Sasken Communication Technologies : Q2 FY16-17 result announced

Sasken Q2 FY16-17 result announced

Bangalore, 27 October 2016: Sasken Communication Technologies Limited (BSE: 532663, NSE: SASKEN) today announced its consolidated results according to Indian GAAP for the quarter and half year ended September 30, 2016.

Speaking on the occasion, Rajiv C Mody, Chairman, Managing Director & CEO, Sasken Communication Technologies said: We are encouraged by the half yearly performance which is a result of our single minded pursuit of revenue growth and profitability. We are marching forward and pursuing a strategy that sharpens our focus on select verticals where we are seeing good traction and growth opportunities. Our Digital IT business is expanding and our suite of enterprise transformation solutions is gaining market acceptance. We have strengthened our market facing organization by the induction of leaders who are highly reputed and have a track record of acquiring new customers and scaling existing business. Hari Haran, our new President, Business Line, Global Sales & Marketing, an industry veteran is leading the charge to add velocity to our growth trajectory.

Performance Snapshot for the Half Year: H1 FY 17

• Consolidated Revenues for H1 FY 17 at ₹ 240.17 Crore
  • Up 1.3 % YoY from H1 FY 166
• Consolidated EBIDTA for H1 FY 17 at ₹ 27.02 Crore
  • Up 19.3 % YoY from H1 FY 16
• Consolidated PAT for H1 FY 17 at ₹ 25.18 Crores
  • Up 23.4 % YoY from H1 FY 16
  • PAT Margins for the half year at 10.5 %

Key Business metrics for the half year: H1 FY 17

• Software services revenues for H1 FY 17 at ₹232.21 Crore
  • Up 3.6 % YoY from H1 FY 16
• Products group revenues for H1 FY 17 at ₹6.69 Crore
  • Down 42.4 % YoY from H1 FY 16
• Consolidated EBIDTA margins were at 11.3 %.
  • Services EBIDTA margins were at 10.5 %
  • Products EBIDTA margins were at 44.2 %

Performance Snapshot for the Quarter: Q2 FY 17

• Consolidated Revenues for Q2 FY 17 at ₹118.40 Crore
  • Down 2.8 % sequentially over the previous quarter
  • Down 7.4 % YoY from Q2 FY 16
• Consolidated EBIDTA for Q2 FY 17 at ₹8.06 Crore
  • Down 57.5 % sequentially over the previous quarter
  • Down 34.8 % YoY from Q2 FY 16
• Consolidated PAT for Q2 FY 17 at ₹9.58 Crore
  • Down 38.6 % sequentially over the previous quarter
  • Down 9.2 % YoY from Q2 FY 16
  • PAT Margins for the quarter at 8.1 %

Key Business metrics for the Quarter: Q2 FY 17

• Software services revenues for Q2 FY 17 at ₹113.97 Crore
  • Down 3.6 % sequentially over the previous quarter
  • Down 2.7 % YoY from Q2 FY 16
• Products group revenues for Q2 FY 17 at ₹3.71 Crore
  • Up 24.0 % sequentially over the previous quarter
  • Down 62.7 % YoY from Q2 FY 16
• Consolidated EBIDTA margins were at 6.8 %
  • Services EBIDTA margins were at 5.7 %
  • Products EBIDTA margins were at 46.2 %
• Revenue contribution from
  • the Top five customers stood at 44.7 % and
  • from Top 10 customers at 65.5 %
• Consolidated EPS was at ₹5.40 for the quarter
• Added 8 new customers during the quarter taking the total number of active customers to 142

A fact sheet providing the operating metrics for the company and a presentation for analysts can be downloaded from the investor section of the corporate website www.sasken.com

About Sasken:

Sasken is a global leader in providing embedded R&D services, comprehensive testing services, IT infrastructure services and application development & data services to device OEMs, network OEMs, semiconductor, automotive & industrial OEMs, service provider and digital enterprises across the world. Global Fortune 500 and Tier 1 companies in these segments are part of Sasken's customer profile.

Sasken's solutions are backed by ISO 9001:2000, ISO 27001 and TL 9000 certifications. Sasken's proprietary quality management systems strengthen our business offerings and ensure client satisfaction. Sasken's commitment to environment is highlighted by its ISO 14001 certification.

For further information please visit www.sasken.com

Disclaimer on Forward Looking Statements:

Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements due to risks or uncertainties associated with our expectations with respect to, but not limited to, our ability to successfully implement our strategy and our growth and expansion plans, technological changes, our exposure to market risks, general economic and political conditions in India which have an impact on our business activities or investments, changes in the laws and regulations that apply to the Indian IT services industry, including with respect to tax incentives and export benefits, adverse changes in foreign laws, including those relating to outsourcing and immigration, increasing competition in and the conditions of the Indian and global IT services industry, the prices we are able to obtain for our services, wage levels in India for IT professionals, the loss of significant customers the monetary and interest policies of India, inflation, deflation, unanticipated turbulence in interest rates, foreign exchange rates, equity prices or other rates or prices, the performance of the financial markets in India and globally, changes in domestic and foreign laws, regulations and taxes and changes in competition in the information technology/ telecommunication industries. Additional risks that could affect our future operating results are more fully described in our Red herring filing. The company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the Company.

Spokesperson: Swami Krishnan VP Corporate Communication & EE E: [e-mail] T: [phone]