Sasken Communication tumbles after weak sequential earnings in Q4

Sasken Communication Technologies tumbled 6.7% to Rs 209 at 11:33 IST on BSE after consolidated net profit declined 18.4% to Rs 9.07 crore on 2.8% growth in revenue to Rs 116.32 crore in Q4 March 2014 over Q3 December 2013.

The Q4 result was announced after market hours on Friday, 25 April 2014.

Meanwhile, the S&P BSE Sensex was down 51.66 points or 0.23% at 22,636.41.

On BSE, so far 41,000 shares were traded in the counter as against average daily volume of 38,829 shares in the past one quarter.

The stock hit a high of Rs 221 and a low of Rs 207.50 so far during the day. The stock had hit a 52-week high of Rs 234.90 on 21 April 2014. The stock had hit a 52-week low of Rs 100.60 on 4 September 2013.

The stock had outperformed the market over the past one month till 25 April 2014, advancing 21.48% compared with the Sensex's 2.87% rise. The scrip had also outperformed the market in past one quarter, jumping 32.35% as against Sensex's 7.36% rise.

The small-cap company has equity capital of Rs 21.28 crore. Face value per share is Rs 10.

Sasken Communication Technologies (Sasken)'s consolidated EBITDA (earnings before interest, taxation, depreciation and amortization) declined 13.7% to Rs 11.74 crore in Q4 March 2014 over Q3 December 2013.

Sasken's consolidated net profit rose 29.2% to Rs 9.07 crore on 2.6% growth in revenue to Rs 116.32 crore in Q4 March 2014 over Q4 March 2013. EBITDA declined 6.7% to Rs 11.74 crore in Q4 March 2014 over Q4 March 2013.

The company added 4 new customers during the quarter making the total of active customers to 133.

Sasken's consolidated net profit surged 61.1% to Rs 51.47 crore on 3.5% decline in revenue to Rs 458.03 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).

The company's EBITDA rose 27.4% to Rs 53.39 crore in FY 2014 over FY 2013.

Speaking on the results, Sasken CEO Mr. Anjan Lahiri said, "After two quarters of flat revenues in Q2 and Q3 (on dollar terms) we are pleased to have registered a quarter of revenue growth. However, we are in the middle of a transformation and are adding new services and addressing new segments. The results of these changes will take time to show. The new team is in place and we are on our way to remaking of our business model based on the tremendous strengths of the past 25 years of great customer delivery".

Sasken said it has reorganized its business unit structure to better align with the market. It will now focus on two key business segments, Communication & Devices and IT Services and four practices consisting of ErND practice, Testing Practice, Applications and Data Services Practice and the Infrastructure Practice.

Sasken Communication Technologies' board of directors at its meeting held on Friday, 25 April 2014, declared interim dividend of Rs 3 per share and final dividend of Rs 1.50 per share for FY 2014, subject to the approval of shareholders at the Annual General Meeting.

Sasken 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 vendors, operators and retail & insurance enterprises across the world.

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