Zensar Technologies Limited announced unaudited standalone and consolidated earnings results for the third quarter and nine months ended December 31, 2017. For the quarter, on standalone basis, the company reported revenue from operations of INR 3,184.6 million compared to INR 3,245.7 million a year ago. Total income was INR 3,244.0 million compared to INR 3,396.1 million a year ago. Profit before tax was INR 519.10 million compared to INR 884.7 million a year ago. Net profit for the period was INR 383.0 million compared to INR 634.3 million a year ago. Diluted EPS was INR 8.43 compared to INR 13.94 a year ago.

For the nine months, on standalone basis, the company reported revenue from operations of INR 9,446.3 million compared to INR 9,747.3 million a year ago. Total income was INR 9,854.8 million compared to INR 10,071.6 million a year ago. Profit before tax was INR 1,796.1 million compared to INR 2,252.3 million a year ago. Net profit for the period was INR 1,348.8 million compared to INR 1,603.4 million a year ago. Diluted EPS was INR 29.72 compared to INR 35.30 a year ago.

For the quarter, on consolidated basis, the company reported revenue from operations of INR 7,937.6 million compared to INR 7,865.4 million a year ago. Total income was INR 8,002.3 million compared to INR 8,065.8 million a year ago. Profit before tax was INR 8,986 million compared to INR 1,147.8 million a year ago. Net profit for the period was INR 601.7 million compared to INR 801.5 million a year ago. Diluted EPS was INR 813.00 compared to INR 17.67 a year ago. The EBITDA for the quarter grew by 17.8% from USD 14.0 million to USD 16.5 million. The gross margin for the quarter improved by 134 basis points over the previous quarter despite of lesser working days in the U.S. Company had been able to achieve this through business efficiencies, driven by Return on Digital platform internally deployed in Zensar and growth in digital business. The effective tax rate for the quarter is at 33% as against 26.2% in the previous quarter. This is primarily due to the increase in profits in company U.S. business and quarter 2 included a onetime gain in India taxes, which is not recurring.

For the nine months, on consolidated basis, the company reported revenue from operations of INR 22,930.1 million compared to INR 23,122.8 million a year ago. Total income was INR 23,406.8 million compared to INR 23,591.4 million a year ago. Profit before tax was INR 2,475.7 million compared to INR 3,288.9 million a year ago. Net profit for the period was INR 1,724.5 million compared to INR 2,276.3 million a year ago. Diluted EPS was INR 37.21 compared to INR 49.66 a year ago.

The company expects its effective tax rate to come down in the subsequent quarters. The effective tax rate for the third quarter is at 33% as against 26.2% in the previous quarter.