Sonata Net At Rs. 79.63 Millions

Bangalore, July 12, 2001

The Board of Directors of Sonata at a meeting held here today adopted the audited accounts for the quarter ended 30th June 2001.

Announcing the results, Mr. B.Ramaswamy, President & Managing Director of Sonata said, "In view of the slowdown in the U.S. market the Company has adopted a three pronged strategy - Increased focus in Europe, Revamping of offerings and Thrust on enterprise solutions. The first strategy has started showing results in as much as 39% of the revenue in the current quarter came from Europe as compared to 20% in the same quarter last year and 25% in the quarter 4 of financial year 2001. Revamping of offering and the thrust on enterprise solutions will show positive results in the next couple of quarters."

Performance for the quarter ended 30th June 2001

		(Figures in Rs. Million)
	@SITL	SONATA	SONATA & SITL	SONATA
	Quarter Ended On 30.06.2001	Quarter Ended On 30.06.2001	Quarter Ended On 30.06.2001	Quarter Ended On 30.06.2000
1. Sales & Services
International Operations	-	242.82	242.82	241.70
Indian Operations	275.68	-	275.68	156.19
Total Sales & Services	275.68	242.82	518.50	397.89
2. Other Income	1.45	14.89	16.34	9.51
3. Total Income	277.13	257.71	534.84	407.40
4. Expenditure
a) Purchase of traded items	251.25	-	251.25	129.12
b) Increase/Decrease in stock in trade	(22.36)	(4.45)	(26.81)	(7.37)
c) Staff Cost	11.80	53.43	65.23	50.21
d) Other Operating Expenses	31.66	119.33	150.99	142.95
Total Expenditure	272.35	168.31	440.66	314.91
5. Profit before Interest, Depreciation & Tax	4.78	89.40	94.18	92.49
6. Interest	0.62	-	0.62	0.09
7. Gross Profit after Interest but before depreciation and tax	4.16	89.40	93.56	92.40
8. Depreciation	0.60	7.77	8.37	9.73
9. Provision for taxation	1.50	2.00	3.50	3.50
10.NET Profit	2.06	79.63	81.69	79.17

Sonata Information Technology Limited (The Indian Operations of Sonata Software Limited) was spun off into a wholly owned subsidiary with effect from 29th June 2000. On account of this, the figures of Sonata for the quarter ended 30th June, 2001 will pertain only to the International Operations. The performance of Indian Operations is reflected in SITL for the Quarter ended 30th June 2001. For the previous year's Quarter ended June 2000 Sonata's figures include both Indian and International Operations.)