Dear Analyst,
It is my pleasure to highlight the business performance of the Sasken Group for the third quarter of FY 2021-22, ending December 31, 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.
Quarter-on -Quarter (Sequential)
Let me begin by walking you through our financials for Q3 Fiscal 2022. In Q3 FY 2021-22, the consolidated revenues for the Sasken Group went down by 2.2% over the previous quarter to ₹ 106.27 crores. Consolidated Earnings before Interest and Taxes for Q3 fiscal ’22 were ₹ 29.85 crores, a decrease of 8.6% sequentially. Consolidated PAT for Q3 fiscal ‘22 was at ₹ 30.07 crores, down by 19.3% over the previous quarter. PAT margin for Q3 fiscal ’22 was at 28.2 %. Consolidated earnings per share, was ₹ 20.00 for the quarter. Cash and cash equivalents were approximately ₹ 518 crores as of December 31,2021.
Quarter-on -Quarter (Comparable quarter of the previous year)
In Q3 FY 2021-22, the consolidated revenues for the Sasken Group went down by 6.7% QoQ to ₹ 106.27 crores. Consolidated Earnings before Interest and Taxes for Q3 fiscal ’22 were ₹ 29.85 crores, a decrease of 8.7% QoQ. Consolidated PAT for Q3 fiscal ‘22 was at ₹ 30.07 crores, down by 11.3% QoQ.
People
On the people front, the headcount for the Sasken Group stood at 1,318 as of December 31, 2021. The attrition currently stands at 36.4% for trailing twelve months. At Sasken, we are committed to the path of building a strong employer brand to attract, continually develop, engage and retain talent.
Utilization for the quarter averaged 83.4%, We are making a concerted effort to onboard graduate engineering trainees and take them through our proven competency development program. This addition will help us manage our staffing needs effectively.
Customers
The total number of active customers stands at 66.
Business Highlights
In the Communication & Devices segment, we are helping customers launch new products in the market and ensuring that products are upgraded and kept secure through our Android SMR offering. The proliferation of Android across different segments has resulted in strong interest from our existing and new customers resulting in new deals.
In the satellite segment, satcom’s resurgence as an internet access method for remote areas with multiple LEO and MEO launches is strengthening our position as a dependable Product Engineering Service partner in this space. Correspondingly, we expect to see an uptick in demand for our services in the satellite communications segment. However, it is to be noted that opportunities in this space are binary in nature and the sales cycles are protracted.
In the automotive domain, both OEMs and tier-1s are expected to bounce back and address their backlog of engineering activities. We continue to see traction in areas of cellular vehicle to everything (CV2X), EV and connected mobility. Within EVs, we are targeting multiple domains including infotainment systems, battery and power management, telematics, cloud, applications, and factory line testing.
In semiconductors, the easing of chip shortage has aided the industry recovery. We are seeing a healthy growth in platform engineering offerings enabling our customers to launch new chipsets. Our investments in the industrial space for new offerings in PaaS and Smart Assets are expected to gain customer traction in coming quarters.
On the digital arena, we are making a concerted effort to cross sell our bouquet of offerings to our existing customer base. We have had early success in the areas of automotive and device communication segments. Our customers see value in engaging with us across both traditional product engineering and digital services to leverage the synergies between them.
Operational Management
We have initiated vaccination camps for children of our employees and their friends in line with the guidelines issued by the Union Health Ministry. We continue to support work from home and enjoyed customer confidence due to our commitment to deliver desirable outcomes.
Resourcing challenges due to attrition and competitive intensity are the key headwinds facing us across segments. To mitigate these, we have strengthened our talent attraction and retention measures. Simultaneously, we are both strengthening our existing offerings and creating new ones to remain as valued partners for our customers.
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
