Dear Analyst,
It is my pleasure to highlight the business performance of the Sasken Group for the second quarter of FY 2021-22, ending September 30, 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 Q2 Fiscal 2022. In Q2 FY 2021-22, the consolidated revenues for the Sasken Group went down by 1.1% over the previous quarter to ₹ 108.65 crores. Consolidated Earnings before Interest and Taxes for Q2 fiscal ’22 were ₹ 32.64 crores, an increase of 6.3% sequentially. Consolidated PAT for Q2 fiscal ‘22 was at ₹ 37.29 crores, up by 9.7% over the previous quarter. PAT margin for Q2 fiscal ’22 was at 34.4 %. Consolidated earnings per share, was ₹ 24.80 for the quarter. Cash and cash equivalents were approximately ₹ 503.7 crores as of September 30,2021.
Quarter-on -Quarter (Comparable quarter of the previous year)
In Q2 FY 2021-22, the consolidated revenues for the Sasken Group went up by 1.3% QoQ to ₹ 108.65 crores. Consolidated Earnings before Interest and Taxes for Q2 fiscal ’22 were ₹ 32.64 crores, an increase of 34.3% QoQ. Consolidated PAT for Q2 fiscal ‘22 was at ₹ 37.29 crores, up by 60.2% QoQ.
Year on Year (Comparable previous half year)
In H1 FY 2021-22, the consolidated revenues for the Sasken Group went down by 0.9% YoY to ₹ 218.45 crores. Consolidated Earnings before Interest and Taxes for H1 fiscal ’22 were ₹ 63.35 crores, an increase of 17.7% YoY. Consolidated PAT for H1 fiscal ‘22 was at ₹ 71.29 crores, up by 38.3% YoY. PAT margin for H1 fiscal ’22 was at 32.7 %. Consolidated earnings per share, was ₹ 47.43 for H1 FY 2021-22 as against ₹ 34.33 for H1 FY 2020-21.
People
On the people front, the headcount for the Sasken Group stood at 1,276 as of September 30, 2021. The attrition currently stands at 35% for trailing twelve months. As the war for talent increases, we are taking all possible measures to continue attracting, developing, and retaining our enviable talent pool. We have just completed another round of salary hikes this quarter, which are effective October 1, 2021. We have taken this step to stem attrition and trust these and other measures for employee retention will reduce attrition. The salary increment will impact our margins in the coming quarters.
Utilization for the quarter averaged 87.3%, which is a record high and not sustainable. We are putting in measures to improve the intake from both our lateral and campus hiring initiatives.
Customers
The total number of active customers stands at 66.
Business Highlights
In the Communication & Devices segment, we continue to see a growing demand for services in the sphere of new product introduction (NPI), OS version upgrades, and security release management. We are pursuing strategies to offer such services to a wider spectrum of consumer electronic devices including ruggedized tablet computers.
The push to expedite 5G rollout in certain geographies is resulting in both development and testing opportunities for us in the area of access network solutions. In the satellite segment, we are seeing a renewed interest in our highly differentiated abilities to build solutions as the quest to provide satellite broadband services increases. As before, these opportunities are binary in nature and the sales cycles are protracted. The need for enhanced connectivity has helped us win two marquee customers in the second quarter.
In the automotive domain, we continue to make progress in infotainment and digital clusters. We have green shoots in the area of cellular vehicle to everything (CV2X), with projects related to field testing and integration support. Our engagement in providing rapid charging and digital solutions for the electric vehicle segment holds the promise of achieving scale in the coming quarters.
In other segments such as semiconductors and industrial, we continue to explore newer opportunities while consolidating and building on our existing engagements. The demand for digital services continue as enterprises continuously strive to deliver immersive customer experiences and smart manufacturing by the integration of multiple technologies from sensor fusion all the way to data-driven decision enablement.
Operational Management
We have striven to provide vaccination and medical support to our employees and their extended families to help navigate the pandemic. We continue to support work from home and enjoyed customer confidence due to our commitment to deliver desirable outcomes.
Dividend
The Board of Directors have declared an interim dividend of ₹ 12 per equity share of ₹ 10 each for the financial year 2021-22.
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
