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Sasken Reports Q1

India-based R&D outsourcing company Sasken reports net profit up by 81 percent year on year during the quarter ended June 30

July 20, 2006

2 Min Read

BANGALORE, India -- Sasken Communication Technologies Limited (Sasken), a pioneer in telecom R&D outsourcing, today announced results for the first quarter ended June 30, 2006.

The consolidated revenues for the quarter ended June 30, 2006 stood at Rs 91.12 crore, in comparison to Rs 67.74 crore for the same period last year (Q1 FY06), registering a growth of 35%. Profit After Tax for the same period stood at Rs 8.65 crore, in comparison to Rs 4.77 crore for the first quarter last year, registering a growth of 81%. Comparing with the sequential quarter (Q4 FY06), the revenues grew by 17% (Rs 78.05 crore in Q4 FY06) and Profit After Tax grew by 38% (Rs 6.29 crore in Q4 FY06).

Key Financial Highlights for Q1 FY07

  • Cash and cash equivalents stand at Rs. 20.67 crore as on June 30, 2006, compared to Rs. 15.15 crore as on March 31, 2006

  • Average collection period stands at 82 days in Q1 FY07 in comparison to 80 days during the previous quarter

  • The consolidated Forex-hedged position, as on June 30, 2006 was USD 49 Million

Key Business Highlights and Metrics for Q1 FY07

  • Acquired Integrated SoftTech Solutions (iSoftTech), a 110-people company in Chennai, in April 2006; accounts consolidated from June 1, 2006

  • Mexico Development centre ramping up and started contributing to revenues from Q1 FY07

  • A net total of 322 people were added this quarter (Gross Adds of 469), taking the total employee strength to 2,897 as on June 30, 2006 Utilization on the services side stands at 79% in Q1 FY07

  • 11 new customers added during the quarter; a total of 48 active customers

  • Increase in blended and offshore billing rates

  • Revenue contribution from the top five customers stood at 76.7% for Q1 FY07 in comparison to 76.3% for Q4 FY06

Commenting on the performance, Rajiv Mody, Chairman & CEO, Sasken said, “We have had a good start to the new financial year. Both in sequential and corresponding quarter terms, our topline and bottomline performance has been as expected. Specifically on the services side, we have recorded an annual growth rate of 40% and a sequential quarter growth of 19%. Products continue to be on track, and we expect handsets containing Sasken IP to start shipping from November 2006.”

“The acquisition that we made in April (iSoftTech, Chennai) has added a new centre, and a new set of capabilities for us; the integration activities on this front continue smoothly as per plan. We also launched a new Test Lab offering, which is the first of its kind in India, last quarter,” he added.

“Another development was that Sasken has been recommended for the ISO 14001 certification, which is a validation of our commitment as a corporate citizen towards the environment,” added Rajiv.

Sasken Communication Technologies Ltd.

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