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 second quarter of FY 2018 - 19, ending September 30, 2018.

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 of our presentation for full details

Let me begin by walking you through our financials for Q2 Fiscal 2019. In Q2 FY 2018-19, the consolidated revenues for the Sasken Group was down over the previous quarter to ₹113.09 crores. Consolidated Earnings before Interest, Depreciation, Taxes and Amortization cost for Q2 fiscal ‘19 were ₹13.32 crores, decline of 35.7% sequentially. Consolidated PAT for Q2 fiscal ‘19 was at ₹16.90 crores, down by 39.7% over the previous quarter. PAT margins for Q2 fiscal ’19 were 15%. Consolidated earnings per share, was ₹9.87 for the quarter. Cash and cash equivalents were approximately ₹506.90 crores as of September 30, 2018.

This quarter there have been headwinds that we were unable to circumvent despite our best efforts. The decline in both revenue and profitability have been due to the deferment of certain programs from our key accounts and overruns in our fixed price programs. We are diligently working with our customers to be compensated for the additional work we have executed for ensuring their commercial success. We are confident that we will work to reestablish our growth trajectory as our fundamentals are strong.

On the people front we have completed the annual compensation review cycle for all employees. The average annual increment is in line with the industry median. We continue to make steady progress to ensure that our engineering talent is among the best in the industry. Our competency management framework KenMAP allows us to tightly align our engineering capabilities with the needs of the market.

The head count as of September 30, 2018 stood at 1781. Attrition for the trailing twelve months stood at 24.59%. We continue to nurture and develop our talent pool through multiple learning and development initiatives.

The total number of active customers stood at 98 and we added 2 customers this quarter.

Interim Dividend

The Board of Directors have declared an interim dividend of ₹.5.00 per equity share of ₹.10 each. The Record Date to ascertain the list of shareholders who will be eligible for the dividend will be 31st October, 2018 and the same will be disbursed on or before 21st November, 2018

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
(formerly Sasken Communication Technologies Limited)