In a recent interview with CNBC-TV18, Manish Tandon, the Managing Director and CEO of Zensar Technologies, revealed that the company has its sights set on mergers and acquisitions (M&A) opportunities. The company is actively exploring potential deals, with an aim of reviewing at least one opportunity every week, eying for growth and expansion in the technology sector.

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"M&A is definitely on the horizon. We continue to look at deals, at least one deal every week. M&A continues to be an area of interest for us but our M&A focus is not go and buy revenues but to buy real capabilities and skills and invest in the future," he said.

Tandon emphasized that Zensar's M&A strategy prioritises acquiring capabilities and skills rather than merely chasing revenue figures.

Tandon acknowledged that the market remains challenging, but he pointed out that Zensar Technologies has performed well despite the tough conditions. The company's stock price has benefited from margin improvements achieved over the last two to three quarters.

"The market remains tough. The stock price has more than doubled. I think the stock price has done well primarily because of the margin improvements that we have been able to achieve over the last two-three quarters," he said.

Looking ahead, Zensar aims to sustain its mid-teen margin. Any excess margin generated will be reinvested back into the business - in revenue growth and sales initiatives.

"We are fairly confident that we will be able to maintain margins in the mid-teen ranges. Anything above that, we will invest in growth of the business," he said.

Zensar Technologies, headquartered in Pune, India, is a technology solutions company known for its engineering expertise. As part of the USD 4.4 billion RPG Group, Zensar serves a diverse portfolio of over 145 global clients.

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First Published:Sept 6, 2023 4:40 PM IST