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 fourth quarter ended 31st March 2021.

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 the Fourth Quarter Fiscal 2021. In the fourth quarter of Fiscal ‘21 the consolidated revenues for the Sasken Group declined by 2.9% over the previous quarter to ₹. 110.61 crores. Consolidated Earnings before Interest and Taxes for the fourth quarter fiscal ‘21 were ₹. 33.84 crores, an increase of 3.5% sequentially. Consolidated PAT for Q4 fiscal ‘21 was at ₹. 29.09 crores, down by 14.2% over the previous quarter. PAT margins for the quarter were 26.3%. The consolidated earnings per share, was ₹19.37 for the quarter.

For the financial year 2021, the consolidated revenues were at ₹. 444.84 crores, down by 9.6% over the fiscal 2020. EBIT margins for fiscal ’21 were ₹. 120.34 up by 56.5% over the fiscal 2020. PAT margin for the full year were at 25.7% up by 45.3% over the fiscal 2020. Consolidated EPS was ₹ 76.26 for the full fiscal year 2021. Cash and cash equivalents were approximately ₹466.1 crores as of March 31, 2021.

People
As of 31st March 2021, the headcount for the Sasken group stood at 1,395, and the attrition for the last twelve months stood at 21.4%. Utilization for the quarter averaged 79.6%

Customers
We have successfully added 3 new customers during the quarter taking the total number of active customers to 72.

Business Highlights
In this year, we faced the daunting prospect of the COVID-19 pandemic. Our primary focus has been to maintain business continuity and safeguard the interests all our stakeholders. As indicated in the previous quarter we are beginning to see a return in customer confidence across verticals we serve.

We are buoyed by our ability to sign longer term contract especially in enterprise devices for service targeting products running on the Android platform. In the industrial segment we have expanded our service footprint and are partnering with a global leader, who provides in-building security solutions. In the semiconductors space, we address the testing & validation needs of semiconductor platforms running on the Windows™ & other OS platforms. Further, we have leveraged our expertise in 5G to help semiconductor vendors address 5G/CV2X based telematics application. In the communication segment, we have made reasonable progress with our engagements in the Open Radio Access Network space for both 4G/5G networks. In the digital space we have been able to offer a ‘sensor to sensemaking’ integrated solution that helps automate the testing of railroad networks. We continue our pursuit to integrate digital as a core component of product engineering solutions.

The developments in the macro environment due to the second wave of Covid-19 have resulted in certain amount of uncertainty. We are monitoring situation closely as before and we will strive to take all possible steps to mitigate any adverse impact to our business.

Final Dividend

The Board of Directors has recommended a final dividend of Rs.15.00 per equity share for the year ended March 31, 2021. The payment is subject to approval of shareholders in the ensuing Annual General Meeting of the Company. Once approved, the cumulative dividend for the year will amount to Rs.25.00 per equity share (including interim dividend payment of Rs.10.00 declared on October 21, 2020).

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