Debasis Mohapatra
Bengaluru, 6 September
ER&D firm, Sasken Technologies is hopeful of improving its operating margin in the coming quarters despite near-term headwinds.
The company, which has improved its performance in Q1 of FY25, also said it is making several strategic investments to increase wallet share from its client base.
“Although in short-term, we may see decline in EBIT margins, as we are making significant investments in enhancing our capacity and capabilities to meet growing market demand. Aligned to our 60x4x3 strategy, we are focused on strengthening customer relationships to increase our wallet share, expanding our sales team to better serve clients, and driving revenue growth. While lower margins are expected in the near term, we are confident that these strategic investments will enable sustainable margin improvement and growth. As revenue volumes increase, we foresee steady margin improvements,” Rajiv C. Mody, Chairperson, MD & CEO of Sasken Technologies told the analysts post announcement of its first quarter result. (April-June period of FY25).
During the first quarter, Sasken Tech secured deals worth $11.5 million, which included new orders of $9.9 million.
The engineering services company said that the Indian two-wheeler E-scooters market continued to grow at a fast pace on the back of government policies.
“Sasken is working very closely with leading 2-wheelers OEMs to accelerate technological adoption with focus on solution for green initiatives aligned to their sustainability charter, advance digital connected cluster, navigation, and cloud platform services,” the company said.
In the satellite segment, the company said 3GPP Release 17/18 integrated NTN access into the 5G system. This release extends IoT and Machine-Type Communication (MTC) support, including satellite coverage along with introduction of new topics such as AI/ML, XR/VR/AR, and energy efficiency. The inclusion of NTN access in the 5G system enables new services like voice, image, video, and higher data rates, beyond emergency and text messages using the NTN system, it said.
“These new developments will open-up new opportunities for Sasken. This quarter, Sasken engaged in NTN system development with an NTN system supplier and began contributing to VSAT system development, designing multiple components for LEO constellation for a satellite operator,” the company said.
The company also said that it was witnessing traction in Gen AI based services in the digital space.
