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 first quarter of FY 2019 -20, ending June 30, 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 Q1 Fiscal 2020. In Q1 FY 2019-20, the consolidated revenues for the Sasken Group were down over the previous quarter to ₹134.65 crores. Consolidated Earnings before Interest, Depreciation, Taxes and Amortization cost for Q1 fiscal ‘20 were ₹24.64 crores, an increase of .8% sequentially. Consolidated PAT for Q1 fiscal ‘20 was at ₹ 23.18 crores, down by 15.6% over the previous quarter. PAT margins for Q1 fiscal ’20 were 17.2%. Consolidated earnings per share, was ₹13.60 for the quarter. Cash and cash equivalents were approximately ₹533.2 crores as of June 30, 2019.

People

We pride ourselves as being a knowledge company with a talent pool among the best in the industry. We constantly nurture our talent pool through multiple learning and other interventions to ensure that they are familiar with and deliver solutions using cutting edge technology. In the current quarter we have completed the compensation review process and have communicated the same to employees. Our compensation philosophy as before centers on the pillars of external equity & internal parity and is geared to reward performance, and technical proficiency.

On the people front, the headcount for the Sasken Group stood at 1802 as of June 30, 2019. The attrition currently stands at 23.99 % for trailing twelve months. We continue to take all actions under our control to attract, retain and nurture our talent pool.

Utilization for the quarter averaged 73.1 %

Customers

We have successfully added 10 new customers during the quarter taking the total number of active customers to 98.

We continue to remain focused in serving various opportunities in the product engineering and digital services arena. Our core focus is to improve the quality of our customer engagements, so as to make them more scalable and repeatable. While we have embarked on this journey in full earnest, we believe that improving the quality of our business will take a considerable amount of time. We anticipate headwinds and tough times ahead, and are confident of putting in place measures including prudent cost management to tide over the period of transformation.

As signalled in the previous quarter, the strategic business shift of one of our customers has resulted in their exit from the 5G modem space and has impacted our business with them.

My team and I are grateful for the trust reposed in us and wish to assure you of our commitment to do our best for all stakeholders.
 

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