Sasken Comm down in the red

Sasken Communication performance for Q4FY16 has not enthused the market. In fact there is major disappointment as the stock price is down currently 4.5% down at Rs.346 levels and this is after going down over 6% intra day to a low of Rs.340.20.

The company, for Q4FY16 posted a whopping consolidated net profit of Rs.175 crore v/s Rs.11 crore (QoQ) and this was on a 5% drop in topline at Rs.119 crore. Thus this major jump in the net profit is only thanks to the exceptional gain of Rs.298 crore. The company had reached a settlement in arbitration proceedings with one of its customers and this money is the consideration that it received. for assignment of its rights in the independently-owned IPR. But for this gain, the performance of the company was not good and that is probably what the market is concentrating on.