The Hindu Business Line : Sasken Tech net marginally up

Telecom software maker Sasken Technologies Ltd reported a marginal growth in its net profits and a 27 per cent increase in revenues for the year-ended March 31, over the previous year. Sasken directors have recommended a dividend of Rs 3 per share (30 per cent on par value of Rs 10 each) for the year.

Sasken reported a net profit of Rs 22.91 crore (after an exceptional item of Rs 6.76 crore) on consolidated revenues of Rs 308.12 crore for FY06 as compared to a net of Rs 22.78 crores on revenues of Rs 241.77 crore in the previous year. The exceptional item relates to the payment made against a sum awarded in arbitration in a dispute with a customer with whom a licensing agreement has been made.

For the fourth quarter ended March 31, the company's net profits declined sharply to Rs 6.28 crore on increased revenues of Rs 78.05 crore as compared to a net of Rs 10.94 crore on revenues of Rs 74.55 crore in corresponding quarter last year. The company added a total of 203 people in the quarter, taking the total employee strength to 2,575 as on March 31."Our services business has recorded an annual growth of 35 per cent. This has been backed by a healthy increase in annual utilisation rate from 64 per cent to 76 per cent, resulting in EBITDA from services moving up by 57 per cent annually," said Mr Rajiv Mody, Chairman and CEO, Sasken.

The company incorporated a development centre in China during the fourth quarter, besides its Mexico centre. "We continue to follow our strategy of entering key accounts and scaling them; this has been validated by one Tier 1 account now scaling to $3 million plus in annualised revenues," he said.

The recently announced acquisition of Chennai-based Integrated SoftTech Solutions does not have any impact on the business performance for Q4 and FY06.

"On the products side, we continue to be in investment mode. The shift from a licensing model to a royalty model is slowly starting to pay off, and we did realise royalty revenues from a leading Japanese handset manufacturer this quarter," said Mr Mody.

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