+ sasken ? BSE Ltd. January 18, 2017 Dept of Corporate Services - CRD PJ Towers, Dalal Street, ‘Mumbai - 400 001 National Stock Exchange of India Ltd. “Exchange Plaza’, C-1, Block - G, Bandra - Kurla Complex, Bandra (E), ‘Mumbai - 400 054 By Web upload Dear Sirs, Sub: Qutcome of the Board Meeting held today from 1.00 p.m. to 5.00 p.m. Ref: Scrip Code 532663 / SASKEN Please find below the outcome of the Board Meeting held today from 1.00 p.m. to 5.00 p.m. 1. Financials We are sending herewith the audited financial results (both consolidated and standalone) of the Company for the quarter and nine months ended 31* December, 2016 as taken on record. Please also find enclosed a copy each of the following: > Auditors’ Report on (a) stand alone and (b) consolidated financial results as per Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘SEBI Listing Regulations’). > Media Release being issued on this occasion. > Communication to Analysts on Sasken’s Business Performance for the quarter and nine months ended 31% December, 2016. ‘As provided under Regulation 47(1)(b) of SEBI Listing Regulations, we will be publishing the extract of the audited consolidated financial results in the newspapers. The full format of the Quarterly Financial Results will be made available on the Company's website at www.sasken.com. We will be uploading the Financial Results on the Stock Exchanges websites: BSE Limited (www.bseindia.com) and National Stock Exchange of India Limited (www.nseindia.com). Sasken Communication Technologies ltd. 13925, Dol ing Ro Begs 550 071, Insasken 2. Reviving the Petition pertaining to Scheme of Amalgamation of Sasken Network Engineering Ltd. the wholly owned subsidiary of the Company with the Company. The Board noted that the Board of Directors of Sasken Network Engineering Ltd., the wholly owned subsidiary of the Company decided to revive the Petition pertaining to Scheme of Amalgamation of Sasken Network Engineering Ltd., the wholly owned subsidiary of the Company with the Company, which was withdrawn on December 9, 2016. Thanking you, Yours faithfully For Sasken Communication Technologies Ltd. S. Prasad Associate Vice President & Company Secretary Encl.su Concunkre NCA ELL FORTHEQUAKTER NO HME MONT AED DENN, 2016 a.m ata, Decntert, | sepeters, | oeenbera, | Oxamtera, | onenber 1 fete ron rats aannae | aera | a eer | ee hopes Workin ropes od Scene 1505) Ba Ce) 39) Enporetemtagese ser amas ama | ene parse erecitin aatatin xen ‘se ‘00 ‘won| wn) woas| {cx eens apa 225698 esim| asi osces0 at mes | ign | nae marze| paar ae > fron wnt ena, a ams} wece| ama reno ve E 4 encne ee zane 5 frst tne anna ea pn en 4h spas] samo] tatsan s2.0 7 pester race oat tlre etn ere sans] sams] saat aso canieraton i fgoment BRAN sans lero red penser mage erent t aves] re a) nent cf Sesinent ode ad tess F axss] 0 team ray ete fer 8) wa] sama] 9a a oa to [Taenpens to eri cair yeas we} Gost] saan rns] sae wna 1 eat rm Ory ees tet 0) tm | erst] yaisat saise| sar mans 12 ererdrryiten petal t exes) : 13 etpart rte pres 2 ranma) wns] anat aes ass7r mass 1 Ppsupeqty sae cata pe Ye ot es enh) sins) symm] 17.90 ume) sansa ase 1 sees xing emia res sisear| —saone| sass sisear| sass ems 16 [Eemeg Fer shire 95) pts On) [)sneand nee Petre eon ane fp toons afer Eceson tems199725, RNG ROAD, DOM, BANGALORE Sort ADTED CONSOLIDATED FAANCL RESULTS FORTHE QUIRTER AONE MGNTHS NOD OCONEE 1, 2016 8s nis) She ‘arr ened Tine was ees [Yew ede ‘esse | sepener 90,] Deca | December 3] Oscars, ] Waren 3 Tote fore eon oe is | “oe 1 [seamen evene [Stare seer tisipet) nama] aston] asss6] ganas 2 fittare roc Svoss|“sannn| ste] yaspar] 2m © fete 785, nos| wen aust| ama feo ane] Tapas |e. | Ha] asa Les: er segment revenae i ne stesncane rom Operas Tae) ines | ae] — ses | aa 2 [seamen Renate roto) blr a and ners tron cach sagen lattare entee rams) aaa! san] arinar|—aese| arose Ittare Proce wire) ana] tsi) ante) nna) tamat 2 [omer 337 ‘oz tat 2398, mae] an fe E96 | soe | sso | ape] gsr] Tapet ar es eects zat 1a 7 oa a] 18a ‘omerunaticbe swosar] sana] azenus] asa] gastso| azar ‘cxpendie pet ef enone come 1 Exhange as! a) com] as] asa an] gana} 25 at: ception inca expenses) ‘anit rset gts =| mano oc reponse a =| casas) Imosimen of vesiment/ andl an athe recshabies e 389) reat 9 roa reas) beta ox Tana | iss] iss | apa] ane | er 2 [capa ertoes [sameness footer seer namn| meas) vase) — rarer sas 8 car rete weet] men) ase) usa bss © lomee vu] soe 1876 [nati coprate ete naur| sez] awe sisser exe sab ont 1506590] 6459827 | —a007.78 | — 05005390 Beret Segent Labi, 1 |sotware Sees seit] eso] sas] sous ‘ os m6) ena] ants © mum] fave @ szon| suse] amn| sya Virieas| vista] 9.96855] — 1.74605 . sae] sass! on] ears & asm) 030) 4 ont cpu ste wssnse| onn| rem975| sso [ett capt empayes Sates | —szeees| — 38 623] 530008‘ASN COMMUNICATION TECHNOLOGIES LINTED “39/25, RNG ROAD, COMLUR, BANGALORE 550 07 ‘ADITED FRANCIA RESULTS FORTHE QUBTER AYO NINE NONTHS ENDED OECEMBER 3, 2016 re ‘quatre inert andee [Year ends Na ane ‘December, | Septenberst, | Decenberd, | acer | December ach 3 “ate nor 7015 ans "as “ate net sasha a Operations sea WGTRAT | T0200] 29.1300] 96,80. | a 923 2 entre a Cex of mater conten : bs Parchaes of Steck Trade : : changes in Workin Proges 15436 ean) asa wn] xin] — aaa. employe berets eens none rama) — 740438] 1.a6557| —aszzeer | anosnas| Je osprecaen ad anetatien expense 1.96 wan] ‘tese| eos} "os | steo4 omer expenses 743 16.33] 207800] saovat| —se7ase | a2sree frau 386 ‘9297.96 osha | Wass] —aeta.16 | 37.7008 3 form rom Operations fre Omer sn, France cots] 1.7) mst] ose] sevz8} 923) aes jad Exceptional ers 2), 4 [ether come 535.29) won| asa] 2073] 220.8) asm09 5 |rote eter fance cots and Exceptional ams (34) rat ness] ssz77|— gaas.n| tenet] Sotea4 [rane cots : 17 [prone arter trance cos but beter Exception tens (5:6) m8 soem] sea77 swsat] sree 8 |excetinat neame/ epee) |corseeratn fe Asmar of PRE = | assreso| Employee rated payments lies manogerlrminerton : : 88438] lors 7e4.2 at) Dieu nae of invests Subir oters é 948s 9 | rte rom Ortrany Actives betes ta 8) Tar a 10 fraxeroerce inet of reversals of earteryeus) esr sisaa] — saesa| sons] sato0| eossaa 11 ye Pot tom oranary aces ater tae 10) ns sar] ease] gszass| —aomer| 2090439 12 Jexaceinay tam ret of x expense) - - 13 |uee Pret forte pe 1-12) s.74| taso7:| sae} sz] aosner| 20,00420 14 Jat euty share capa (tr Vl of 10 each wns sonse| mise] arise] rrse| a7 15 eee excutng revaiation eres srazise ssmoos| —stamise) 200s | «,10329| 16 earings Per share (75) ot nats) ns.) acc nd sed Es beter xcept ers ae 46 rae ast 928 536 | 1964 tea 6 78 a4 ‘sian 536 | 19.64 >) asc and ded ES atr Exceptional Rams ose 406 r28 ase 1988 sas | sonst | oats 86 728 ase 988 135] sonst‘SASKEN COMMUNICATION TECHNOLOGIES LED 13975, RING RORD, DOMLUR, BANGALORE E0071 AUDITED FINANCIAL RESULT FORTHE QUARTER AND ENE MONTHS ENDED OECENBER 31,206, . (nats) we Guar ented Tine Nth ended Year ended December, | Septaber i, | Decerber i, | December 31, | Dscenber, | — Naren "16 206 205 ame ms 206 1+ |segmane Revenue a. ofevare Services 99053 seor] was} marr! sr 1b sovare Predits 5435 1340 nar 155.69 13.47 eat Ta Toarsar] ——wersz0v] ——a.as | ara een sept rvense et ste incae rom Operations Soa Toone | eens] | ae (Preys) tore tax and Interest tram each eer) | 2. iottware series 1.91.98 2a 038.28 7925.04 agro ann ©. evar Produce us 1577 ‘asa 733 ‘20.0 as. iott Tsar TF sana Ter a8 Wa les 9 France cats 1) Over uracable xpendtre 1385.4 som7 staan 340437 som. st esas net of nlc Income ‘iy change (snes (sn x69 casa avs 2053] nz Ie: exceptional nc /oxprses) [conser or sgrmento 1 Rhts aenso lestayeerlsnd porns incsudes marge (2824.30) Feraeraton ot Re 74 ats, lomnain inva of isestmare a cones fer oters fret Bsa [ott rot before ne Tar TE Wa aa ae Ex) 3 tanta enploed Kepment assets 2. fatwa servces s9r90 sonrse| — s0,71626 senso] 7426 soon. 5. stare Prose 237 98 60 2.7 660 oa fener Ulloa nets sara sems| ssma| ssanza| sna? 5207830 iso cat aT ‘a,04045 | ——aa,ass.a1 | 4475.88] 46,455.81 | 62,757.28 Isegrent Labor fe. (etvare eres 0823 097.95 436.2 se0a.23 4.0626 ota b.[stvare Powe 32 “aoe as 38.2 35 fer Unllceable Labs sr078 01013 sass? sr78 439.57 su eta Tiaa0.35 Tiss] ——,7enze | 19, 980333 capa emptoed seement Asset-Sgren Libuties 2. fortvare services 33067 emo 33667 eanse osa.09 8. eter Prods ras] ass) ‘05 cas ‘at fer Unatecabie Labs 30.00 x13490| _67000| __ssareo| _asasaat [retl Cepia tnployed Sno0357 3280435 | aon | 53.0938 | —7yravzon | .a7s27NOTES: 1) The above audited results were taken on record by the Board of Directors of the Company at its meeting held on January 18, 2017. 2) The results are based on the consolidated financial statements prepared by the Company's management in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Companies Act 2013. The standalone financial results are made available to the Stock Exchanges where the Company’s securities are listed and are posted on the Company's website www.sasken.com. 3), Following are the particulars of the Company (on a standalone basis): “Amount in RS. Lakhs ‘Quarter ended ‘Nine Months ended Year ended partcdars December September December December December March 31, 31,2016 30, 2016 31,205 31,2006 31,2015 2016 SjumoverSSS*«S* NS BB_—*10,073.47 10,452.09 29,139.09 30,080.99 40,192.40 Profit before Tax 799.01 1,666.03 962.77 4,425.01 4,169.61. 28,949.61 Profit after Tax 825.74 1,290.71 __626.24 3,823.15 3,038.61 20,894.39 4) The following amounts are due from/ (payable to) subsidiaries: Amount io Rs. Lakhs. ‘As at December 31, | As at March 31, Icompany 2016 2016 ‘Other Balances (Net) [Sasken Network Engineering Ltd. (77.90) (69-55) |sasken Communication Technologies Mexico S.A. de C.. (1.94) (1.90) Isasken Communication Technologies (Shanghai) Co. Ltd. (143.43) (139.90) lSasken Finland OY 76.13 7 [Sasken inc (421.39)| (67.31) 5) Exceptional_income/expenses During the previous year ended March 31, 2016, an arbitration proceeding was initiated by one of the customers of the Company and both parties had preferred certain claims. In March 2016, the two parties entered into a settlement agreement whereby both parties mutually agreed to stop the arbitration proceedings and the Company received a consideration of USD 45 million (equivalent to Rs, 29,812.50 lakhs) for assignment of its rights in the independently owned IPR and foreground information, which had been recognized as an exceptional item. Further, in relation to the above, a provision towards employee payments amounting to Rs. 2,100.00 lakhs and managerial remuneration amounting to Rs. 784.38 lakhs had also been recorded as an exceptional item. In the previous year, the Company had evaluated certain long term investments for the purpose of determination of potential diminution in value of investments and based on such evaluation and determination, a provision for diminution in the value of investment as at March 31, 2016 amounting to Rs. 3,594.85 lakhs/Rs.3,633.85 lakhs, respectively, had been recorded as an exceptional item in the standalone and consolidated financial statements. jSasken Inc., a wholly owned subsidiary, had evaluated its long term investment for the purpose of determination of potential diminution in value of investment and based on such evaluation and determination, a provision for diminution in the value of investment as at March 31, 2016 amounting to USD 5.064 million (Rs.3,393.98 lakhs) had been recorded as an exceptional item. 6). Sasken Network Engineering Ltd. (SNEL) had in April, 2016 filed a Petition in the Hon'ble High Court of Karnataka for its amalgamation with its holding company, viz. Sasken Communication Technologies Ltd. As the Company had initiated the process of buy-back of shares and in order to comply with the Regulation 19(2) of SEBI (buy-back of Securities) Regulations, 1998, SNEL had filed ‘a memo on December 9, 2016 in the Hon’ble High Court for withdrawal of the said Petition with a liberty to revive the Scheme at the same stage at which it was withdrawn, within 12 months from this date or 3 months of closure of the buy-back proposed by the Company, whichever fs earlier. The Hon’ble High Court permitted to withdraw the Company petition with a liberty to file it afresh at appropriate stage, if so necessary and so advised. 7) Pursuant to the approval of the Board of Directors on October 27, 2016 and Shareholders by way of Postal Ballot on 23° December, 2016, the Company has made a Public Announcement on December 26, 2016 for the buy-back of up to 29,27,879 equity shares of Rs.10 each at a price not exceeding Rs.410 per share for an aggregate maximum amount up to Rs.12,004.31 lakhs in accordance with the Securities and Exchange Board of India (Buy-back of Securities) Regulations 1998 as amended (the ‘Regulations”). ‘The Company has also filed a Draft Letter of Offer with Securities & Exchange Board of India on: December 28, 2016. The Company will commence the buy-back on receipt of comments from SEBI in accordance with the Regulations. 8) The shareholders by way of Postal Ballot on December 23, 2016 have approved changing the name of the Company to “Sasken Technologies Limited”. The Company has received in-principle approval of BSE Limited and National Stock Exchange of India Limited, The Company has since filed an application with the Ministry of Corporate Affairs seeking their approval for the said change of name and the same is awaited. 9) During the quarter, the Company completed its disinvestment of its holding of 1,44,73,846 fully paid-up equity shares of Rs.10 each in the capital of joint venture company, ConnectM Technology Solutions Private Limited. 10) The shareholders by way of Postal Ballot on December 23, 2016 have approved the proposal of creating Sasken Employees Share Based Incentive Plan 2016 not exceeding 5% of the paid up capital of the Company as of March 31, 2016, subject to approval of other regulatory authorities. 11) Previous period/year figures have been re-grouped/re-arranged, wherever necessary to conform to the current period's/year's presentation. Place: Bengaluru Date: January 18, 201712th 13th Floor S.R. BATLIBOI & ASSOCIATES LLP UP chy canberra Block ‘Chartered Accountants Bengairs60 004, Tel :491 806727 5000 Fai 600 Auditor’s Report on Quarterly Consolidated Financial Results and Consolidated’ Vear-to Date Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 To, Board of Directors of Sasken Communication Technologies Limited 1. We have audited the quarterly consolidated financial results of Sasken Communication Technologies Limited for the quarter ended December 31, 2016 and the consolidated year to date results for the period April 1, 2016 to December 31, 2016, attached herewith, being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. These consolidated quarterly financial results as well as the consolidated year to date financial results have been prepared from consolidated interim financial statements, which are the responsibility of the ‘Company's management and has been approved by the Board of Directors. Our responsibility is to express an opinion on these consolidated financial results based on our audit of such consolidated interim financial slatements, which have been prepared in accordance with recognition and measurement principles laid down in Accounting Standard 25 “Interim Financial Reporting”, specified under section 133 of the ‘Companies Act. 2013 read with relevant rules issued thereunder and other accounting principles generally sted in India 2. We conducted our audit in accordance with the auditing standards generally accepted in India. ‘Those standard require that we plan and perform the audit to obtain reasonable assurance about whether the financial results are free of material misstatement(s). An audit includes examining, on atest basis, evidence supporting the amounts disclosed as financial results, An audit also includes assessing the accounting, principles used and significant estimates made by management. We believe that our audit provides a Feasonable basis for our opinion, 3. We did not audit the financial statements of two subsidiaries included in the consolidated quarterly financial Fesults and consolidated year to date results, whose consolidated interim financial statements reflect total assets of Rs. 2,665.78 lakhs as at December 31, 2016; as well as the total revenues (including other income) of Rs. 3,868.06 lakhs for nine month period ended December 31, 2016 and Rs. 1,432.38 lakhs for the (quarter ended December 31, 2016. These interim financial statements and other financial information have been audited by other auditors whose reports have been furnished to us, and our opinion on the quarterly Financial results and the year to date results, to the extent they have been derived from such interim Financial Statements is based solely on the report of such other auditors, 4. In our opinion and to the best of our information and according to the explanations given to us these consolidated quarterly financial results as well as the consolidated year to date results (i) include the quarterly financial results of the following entities: a) Sasken Communication Technologies Limited (Sasken’ or “the Company"), 'b)_Sasken Network Engineering Limited (‘SNEL’) ©) Sasken Communication Technologies Mexico, S.A. De C.V (‘Sasken Mexico’) )_ Sasken Communication Technologies (Shanghai) Co. Ltd. (‘Sasken China’), ©) Sasken Finland Oy (‘Sasken Finland”), 1) Sasken Inc. USA (Sasken. USA). and 8) ConneetM Technology Solutions Pvt. Lid (*ConnectM") (ii) have been presented in accordance with the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, in tis regards and (iii) give a tre and fair view of the consolidated net profit and other financial information for the quarter ended December 31. 2016 as well as the consolidated year to date results for the period from April 1. 2016 to December 31. 2016,S.R. BATLIBO! & Associates LLP Chartered Accountants Other Matter . ‘The accompanying interim consolidated financial statements include total assets of Rs. Nil as at December 31 2016 and total revenues (including other income) of Rs. 169.04 lakhs for nine month period ended December 31. 2016 and Rs. 39.87 lakhs for the quarter ended December 31, 2016 in respect of one jointly controlled entity, which has not been audited, which unaudited interim financial statements and other unaudited financial information have been furnished to us. Our opinion, in so far as it relates to the amounts and disclosures included in respect ofthe jointly controlled entity is based solely on such unaudited interim Financial statements and other unaudited financial information. In our opinion and according to the information and explanations given to us by the Management, these interim financial statements and other financial information are not material to the Group. For S.R. BATLIBOI & ASSOCIATES LLP ICAI Firm Registration Number: 101049W/E300004 Chartered Accountants per Chandra Kumar Rampuria Partner Membership No. 055729 Place: Bengaluru Date: January 18, 2017S.R. BATLIBOI & Associates LLP AEB Ei Caner tick No. 24, Vii Malva Roas eee ee Bengaiuru-s60 004, ina Tel :+91 80.6727 $000 Fax; $31 80 2210 6000 Auditor’s Report On Quarterly Financial Results and Year to Date Results of the Company, Pursuant fo the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 To Board of Directors of Sasken Communication Technologies Limited |. We have audited the quarterly financial results of Sasken Communication Technologies Limited for the quarter ended December 31, 2016 and the year to date results for the period from April 1 2016 to December 31, 2016, attached herewith, being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. These quarterly financial results as well as the year to date financial results, have been prepared on the basis ofthe interim financial statements, which are the responsibility of the Company's management and have been approved by the Board of Directors. Our responsibility is to express an opinion on these financial results based on our audit of such interim financial statements, prepared in accordance with recognition and measurement principles laid down in Accounting Standard 25 “Interim Financial Reporting”, specified under section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India 2. We conducted our audit in accordance with the auditing standards generally accepted in India ‘Those standards require that we plan and perform the audit to obtain reasonable assurance about ‘whether the financial results ae free of material misstatement(s). An audit includes examining, on atest basis, evidence supporting the amounts disclosed as financial results, An audit also includes assessing the accounting principles used and significant estimates mace by management. We believe that our audit provides a reasonable basis for our opinion. 3. In our opinion and to the best of our information and according to the explanations given to us these quarterly financial results as well as year to date results: i, are presented in accordance with the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, in this regard; and ii, give a tue and fair view of the net profit and other financial information for the quarter ended December 31, 2016 as well as year to date results for the period from April 1, 2016 to December 31, 2016. For S.R. BATLIBOI & ASSOCIATES LLP ICAI Firm Registration Number: 101049 W/E300004 Chartered Accountants Sead (of per Chandra Kumar Rampuria Partner Membership No.: 055729 Place: Bengaluru Date: January 18, 2017sasken Media Release - FOR IMMEDIATE RELEASE 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: 03 FY 17 + Consolidated Revenues for Q3 FY 17 at @ 117.11 Crore ‘© Down 6.2 % sequentially over the previous quarter © Down 12.0 % YoY from Q3 FY 16 + Consolidated EBIDTA for Q3 FY 17 at 2 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 X 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 website www. sasken.com ‘About Sasken: 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, 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 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 visit www.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 assoclated with our expectations with respect to, Dut 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 politcal condition in india which have an impact on out business activities or investments, changes inthe laws and regulations that appy 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 Inala, inflation, deflation, unanticipated turbulence in interest rates, foreign exchange rates, equity prices or other rates or prices, the performance ofthe financiak markets in India and globally, changes in domestic and foreign laws, regulations and taxes and ehanges in competition in the Information technology’ telecommunication industries. Adetional risks that could affect our future operating results ‘are more fully described in our Red herring fing. The company does not undertake to update any forward-\ooking statement that may be made from time to time by or an Behalf of the Company. ‘Spokesperson: ‘Swami Krishnan VP Corporate Communication & EE E: pr@sasken.com Ti 991 9743979264atte ay eee sasin ste, ecg ree ers nn nal onal ont onal nat esl rare| ra | mevens i rec On on ean aren On on) lene Poe Tp Gres (i onDear Analyst, It is my pleasure to highlight the business performance of the Sasken Group for the third quarter ended 31st December 2016. We must point out that certain statements made here or those we make subsequently in response to your queries concerning our future growth prospects are forward-looking statements. Please read the Safe Harbor clause in the second slide of our presentation for full details. Let me begin by walking you through our financials for the Third Quarter for Fiscal 2017. In the Third Quarter of Fiscal ‘17 the consolidated revenues for the Sasken Group decreased by 6.2% over the previous quarter to Rs. 111.11 crores. Consolidated Earnings before Interest, Depreciation, Taxes and Amortization cost for the third quarter fiscal ‘17 were Rs. 4.37 crores, a decrease of 45.8% sequentially. In percentage terms, the consolidated EBIDTA margin stood at 3.9%. Consolidated PAT for Q3 fiscal ‘17 was at Rs. 12.93 crores, up by 35% over the previous quarter. PAT margins for the quarter were 11.6%. Consolidated earnings per share for the 3" quarter were Rs. 7.30. Cash and cash equivalents were Rs. 401.96 crores as of December 31%, 2016. Business operations This quarter has been a defining one for us on several counts. On the business front while there are sufficient opportunities our work is inherently both complex and on leading edge technology platforms. Wehave faced some challenges in a few ‘fixed price programs’, as well as ramp downs from a few key customers which has muted our growth this quarter. We are confident that our resilient and robust management will tide over this. We have made significant investments to bolster our sales and customer facing teams in the United States. We have on-boarded several people who are well respected in the industry to lead our 5X5 vision which will set us on the path of scalable and profitable growth. | will now provide key highlights related to our services business. Our combined strength in semiconductors and the Android ecosystem has established us a leader in providing a suite of product engineering services for smart & rugged devices. A testimony to that is evident in our successful execution of several First Of A Kind (FOAK) upgrades. Our knowledge of semiconductor platforms is a key differentiator as we are able to execute programs with little or no support from the semiconductor vendors. In the Connected & Smart Home space we are engaged in a number of projects to build state of the art products and services. We are combining our expertise in software and hardware to help customers build product reference designs that are ready for commercialization. Some of the products developed by us with Voice based recognition have been showcased by our customers in CES, Las Vegas, which is the premier show for Consumer Electronics. In the industrial automation space, we are strengthening our existing engagements while continuing to win business from new customers. Weare engaged with a leading industrial equipment manufacturer to enhance the communication efficiency of a master-daisy chained slave robotic assembly system. In the automotive space, we continue to widen both our customer base and repertoire of offerings. We have expanded our footprint in Japan with a new win from a leading Japanese/German Automotive Tier1. Our software comprising multimedia codecs and other components will be deployed on their core platform and be an Integral part of all products launched from MY19 (Model Year) onwards. We are enhancing our Solutions including Android based IVI which is now set to become an integral part of high-end automobiles. Our solutions will help OEMs achieve significant reduction in time to market and de-risk their product development efforts. Additionally, we have solutions that address the need for ECU Consolidation especially those targeting the cockpit. These solutions will help OEMs reduce cost and complexity using an optimal mix of proprietary and open-source platforms. On the IOT front our solutions target growth areas such as telematics, trace and track, industrial loT and home automation. Our work helps customers build home gateway incorporating advanced Voice activation features, cloud & sensor based track and trace solutions for logistics, vehicle monitoring telematics solutions supporting Long Term Evolution or 4G networks.Our continued ability to win and execute projects in the ‘product engineering space’ and panache to solve complex engineering problems for marquee customers worldwide is a clear differentiator and is valued in the markets in which we operate. In the Digital Transformation domain, Digital Platform Engineering is emerging as a critical component as enterprises invest in building out new platforms to support their foray into Digital. This quarter, we won a large engagement to develop a ‘digital platform’ for the North America market; this platform will bring together service providers (or sellers) and match them to buyers (or consumers) through the convenience of a mobile app, based on location. We continued to build out a mobile app suite for the urban commuter, improving user convenience and adding support for sophisticated fare models, for a European conglomerate. In the Physical to Digital (P2D) space, we were active participants at the Internet of Things World conference in Dublin this quarter; This was an opportunity to showcase a variety of Sasken’s solutions for loT and Digital, and Sasken leaders were invited as speakers to share learnings with a global audience in the area of data analytics and connected cars. People On the people front, the headcount for the Sasken Group stood at 1,976 as of December 31%, 2016. We continue to attract and add talent comprising both freshers and laterals in keeping with our business needs. Our people initiatives include programs for enhancing employeeengagement, retention and development. While our trailing twelve month attrition is lower at 21.98%, our quarterly annualized attrition has seen a sharp drop from 24% to 19.2%. In other words, we had significantly lower exits in this quarter. We will continue to make progress to further stem our attrition in the coming quarters. Utilization for the quarter averaged 78.7% and is expected to be around the same percentage in the coming quarters. Customers We have successfully added 6 customers during the quarter taking the active number of customers to 138. We thank you for your interest in Sasken and your continued support. My and | are-committed to always hold all our stakeholders in trust. Rajiv CMody. Chairman, Man&ging Director and CEO Sasken Communication Technologies Limited