Sonata declares Fourth Quarter Results

Sonata Announces FY06 IV quarter and Year-ended March 2006 results......... Final dividend 60%. Total Dividend at 100%, Revenue growth at 54%
Mumbai , April 24, 2006.

The Board of Directors, at its meeting held here today, took on record the Audited Accounts of Sonata Software Ltd for the Quarter & Year ended 31st March 2006.

The Company's consolidated revenue was Rs. 5070.31 million for the year ended 31st March 2006, as compared to Rs. 3293.07 million for the previous year, an increase of 54%. PAT before exceptional items, was Rs. 275.41 million for the year ended 31st March 2006, as compared to Rs. 160.87 million for the previous year, an increase of 71 %.

Speaking on the occasion, Mr. B. Ramaswamy, President & Managing Director stated "Growth during the year is a result of the focused strategy for organic growth, executed over the last three years. Demonstrating business value to customers, through differentiated solutions and partnership, has been and will be the driver for sustained growth."

Sonata Software Limited Q4 ending 31st March 2006 - Year on Year Comparison
Rs. in Millions
	Quarter ended		Growth %
	31.03.06	31.03.05
Revenue	412.08	270.64	52%
Profit Before Tax	88.50	49.95	77%
Profit After Tax before exceptional items	83.04	45.20	84%

Sonata Software Limited Year ending 31st March 2006 - Comparison
Rs. in Millions
	Year ended		Growth %
	31.03.06	31.03.05
Revenue	1486.74	970.10	53%
Profit Before Tax	289.59	183.47	58%
Profit After Tax before exceptional items	261.60	164.00	60%

Exceptional Items of Rs.183.80 million (net of tax) comprises Rs. 93.39 million, on account of Investments written off pertaining to investment in SpinAway eBusiness Solution Inc., USA and Rs. 21.96 million pertain to investment in Abisko Development Limited, Cyprus. After reviewing the current position of these companies and their prospects, it was decided by the board of Directors of Sonata to write off these investments. During the current year, the Company has settled through arbitration in UK , Rs. 68.45 million (Net of Tax), relating to professional charges.

The Board decided to write off these exceptional items from the balance sheet as a one time charge.

Sonata Software Limited- Consolidated Quarter ending 31st March 2006 - Year on Year Comparison
Rs. in Millions
	Quarter ended		Growth %
	31.03.06	31.03.05
Revenue	1803.41	815.76	121%
Profit Before Tax	96.07	53.47	80%
Profit After Tax before exceptional items	77.78	45.38	71%

Sonata Software Limited- Consolidated Year ending 31st March 2006 - Comparison
Rs. in Millions
	Year ended		Growth %
	31.03.06	31.03.05
Revenue	5070.31	3,293.07	54%
Profit Before Tax	326.52	192.42	70%
Profit After Tax before exceptional items	275.41	160.87	71%

Segment Revenue & Results- Consolidated Year ending 31st March 2006 - Comparison
Rs. in Millions
	Year ended		Growth %
	31.03.06	31.03.05
REVENUE
Domestic (Sales & Services)	3360.78	2005.03	68%
International (Software Service Exports)	1709.53	1288.03	33%
Total	5070.31	3,293.07	54%
PBT
Domestic (Sales & Services)	31.39	27.17	16%
International (Software Service Exports)	295.13	165.25	79%
Total	326.52	192.42	70%
PAT before exceptional items
Domestic (Sales & Services)	18.78	17.21	9%
International (Software Service Exports)	256.63	143.66	79%
Total	275.41	160.87	71%

Operating Highlights for the Year ended 31 March 2006

•  Cash generation from operations for the year was Rs. 349.3 million

•  Net cash as on 31st march 2006 was Rs. 435.3 million

•  The Consolidated cash generation from operations was Rs. 672.6 million

•  The Consolidated net cash as on 31st March was Rs. 646.6 million

•  Twenty two new clients were added during the year.

•  The geographical spread was USA 45% & Europe 55%.

•  Receivables as number of day's sales have reduced from 92 to 78 days.

•  The Company has been allotted 8 acres of land at Poppalguda, Hyderabad by the Government of Andhra Pradesh for setting up an IT Campus.