Sonata declares Second Quarter Results

Sonata declares Second Quarter Results - Sonata net up 49% - Increases Interim Dividend to 30%
Mumbai, October 26, 2004.

The Board of Directors, at its meeting held here today, took on record the Audited Accounts of Sonata Software Ltd for the Quarter & Half Year ended 30th September 2004. The Board declared an Interim Dividend of 30% as against 20% declared in the previous year.

Sonata Software Limited consolidated Revenue was Rs. 812.14 million for the Quarter ended 30 September 2004 as compared to Rs. 492.37 million for the same Quarter last year. PAT was at Rs. 39.03 million for the Quarter ended 30 September 2004 as compared to Rs. 24.72 million for the same Quarter last year.

Speaking on the occasion, Mr. B. Ramaswamy, President & Managing Director stated, "We had a good quarter in terms of growth. Even more exciting is the opportunity ahead of us to significantly scale up the relationship with existing customers and work in new technology areas"

HIGHLIGHTS

Sonata Software Limited Q2 ending 30 Sept 2004 - Quarter on Quarter Comparison
Rs. In Millions
	Quarter ended		Growth %
	30.09.04	30.09.03
Revenue	242.64	154.83	57%
Profit Before Tax	45.19	30.75	47%
Profit After Tax	39.65	26.69	49%

Sonata Software Limited Q2 ending 30 Sept 2004 - Sequential Comparison
Rs. In Millions
	Quarter ended		Growth %
	30.09.04	30.06.04
Revenue	242.64	203.98	19%
Profit Before Tax	45.19	41.03	10%
Profit After Tax	39.65	39.65	7%

Segment Revenue-Consolidated Q2 ending 30 Sept 2004 - Quarter on Quarter Comparison
Rs. In Millions
	Quarter ended		Growth %
	30.09.04	30.09.03
Domestic (Sales & Services)	478.17	315.89	51%
International (Software Service Exports)	333.97	176.48	89%
Total	812.14	492.37	65%

Segment Revenue-Consolidated Q2 ending 30 Sept 2004 - Sequential Comparison
Rs. In Millions
	Quarter ended		Growth %
	30.09.04	30.06.04
Domestic (Sales & Services)	478.17	497.76	4%
International (Software Service Exports)	333.97	290.57	15%
Total	812.14	290.57	3%

Operating Highlights for the Quarter ended 30 Sept 2004

• Four new clients were added during the Quarter.
• The geographical spread was USA 53% & Europe 47%.
• Cash generation from operations for the Quarter ended is Rs.55.09 million.
• The Company added 145 employees during the quarter, taking the total to 1191.
• Receivables as number of day's sales have reduced from 105 to 89 days.
• The Company acquired & established a wholly owned subsidiary in Germany.
• The Company has initiated steps to establish a Software development & disaster recovery center of around 78,000 Sq .Ft at Hyderabad.