Sasken Communication Technologies : Q3 FY16-17 result announced

Bangalore, 18 January 2017:Sasken Communication Technologies Limited (BSE: 532663, NSE: SASKEN) today announced its consolidated results according to Indian GAAP for the quarter and nine months ended December 31, 2016.

Speaking on the occasion, Rajiv C Mody, Chairman, Managing Director & CEO, Sasken Communication Technologies said: This quarter has been a challenge mainly on account of setbacks in a few projects. Our strong engineering base gives us the confidence and ability to tide over this. With this behind us, we are now focussed on strengthening our sales and customer facing organizations across all geographies. We are placing greater emphasis than before to pro-actively lead with a portfolio of solutions that will orchestrate better competitive advantage for both our customers and ourselves. Our new segment and practise teams are working diligently to set us on a sustainable growth trajectory.

Performance Snapshot for the Quarter: Q3 FY 17

• Consolidated Revenues for Q3 FY 17 at ₹ 111.11 Crore
• Down 6.2 % sequentially over the previous quarter
• Down 12.0 % YoY from Q3 FY 16
• Consolidated EBIDTA for Q3 FY 17 at ₹ 4.37 Crore
• Down 45.8 % sequentially over the previous quarter
• Down 70.8 % YoY from Q3 FY 16
• Consolidated PAT for Q3 FY 17 at ₹ 12.93 Crore
• Up 35.0 % sequentially over the previous quarter
• Up 14.9 % YoY from Q3 FY 16
• PAT Margins for the quarter at 11.6 %

Key Business metrics for the Quarter: Q3 FY 17

• Software services revenues for Q3 FY 17 at ₹ 107.90 Crore
• Down 5.3 % sequentially over the previous quarter
• Down 10.3 % YoY from Q3 FY 16
• Products group revenues for Q3 FY 17 at ₹ 2.82 Crore
• Down 24.0 % sequentially over the previous quarter
• Down 46.9 % YoY from Q3 FY 16
• Consolidated EBIDTA margins were at 3.9 %.
• Services EBIDTA margins were at 2.8 %
• Products EBIDTA margins were at 52.0 %
• Revenue contribution from
• the Top five customers stood at 45.6 % and
• from Top 10 customers at 65.7 %
• Consolidated EPS was at ₹ 7.30 for the quarter
• Added 6 new customers during the quarter taking the total number of active customers to 138

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 websitewww.sasken.com

About SaskenSasken 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 visitwww.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.