Sasken Reports 31.7% YoY Revenue Growth in Q2 FY25 Results

Sasken Technologies, a global leader in embedded and digital solutions, today announced results for Q2 FY25 ended 30^th September 2024. For the third consecutive quarter Sasken reported a positive trajectory, highlighting the positive impact created by its 60x4x3 account mining-based growth strategy. The quarter was marked by continued strategic investments in expanding geographies, building capacity and capabilities to meet growing customer demand.

In Q2 FY25, Sasken secured significant wins across multiple sectors worth USD ~11.5 million, which includes new orders of USD ~ 7.2 million and added three new logos.  Some of the noteworthy wins of the quarter include:

• IP ownership project with a global semiconductor design and manufacturer
• Landmark GX project with a world-leading satellite communications company
• Linux SMR services for a market leader in automation, safety technologies and energy solutions
• RF design silicon project with a leading consumer electronics and telecommunications equipment company
• RFID Production Testers for global market leader in the design and manufacturing of RFID inlays and tags

Key Financial Highlights

Consolidated PAT for Q2 FY25 was at ₹ 12.29 crores, down by 30.5% over the previous quarter. PAT margin for Q2 FY25 was at 9.1%.

Performance Snapshot for H1 FY 25

·       Consolidated Revenues for H1 FY25 at ₹ 258.39 Crore

o   Up 28.6 % YoY from H1 FY24

·       Consolidated EBIT for H1 FY25 at ₹ 3.09 Crore

o   Down 84.6 % YoY from H1 FY24

·       Consolidated PAT for H1 FY25 at ₹ 29.97 Crore

o   Down 31.5 % YoY from H1 FY24

Performance Snapshot for the Quarter: Q2 FY25

·       Consolidated Revenues for Q2 FY25 at ₹ 135.03 crores

o   Up 9.5 % sequentially over the previous quarter

o   Up 31.7 % YoY from Q2 FY24

·       Consolidated EBIT for Q2 FY25 at ₹ 0.91 crore

o   Down 58.7 % sequentially over the previous quarter

o   Down 92.9 % YoY from Q2 FY24

o   EBIT Margins for the quarter at 0.7 %

·       Consolidated PAT for Q2 FY25 at ₹ 12.29 crore

o   Down 30.5 % sequentially over the previous quarter

o   Down 32.0 % YoY from Q2 FY24

o   PAT margins for the quarter at 9.1 %

Key business metrics

·       Revenue contribution from the Top 5 customers stood at 33.0 % and from the Top 10 customers at 55.0 %.

·       Consolidated EPS was at ₹ 7.98 for Q2 FY25.

Our acquisition of Sasken Silicon six months back is on the growth trajectory.  The teams are getting well integrated into Sasken and becoming integral to expanding our semi-con offerings across verticals. In the quarter the team was instrumental in winning projects not only in silicon design but also on the service side. This strategic acquisition is helping us expand our offerings and positions us to provide cutting-edge solutions for both existing and future clients.

On the occasion Mr. Rajiv C. Mody, Chairperson, MD & CEO of Sasken Technologies Ltd., said “Q2 FY25 has been another good quarter for Sasken, with sales growth both on a quarter-on-quarter and year-on-year basis. Our 60x4x3 account mining strategy continues to deliver results, reflected in higher utilization rates, an improved customer profile, and a growing number of $1M+ accounts. We are particularly encouraged by our expanding workforce and declining attrition rates, which underscore our commitment to employee engagement and development. While short-term investments may impact margins, we are confident that as revenues and volumes scale, profitability will follow. Our focus remains on innovation, partnerships, and delivering long-term value for all our stakeholders."

As we conclude Q2 FY25, Sasken remains committed to driving innovation, strengthening customer relationships, and enhancing workforce capabilities. With our strategic investments and strong foundation, we are well-positioned to deliver long-term value and sustainable growth, continuing to meet the evolving needs of our clients and stakeholders.