Mumbai: “Telecom products and software services firm Sasken Communication Technologies Ltd sees a 10% rise in dollar revenue in the current financial year,” a top official said on Thursday.
“Right now we are not seeing much of a slowdown. We are feeling some pressure on the network equipment side but we should be able to grow at 10% this year in dollar terms and in rupee terms it will be higher,” Chairman and CEO Rajiv Mody said after announcing the quarterly results.
Sasken’s consolidated net profit for the quarter to September decreased 28% to Rs103.7 million, while revenue rose 23% to Rs1.76 billion.
“The dip in profit was mainly due to loss of Rs135 million on foreign exchange hedges,” Mody said. The company has $70 million worth of forex hedges.
On the products side, which contributed about 12% to revenue, the company saw good growth momentum, “but the market environment for our services business remains challenging,” Mody added.
“The second quarter has been slightly lower and slower for us but we see better business in the future quarters,” Mody said.
During the quarter, Sasken added 11 customers taking the total to 96 clients.
The company derives about 40% of revenue each from the US and Europe.
Shares in the company ended down 5.3% at Rs93 in a weak Mumbai market.