Chairman's Remarks

Chairman's Remarks

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Dear Analyst,

It is my pleasure to highlight the business performance of the Sasken Group for the financial year (FY 2018-19), ending 31st March 2019.

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 our presentation for full details

Let me begin by walking you through our financials for Fiscal 2019. In Fiscal FY 2019, the consolidated revenues for the Sasken Group remained almost flat over the previous fiscal and stood at ₹.504.31 crores. Consolidated Earnings before Interest, Depreciation, Taxes and Amortization cost for fiscal ‘19 were ₹.71.13 crores, a growth of 2.4% sequentially. Consolidated PAT for fiscal ‘19 was at ₹.90.42 crores, up 9.7 % over the previous fiscal. PAT margins for this fiscal were 17.9%, and EBITDA margin was at 14.1%. Consolidated earnings per share, were ₹.52.92 for the full year. Cash and cash equivalents were approximately ₹.505.78 crores as of March 31st, 2019. 

I will now provide the key highlights for our business in the current quarter and full financial year FY 19

As indicated in previous quarter we had overruns in our fixed price programs. We have since been able to resolve them and our customer has compensated us for the additional work we have executed. Our customer continues to value us as a strategic partner.  More specifically of the 11.6% growth in revenue terms 7.4% is attributable to  the additional revenue from this customer while the balance 4% is from organic growth. In terms of EBITDA margin, a growth of 3.8% is consequent to this additional revenue. EBITDA margin without this one time impact would be 14.1%.

On a YTD basis, the business has grown by focusing on strategic accounts, most of which have shown annual growth. As part of our business transformation, we have defocused customer program delivery via the resource augmentation route. Therefore, overall revenue in Rupees terms has remained flat due to this netting off. However, about 60% of our business now comes from ownership-based programs, which is a sharp rise from the previous period and bodes well for us.  

We have been able to penetrate newer accounts across all areas of our segmental focus. We continue to grow by leveraging our strengths providing a full-service bouquet addressing the needs of silicon platform vendors building products based on the Android OS, targeting the consumer and industrial segments.

Additionally, our solutions for managing modems powering smart devices across multiple wireless standards & integrated cockpit communications for the automotive sectors have also seen good customer traction.

On the digital front, our solutions for IoT, platform engineering & mobility layered with analytics are making good progress serving the industrial and transportation segments.

One of our customers has signaled their exit from the 5G modem space. We are in touch with them to assess the possible impact of their decision on our ongoing programs in 4G area.  

Final Dividend

The Board of Directors has recommended a final dividend of ₹.7.50 per equity share of Rs.10 each for the year ended March 31, 2019. This is subject to the approval of shareholders and if so approved, the total dividend for the year will amount to ₹.12.50 per equity share including interim dividend payments of Rs.5.00 per share paid on 23/10/18. We thus maintain the uninterrupted record of paying dividend since our inception. 

We thank you for your interest in Sasken and your continued support. My team and I are committed to doing our best to serve the interests of all our stakeholders.

 

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