Sasken Technologies Ltd · NSE:SASKEN

Sasken Technologies — Sasken Communication Technologies — Q3 FY06 Earnings Presentation

23 slides from Sasken Technologies's earnings presentation, January 2006

  1. Slide 1: Sasken Group Results for Q3 FY06

    Sasken Group Results for Q3 FY06 January 2006 www.sasken.com © Copyright 2005 2003 Sasken Communication Technologies Limited Sasken confidential

  2. Slide 2: Disclaimer

    Disclaimer Certain statements made in this release concerning our future growth prospects may be interpreted as forward looking statements, which involve a number of risks and uncertainties that could cause the actual results to differ materially from those in such forward looking statements. Invest

  3. Slide 3: Financial Highlights

    Financial Highlights • Consolidated revenues for the nine months ended December 31, 2005 grew Y-o-Y by 37.6% to Rs 2,300.76 M and PAT grew by 40.5% to Rs 166.28 M. • Consolidated revenues grew Y-o-Y by 30.9% in Q3 06 to Rs 759.40 M but decreased Q-o-Q by 12.1%. • Software services revenues grew Y-o-

  4. Slide 4: Consolidated Results

    Consolidated Results January 2006 www.sasken.com © Copyright 2003 Sasken Communication Technologies Limited

  5. Slide 5: Income Statement Summary (Consolidated)

    Income Statement Summary (Consolidated) Q3FY06 % Q2FY06 % Q3FY05 % % Growth over Rs. Million Q2FY06 Q3FY05 Revenues 759.40 100.0 863.94 100.0 580.00 100.0 (12.1) 30.9 Cost of Revenue 460.25 60.6 488.28 56.5 356.12 61.4 (5.7) 29.2 R&D1 26.00 3.4 42.49 4.9 59.00 10.2 (38.8) (55.9) Gross Profit 273.15

  6. Slide 6: Segmental Results (Consolidated)

    Segmental Results (Consolidated) Rs. Million Q3FY06 Q2FY06 Q3FY05 % Growth over Q2FY06 Q3FY05 Revenues 759.40 863.94 580.00 (12.1) 30.9 Software services 737.88 708.77 500.40 4.1 47.5 Products 21.52 155.17 79.61 (86.1) (73.0) EBITDA 120.90 178.41 37.31 (32.2) 224.0 Software services 205.60 155.71 55

  7. Slide 7: Balance Sheet Summary (Consolidated)

    Balance Sheet Summary (Consolidated) Dec 31, 2005 % Mar 31, 2005 % Rs. Million Liabilities Share capital 277.99 7.1 168.47 11.7 Share application - - 2.55 0.2 ESOP Outstanding 7.95 0.2 7.89 0.6 Reserves & Surplus 3,577.58 92.1 1,240.47 86.5 Borrowing 24.89 0.6 14.56 1.0 Total Liabilities 3,888.41 10

  8. Slide 8: Corporate Highlights

    Corporate Highlights • Global Expansion • Announced a development and support centre in Nuevo Leon, Mexico through a wholly owned subsidiary – Sasken Communication Technologies Mexico S.A De C.V • People First • Ranked #2 in the Business Today-Mercer-TNS “Best Companies to work for in India” survey

  9. Slide 9: Operating Metrics

    Operating Metrics www.sasken.com © Copyright 2003 Sasken Communication Technologies Limited

  10. Slide 10: Geography Wise Revenue

    Geography Wise Revenue % Q3 FY06 Q2 FY06 Q3 FY05 Nine months Nine months ending ending December December 31, 2005 31, 2004 North America 36.5 35.3 35.4 36.4 35.2 Europe 38.4 30.5 49.2 36.2 49.9 India 22.1 17.9 8.0 20.0 6.9 APAC 3.0 16.3 7.4 7.4 8.0 Total 100.0 100.0 100.0 100.0 100.0 www.sasken.com

  11. Slide 11: Customer Concentration

    Customer Concentration % Q3FY06 Q2FY06 Q3FY05 Nine months Nine months ending ending December December 31, 2005 31, 2004 Top 5 75.7 74.2 71.5 72.3 71.1 customers Top 10 86.0 83.8 87.6 83.7 83.9 Customers www.sasken.com © Copyright 2006 Sasken Communication Technologies Limited

  12. Slide 12: Human Resources

    Human Resources Q3 FY06 Q2 FY06 Q3 FY05 Total Employees 2,504 2,466 2,086 Gross Adds 188 474 338 Net Adds 38 307 204 Attrition (%)** 20.9% 23.4% 24.9% ** Based on voluntary attrition www.sasken.com © Copyright 2006 Sasken Communication Technologies Limited

  13. Slide 13: Services Business

    Services Business www.sasken.com © Copyright 2003 Sasken Communication Technologies Limited

  14. Slide 14: Services Revenue Mix

    Services Revenue Mix Q3 FY06 Q2 FY06 Q3 FY05 Nine months Nine months ending ending December 31, December 31, 2005 2004 Rs. Million % Rs. % Rs. % Rs. Million % Rs. Million % Million Million T&M 127.02 17.2 143.71 20.3 100.53 20.1 389.50 18.8 343.47 23.9 onsite T&M off- 566.28 76.7 484.21 68.3 292.83

  15. Slide 15: Relationships with Tier 1 Customers

    Relationships with Tier 1 Customers 15 14 13 13 12 Number of Tier 1 customers 11 10 9 8 7 6 5 4 3 2 2 1 1 1 1 0 <$1M >$1M <$3M >$3M <$10M >$10M <$20M >$20M Based on trailing 12 months Services revenues in USD www.sasken.com © Copyright 2006 Sasken Communication Technologies Limited

  16. Slide 16: Services Utilization

    Services Utilization Utilization 100% 90% 80% 74.3% 72.8% 74.0% 70% 61.9% 57.2% 60% 50% 40% 30% 20% 10% 0% Q3FY06 Q2FY06 Q3FY05 Nine months Nine months ending Dec ending Dec 31, 2005 31, 2004 www.sasken.com © Copyright 2006 Sasken Communication Technologies Limited

  17. Slide 17: Services Highlights

    Services Highlights • Robust Growth • 43.9% YTD growth in services • Offshore revenues continue to grow at a healthy pace • Enhancing Relationships with Key Accounts • Several Key “Tier 1” accounts in various stages of scaling/contributing to “Share of Wallet” growth • EBITDA margin • 22.0% to 27.9%

  18. Slide 18: Products Business

    Products Business www.sasken.com © Copyright 2003 Sasken Communication Technologies Limited

  19. Slide 19: Products Revenue Mix

    Products Revenue Mix Q3FY06 Q2FY06 Q3FY05 Nine months Nine months ending ending December 31, December 31, 2005 2004 Rs. % Rs. % Rs. % Rs. % Rs. % Million Million Million Million Million Licensing 14.07 65.4 123.86 79.8 28.14 35.3 161.05 69.7 83.83 35.8 Royalty 0.71 3.3 6.84 4.4 9.73 12.2 18.21 7.9 2

  20. Slide 20: Products Highlights

    Products Highlights • Signed a license agreement with IXI Mobile to use IXI-Connect OSTM, making Sasken a one-stop shop for mobile software solutions. • Strengthened Integrated Solutions product line by investing in IXI-Connect OSTM • This will increase the addressable market for Sasken products as

  21. Slide 21: Additional Financial Information

    Additional Financial Information www.sasken.com © Copyright 2003 Sasken Communication Technologies Limited

  22. Slide 22: Income Statement Summary (Consolidated)

    Income Statement Summary (Consolidated) Nine months % Nine months % Growth in % Rs. Million ending ending December 31, December 31, 2005 2004 Revenues 2,300.76 100.0 1,672.18 100.0 37.6 Cost of Revenue 1,372.97 59.7 939.04 56.2 46.2 R&D1 109.55 4.8 146.07 8.7 (25.0) Gross Profit 818.24 35.6 587.07 3

  23. Slide 23: Thank You

    Thank You www.sasken.com © Copyright 2003 Sasken Communication Technologies Limited

Sasken Communication Technologies — Q3 FY06 Earnings Presentation on 6ix