Q1 2027 Saksoft Ltd Earnings Call Transcript
Key Points
- Revenue remained stable year-over-year at INR249 crores, with EBITDA margins holding steady at 18.26%.
- The company is strategically shifting towards outcome-based and managed services, which are larger deals and improve long-term growth prospects.
- AI integration across engineering and managed services is driving productivity gains, with 30-50% efficiency improvements in engineering and 20-30% in managed services.
- The pipeline has improved to $28 million, up from $25 million, and the company added a significant new client in the logistics/airline sector.
- Employee utilization remains healthy at 83%, and the company is reducing headcount through AI-driven operational efficiencies, which should lower employee costs as a percentage of revenue over time.
- Demand softness continues, with cautious customer decision-making and delayed deal conversions, leading to a muted outlook for the next quarter.
- Revenue growth is flat, and the company maintains its FY27 guidance of INR1,200-1,250 crores, which implies a significant acceleration in the second half that may be challenging.
- The digital commerce vertical is experiencing the most headwinds, and the company is deliberately letting go of non-strategic accounts, which could pressure near-term revenue.
- The shift to outcome-based deals is causing short-term pain, as these deals take longer to materialize, and the company acknowledges that growth will not happen overnight.
- Top client concentration remains high at 56% for the top 10 clients, and the number of $1 million+ clients is flat at 16, reflecting the lack of growth.
Ladies and Gentlemen, good day and welcome to SacSoft Limited Q1 FY27 Earnings Conference Call hosted by Monarch Network Capital Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes.
Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Vinay Menon from Monarch Network Capital Limited.
Thank you and over to you sir.
Hi, good afternoon everyone and thank you for the opportunity.
I welcome you to Saxoft's Q1 FY27 earnings call. With us we have the senior management of the company. We have Mr. Aditya Krishna who is the managing director of the company, Avantika Krishna who is the executive director and Mr. Niresh Kumar who is the COO and CFO of the company. Now I hand over the call to Mr. Aditya
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