it is given by debt
divided by equity.
• Debt =borrowed funds
• Equity=proprietors funds
• this ratios shows relationship between
own funds and borrowed funds
• a standard ratio is 2:1 which indicates
that for every one rupees of own funds
2 rupees can be borrowed
• if the ratio is very high it indicates
excessive borrowings and repayment
problems in the future
• if the ratio is very low it indicates under
utilisation of borrowings capacity
13. Debtors Turnover Ratio
0
1
2
3
4
5
6
2008 2009 2010 2011 2012
debtors turnover ratios
• Debtors Turnover Ratio:
this ratios means no of
times the debtors are
turned over. i.e goods sold
and money collected from
debtors. A higher ratio
indicates quick sales and
quick collection from the
debtors.
14. Stock for past 5 yrs ZENSAR TECHNOLOGIES LTD. 504067
Year Open High Low Close
No. of
Shares
No. of
Trades
Total Turnover
Deliverab
le
Quantity
% Deli.
Qty to
Traded
Qty
H-L
(Spread*)
C-O
(Spread*)
2008 192.00 203.70 71.00 78.35 32,07,206 50,998 43,42,47,053 19,43,515 60.60 132.70 -113.65
2009 81.00 351.00 64.65 324.10 55,35,846 83,647 1,16,74,84,788 31,09,765 56.18 286.35 243.10
2010 326.00 365.90 151.15 166.65 64,31,592 1,40,373 1,84,34,12,495 25,49,743 39.64 214.75 -159.35
2011 167.00 193.30 113.15 143.30 18,94,760 60,699 31,00,39,077 9,79,811 51.71 80.15 -23.70
2012 143.25 302.45 133.55 296.85 48,88,293 1,63,593 1,07,25,96,009 16,48,760 33.73 168.90 153.60
* Spread (All Prices in Rs. )
H-L : High-Low
C-O : Close-Open
22. Partnerships and Alliances
• Zensar and SOA Software announce Global Strategic
Partnership in 2007
• IBM - Zensar has entered into a partnership with IBM
Partner World to leverage the growing E-business market
• Zensar Technologies is a Microsoft Gold Certified Partner
• Zensar is a channel and service partner of SAP
• Zensar technologies is a worldwide recognized Oracle
partner
23. Subsidiaries
• Zensar Technologies Inc.
• Zensar Technologies (Singapore) Pte Limited
• Zensar Technologies (Shanghai) Co. Limited
• Zensar Technologies (UK) Limited
• Zensar Advanced Technologies Limited
• Subsidaries of Zensar Technologies Inc. - PSI Holding
Group Inc.
24. Awards
• Zensar Technologies felicitated with Emerging Business Applications Award for 2009 at the Oracle UK Partner
Awards in London.
• Third consecutive CNBC award for Outstanding exporter of the year 2009 in IT, ITES & Electronics.[3][4][5]
• Oracle UK Partner Award
• Zensar felicitated by Special Jury Commendation Award by the then President of India, Dr. A.P.J. Kalam for
outstanding commitment and contribution to Nation Building through CSR efforts.
• Zensar named as the Trailblazer of the Year 2006 by the NHRD for Best HR Practices.
• Zensar awarded the ‘Corporate Governance Business for Social Responsibility Award’ for 2006.
• Acquisitions and Joint Ventures
• Acquired ThoughDigital for US $ 24.9 million in 2007.
• Joint venture with a Tokyo Based EZA to form Zensar Advanced Technologies.
• Acquired Hyderabad based OBT global in 2005.
• Acquired Akibia Inc. worth $100 Million.
27. Target for growth
• New Markets for 2012 onwards: CHina, India, Middle East, SAARC countries
Market Dynamics
• Large and young populations and vast resource bases
• Transitional societies making drastic economic and political reforms
• Among the world’s fastest growing economies
• Transition from dependency to global interdependency with two way trade and capital flows
Steps to Grow
• New and growing domestic markets
• New sources of talent
• High IT Adoption and investment in Infrastructure
• Strong Govt promotion and support
28. Steps towards transformation
• Inaugurated ninth Global Delivery Centre in Bangalore in June 2012
• New strategies to develop, grow and retain talent : I Zen, Zen Points, Excellence Initiatives
• on-line sales-force support and Improve Processes
• on-line customer support and e-procurement
• Reduce Cost of services in BPO sector
• Redefine Processes and vendor-managed inventory
• strategic sourcing initiatives and sell product through e-channels
• Redefine Business Models
• outsource production
• leverage intangible assets
• intranet application for employee self-service
• Work from Home initiative launched
31. Zensar at a glance
• Ranked amongst India’s top 20 software companies by
NASSCOM
• Ranked among top 12 in the latest ‘Global Outsourcing 100’
by International Association of Outsourcing Professionals
(IAOP)
• Two exclusive Harvard Case Studies on Zensar Technologies
-Zensar: The Future of Vision Communities and Ganesh
Natarajan : Leading Innovation and Organizational Change
at Zensar
32. Achievement Highlights
• Zensar profit net up by 35 % at Rs 20.22 cr
• Leading software solution company and BPO services
provider
• It posted a net profit of Rs 20.22 crore as against Rs 15.02
crore posted during the same period of the previous year
reflecting a growth of 34.6 per cent.
33. Consolidated results for the quarter ended June 30, 2012
1. Revenues grew to Rs 544.29 Crore for the quarter ended
June 30, 2012; with a YoY growth of 36.5%
2. Net profit after tax was Rs 54.56 Crore for the quarter
ended June 30, 2012 with a YoY growth of 101.5%
3. Earnings per share (EPS) was Rs 12.57 for the quarter
ended June 30, 2012; with a YoY growth of 101.4%
34. Conclusion
• Zensar is a rapidly growing, mid-sized Indian IT services
company with a collaborative management philosophy and
innovative HR policies. One of its practices, Vision
Communities, is an inclusive forum for innovation and
strategy formulation.
• Investing and engage In Zensar Technologies by Finance as
well as Career point of view is beneficial for long term plans
for an individuals.