Chairman's Remarks

Chairman's Remarks

 Back to Investors

Dear Analyst,

It is my pleasure to highlight the business performance of the Sasken Group for the third quarter of FY 2018 - 19, ending December 31st, 2018.

We must point out that certain statements made here or those we make subsequently in response to your queries concerning our future growth prospects are forward-looking statements. Please read the Safe Harbor clause in the second slide of of our presentation for full details

Let me begin by walking you through our financials for Q3 Fiscal 2019. In Q3 FY 2018-19, the consolidated revenues for the Sasken Group was up by 7.4% over the previous quarter to Rs.121.41 crores. Consolidated Earnings before Interest, Depreciation, Taxes and Amortization cost for Q3 fiscal ‘19 were Rs.12.65 crores, decline of 5.0% sequentially. Consolidated PAT for Q3 fiscal ‘19 was at Rs.18.07 crores, up by 7.0% over the previous quarter. PAT margins for Q3 fiscal ’19 were 14.9%. Consolidated earnings per share, was ₹10.58 for the quarter. Cash and cash equivalents were approximately Rs.519.08 crores as of December 31st, 2018.

We are pleased to bring to your notice the commencement of our state-of-the-art Automotive Centre of Excellence (CoE) in Detroit, USA. The Sasken Detroit Development Centre (DDC) will help us leverage our decade-long experience in delivering software solutions to automotive customers. The DDC will be instrumental in servicing our marquee customers in the region through our nearshore presence. We will anchor key development projects at DDC while continuing to provide offshore delivery excellence.

As mentioned in the previous quarter, we continue to work with the aforementioned customer to resolve issues pertaining to design overruns. We believe that we are a strategic partner to this customer and that our mutual relationship will flourish.

We have made progress in the automotive electronics and smart devices arena and have signed multiple deals with customers across several geographies. We remain optimistic about the growth prospects in these emerging programs as well as existing ones.

Zinnov, an independent research, consulting and advisory company, has ranked Sasken as being an established and expansive player in providing Engineering Research & Development Services in their 2018 industry rankings. More specifically, your Company is rated in the leadership zone in both automotive and semiconductor segments and in the execution zone in consumer electronics and industrial automation areas.

Everest Group, a consulting and research firm focused on strategic IT, business services, and sourcing has recognized Sasken as an Aspirant in the Digital Services arena in their latest report titled – Digital Services PEAK Matrix™ assessment and Market Trends 2019.

The head count as of December 31st, 2018 stood at 1,780. Attrition for the trailing twelve months stood at 26.65%. We continue to nurture and develop our talent pool through multiple learning and development initiatives.

The total number of active customers stood at 98 and we added 10 customers this quarter.

My team and I are appreciative of the support and confidence you have reposed in us and remain committed to acting in the best interest of all stakeholders.

 

Rajiv C Mody
Chairman, Managing Director, and CEO
Sasken Technologies Limited