Saksoft Ltd: Crunching Numbers

Saksoft (SL) is an Information Management specialist in the IT industry. Its services span across consulting, data warehouse building, analytics layer and tool implementation. The company posted encouraging numbers in the September quarter of FY14. 

On a sequential basis, SL reported a growth of 13.85 per cent in its consolidated net sales, which touched Rs 59.91 crore. Its bottomline also went up by 34.6 per cent to Rs 4.47 crore. 

The company’s operating expenses increased by 11.7 per cent on a QoQ basis, which was primarily due to the increase in its Other Expenses. The employee expenses also saw a rise, though it dipped as a percentage of revenues compared to the previous quarter. Its operating income came in at Rs 7.52 crore, up by 47 per cent on a sequential basis.

On a yearly basis, the revenues surged by 59 per cent as against Rs 37.67 crore in Q2FY13. Its net profit came in at Rs 4.5 crore on a YoY basis, marking a growth of 76 per cent. The company’s EBITDA surged by 45 per cent from Rs 4.6 crore to Rs 6.7 crore. 

The growth in revenue has boosted the margins too. During the quarter, SL’s EBITDA margin grew by 270 basis points and the net margin grew by 107 basis points, at 12.37 per cent and 7.36 per cent respectively. 

Commenting on Q2FY14 result, the company’s Managing Director said, “We have had a great quarter, current clients renewed their contracts and have committed more business. Revival of some past relationships has started showing its impact on revenue and profits. Information Management continues to be the focus and drives the company’s directions for meeting its stated objectives”. 

In the results announcement, the company also reported that it has added eight new clients to its list. Presently, SL has 125 names on its client list. In addition, top two clients of the company have renewed their contracts, which would result in higher business volumes.