Dear Analyst,
It is my pleasure to highlight the business performance of the Sasken Group for the fourth quarter of FY 2021-22, ending March 31, 2022.
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
Quarter-on -Quarter (Sequential)
Let me begin by walking you through our financials for Q4 Fiscal 2022. In Q4 FY 2021-22, the consolidated revenues for the Sasken Group went up by 2.7% over the previous quarter to ₹ 109.18 crores. Consolidated Earnings before Interest and Taxes for Q4 fiscal ’22 were ₹ 29.36 crores, a decrease of 1.6% sequentially. Consolidated PAT for Q4 fiscal ‘22 was at ₹ 26.88 crores, down by 10.6% over the previous quarter. PAT margin for Q4 fiscal ’22 was at 24.6%. Consolidated earnings per share, was ₹ 17.87 for the quarter. Cash and cash equivalents were approximately ₹ 556 crores as of March 31,2022.
Quarter-on -Quarter (Comparable quarter of the previous year)
In Q4 FY 2021-22, the consolidated revenues for the Sasken Group went down by 1.3% QoQ to ₹ 109.18 crores. Consolidated Earnings before Interest and Taxes for Q4 fiscal ’22 were ₹ 29.36 crores, a decrease of 13.2% QoQ. Consolidated PAT for Q4 fiscal ‘22 was at ₹ 26.88 crores, down by 7.6% QoQ.
Year-on-Year (Comparable to previous year)
For the financial year FY 2021-22, the consolidated revenues were at ₹ 433.91 crores, down by 2.5% over the fiscal FY 2020-21. Consolidated Earnings before Interest and Taxes for fiscal FY 2021-22 were ₹ 122.56 crores up by 1.8% over the fiscal FY 2020-21. Consolidated PAT for the full year FY 2021-22 were at ₹ 128.25 crores up by 12.0% over the fiscal FY 2020-21. Consolidated EPS was ₹ 85.31 for the full fiscal year FY 2021-22.
People
On the people front, the headcount for the Sasken Group stood at 1,374 as of March 31, 2022. The attrition currently stands at 36% for trailing twelve months. We are taking several initiatives including strengthening our total rewards package and enhancing the career development opportunities of our talent pool with a view to increasing retention.
Utilization for the quarter averaged 77.9%. We are making good progress with regards to onboarding graduate trainees who will be joining us from August of FY 2022-23. We have a comprehensive technical and behavioral training program to help these fresh graduates embark upon a successful career in product engineering and digital services.
Customers
The total number of active customers stands at 65.
Business Highlights
In the Communication & Devices segment, we continue to win new business from customers who value our deep understanding of wireless protocols spanning short range and wide area communications. As the Android platform gains greater acceptance, we see opportunities for market growth. However, it may be noted that the competitive intensity is stepping up in this area. We continue to enhance our delivery capability to retain our competitive edge.
In the satellite segment, we anticipate demand to be robust. However, it must be noted the sales cycles are protracted and outcomes binary in nature. We are encouraged by our business wins in 5G services and expect this market to be of strategic importance to us.
In the automotive domain, we have developed assets in test automation of integrated cockpit systems by leveraging cloud infrastructure and language processing. Our strategy of working with semiconductor platforms have resulted in opportunities for productization cycles of next generation telematics platforms. Correspondingly, we are building traction not only with conventional and electric OEMs but also with Tier 1s.
In semiconductors, we are seeing healthy growth in platform engineering offerings enabling our customers to launch new chipsets. We continue to build our market presence with both the captive centres and headquarters of large semiconductor companies.
On the digital arena, we are making a concerted effort to cross sell our bouquet of offerings. Accordingly, we have won new opportunities with our automotive and industrial customers. The quarter also witnessed a new engagement in the digital engineering space with a US based digital marketing company.
Final Dividend
The Board of Directors has recommended a final dividend of Rs.13 per equity share for the year ended March 31, 2022. 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 per equity share (including interim dividend payment of Rs.12 declared on October 21, 2021).
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
