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

1. Case Study: Zensar Technologies
For
Managerial Economics
By
Rashmika Kangrana
Renzil D’cruz
Rishabh Mehata
Rohit Jumale
Rohit Tiwari
Under Guidance of
Dr. P.A.Johnson

2. Index

3. Zensar Technologies
Our Mission
Leveraging technology and processes to help customers attain their goals.
Our Vision
Transformation partners to global corporations.
About Zensar
Zensar Technologies is a global information technology services and business process
outsourcer headquartered in Pune, India. It is a software wing of RPG Group, and offers a range of
integrated information technology (IT) and BPO products and services to Fortune 500 clients.
Zensar has a marketing presence in the US, Europe, Asia Pacific and Australia. The company has operations
and a customer base spanning across 18 countries including software development centres at Pune and
Hyderabad in India and Gdansk in Poland.
Zensar service areas include Application Support and Development, Application portfolio management,
Testing, Enterprise Collaboration and Content Management, Enterprise Application Integration, Business
Intelligence & Data Warehousing. Zensar's core competency is Application Modernization, using Zensar's
SBP framework.
Zensar is the world's first enterprise-wide SEI CMM Level 5 Company with activity that spans across
Utilities, Retail and Distribution, Banking, Financial Services and Insurance, Manufacturing and
Telecommunications.
Zensar Technologies (Parent Company RPG Group) provides Services such as Application Portfolio
Management, Enterprise Application Service, Innovative Technology Services, Business process
outsourcing and optimisation, First Time Outsourcing and it is 3,000 crore (US$567 million) company
having more than 7000 employees dated April 2012.

4. Achievement Highlights
Zensar profit net up by 35 % at Rs 20.22 cr - Leading software solution company and BPO services provider
Zensar Technologies Ltd has reported a good year-on-year profit growth for the quarter ended December 31.
It posted a y-o-y 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.
Key People
Dr.Ganesh Natarajan, Vice Chairman & CEO,Zensar Technologies.
Vivek Gupta, Chief Executive, IBS and Executive Chairman, Akibia
Nitin Parab, Chief Executive and Global Head, Enterprise Transformation Services (ETS)
Harish Gala, Global Head, Enterprise Applications (Oracle and SAP)
Yogesh Patgaonkar, Global Head, Human Resources
Sanjay Marathe, Head, Strategic Services Unit and CTO
Ajay Bhandari, Chief Corporate Development Officer
S. Balasubramaniam, CFO
Scrip ID : ZENSAR
Scrip Code : 504067 (BSE)
Industry : IT Consulting & Software
Company :ZENSAR TECHNOLOGIES LTD. 504067
Period: Year 2008 to Year 2012 (All Prices in )
Year Open High Low Close
No. of
Shares
No. of
Trades
Total
Turnover
Deliverable
Quantity
% Deli.
Qty to
Traded
Qty
* Spread
H-L C-O
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
H-L : High-Low
C-O : Close-Open

5. Price Movement
Index Comparison
Performance Chart
Ownership Pattern

6. Annual Trends
(in Cr.) 2011 - 12 2010 - 11 2009 - 10 2008 - 09 2007 - 08
Income Statement(View in (Million))
Revenue 712.75 584.52 502.32 428.00 335.87
Other Income 27.91 7.31 2.91 2.62 11.91
Total Income 740.66 591.83 505.23 430.62 347.78
Expenditure -577.36 -478.85 -393.18 -341.11 -282.36
Interest -1.03 -0.86 -0.55 -0.54 -1.12
PBDT 162.27 112.12 111.50 88.97 64.30
depreciation -25.05 -25.88 -24.92 -22.29 -15.64
PBT 137.22 86.24 86.58 66.68 48.66
Tax -42.67 2.24 -2.43 -6.21 -3.29
Net Profit 94.55 88.48 84.15 60.47 45.37
Equity 43.41 43.30 21.58 23.97 23.96
Reserves 374.01 341.27 272.34 230.46 181.05
EPS 21.79 20.47 35.77 25.23 18.95
CEPS 27.55 26.41 50.54 34.53 --
OPM % 22.91 19.33 22.31 20.91 19.48
NPM % 13.27 15.14 16.75 14.13 13.51
Detailed Detailed Detailed Detailed Detailed
Consolidated Consolidated Consolidated Consolidated Consolidated
Type Audited
Date Begin 01-Apr-11
Date End 31-Mar-12
Description Amount (Rs. million)
Net Sales / Income from Operations 7,127.50
Net Sales / Income from Operations 7,001.70
Other Operating Income 125.80
Expenditure -6,024.10
Other Expenditure -1,262.00
Employee Benefit Expenses -4,277.30
Depreciation & amortization expense -250.50
Purchase of Stock in Trade -234.30
Profit from Operations before Other Income, Interest and Exceptional Items 1,103.40
Other Income 279.10
Profit before Interest and Exceptional Items 1,382.50

7. Interest -10.30
Finance Costs -10.30
Profit after Interest but before Exceptional Items 1,372.20
Exceptional Items 0.00
Profit (+)/ Loss (-) from Ordinary Activities before Tax 1,372.20
Tax -426.70
Net Profit (+)/ Loss (-) from Ordinary Activities after Tax 945.50
Extraordinary Items 0.00
Net Profit 945.50
Equity Capital 434.10
Face Value (in Rs) 10.00
Reserves 3,740.10
EPS before Extraordinary items (in Rs)
EPS after Extraordinary items (in Rs)
Basic EPS after Extraordinary items 21.79
Diluted EPS after Extraordinary items 21.55
Number of Public Shareholding 2,25,50,970.00
Percentage of Public Shareholding 51.95
Promoters and Promoter Group Shareholding
Pledged / Encumbered
Number of Shares 0.00
Percentage of Shares (as a % of the total shareholding of promoter and promoter
group)
0.00
Percentage of Shares (as a% of the total share capital of the company) 0.00
Non-encumbered
Number of Shares 2,08,58,804.00
Percentage of Shares (as a% of the total shareholding of promoter & prom
group)
100.00
Percentage of Shares (as a % of the total share capital of the company) 48.05
Notes

8. Consistent All round Grouth

9. Key Milestone
Consolidate number for Q4

10. Consolidate Performance FY 2011
Geographical Speared of revenue
Service Contribution to revenue

13. M&R industry overview among top spenders in IT

14. Sub Vertical Specific Strategy
Service Specific strategy

15. Technology specific strategy

16. Sub vertical specific strategy

17. Service specific strategy
Technology Specific strategy

18. 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
1. This ratio shows capacity of the company to pay its current liabilities
2. The standard ratio is 2;1 which indicates that for every 1 rupee liability there should be 2
rupees of current assets
3. If the ratio is low it indicates inadequate working capital and unsatisfactory short term
solvency position .
4. If the ratio is very high it indicates inefficient utilisation of shareholders funds
Debt Equity ratio it is given by debt divided by equity.
• Debt =borrowed funds
• Equity=proprietors funds
1. this ratios shows relationship between own funds and borrowed funds
2. a standard ratio is 2:1 which indicates that for every one rupees of own funds 2 rupees can
be borrowed
3. if the ratio is very high it indicates excessive borrowings and repayment problems in the
future
4. if the ratio is very low it indicates under utilisation of borrowings capacity
0
0.5
1
1.5
2
2.5
2008 2009 2010 2011 2012
current ratios

19. Debtors Turnover Ratio: this ratios means no of times the debtors are turned overi.e goods sold and
money collected from debtors. A higher ratio indicates quick sales and quick collection from the debtors.
0
0.1
0.2
0.3
0.4
0.5
0.6
2008 2009 2010 2011 2012
debt equity ratios
0
1
2
3
4
5
6
2008 2009 2010 2011 2012
debtors turnover ratios

20. 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
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.
0
5
10
15
20
25
30
35
40
45
2008 2009 2010 2011 2012
EARNING PER SHARE
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
2008 2009 2010 2011 2012
NET PROFIT RATIO

21. 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.
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
The Markets :
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
Opportunities
- New and growing domestic markets
- New sources of talent
- High IT Adoption and investment in Infrastructure
- Strong Govt promotion and support
Expectations
– Accelerate growth of IM business in US and Europe
– Expand presence in current accounts
– Implement seamless multi-shore delivery model
– Streamline process to respond to larger opportunities
Expectations
• Accelerate growth of IM business outside of US and Europe
• Implement go-to-market strategy in core geographies
• Gain acceptance in market as Global IM solutions provider
Develop Solutions for Target Vertical markets
• Develop IM solutions to complement Zensar Vertical strategy
• Build domain expertise to market & deliver these solutions

22. • Team with Vertical Heads to integrate the IM solutions into there
Messaging
Evolving as end to end IT infrastructure
outsourcing company
–Capable to offer a single SLA to CIO for
the entire DC operation
• Which includes Networks, Systems, Applications,
Compliance, and Risk
Strategies for CHIMPS
Application Management

23. Key us Metrics

24. Strengths
Key Focus Metrics
• Employee Engagement
• Retention of critical talent
• Employee satisfaction
Broad basing the organization and scaling up people capabilities
• Building and retaining leadership
• Strengthening the quality of middle managers
• Enhancing Employee Engagement
Weakness
Company Focus
• Customer Focused Business Processes
• Best in Class Performance Measures
• Right People for the Right Roles
• Highest Quality at Lowest Prices
• Best in Class Information Technology
• Knowledge Management as a differentiator!
Threats
Top 5 Competitor:
Cognizant
Tata Constancy Services
IBM (Daksh)
iGATE Patni
Infosys
Using Strengths Steps to get explore opportunities
Steps Taken for transformation
Reduce Cost
intranet application for employee self-service
on-line sales-force support
Improve Processes
on-line customer support
e-procurement
Redefine Processes
vendor-managed inventory
strategic sourcing initiatives
sell product through e-channels
Redefine Business Models
sell (rather than give away) service
outsource production
Create Markets
become a market maker/e-channel / infomediary
leverage intangible assets

25. Bibliography
Books :
Management Accounts: Anapure
Website:
Zensar.com
http://www.zensar.com/about-us/corporate-profile
http://www.zensar.com/zensar-media/inthenews/399-zensar-profit
rpggroup.com
http://www.rpggroup.com/
Wikipedia.org
http://en.wikipedia.org/wiki/Zensar_Technologies
thehindubusinessline.in
http://www.thehindubusinessline.in/2005/12/14/stories/2005121402250400.htm
http://www.thehindubusinessline.com/todays-paper/tp-info-tech/article1048574.ece?ref=archive
siliconindia.com
http://www.siliconindia.com/shownews/Zensar_acquires_OBT_Global-nid-30229-cid-2.html
bseindia.com
http://beta.bseindia.com/bseplus/StockReach/StockQuote/Equity/Zensar%20Technologies%20Ltd/ZENSAR
/504067/ITConsultingSoftware
indiatimes.com
http://timesofindia.indiatimes.com/tech/techhome/5880659.cms
equitybulls.com/
http://www.equitybulls.com/admin/news2006/news_det.asp?id=83876
icicidirect.com
cnbc.com