Sonata declares First Quarter Results - Net increases by 45% over the quarter last year.

Mumbai, July 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 ended 30th June 2004.

Sonata Software Limited consolidated Revenue was Rs. 788.33 million for the quarter ended 30 June 2004 as compared to Rs. 482.36 million for the same quarter last year. PAT was at Rs. 43.21 million for the quarter ended 30 June 2004 as compared to Rs. 21.18 million for the same quarter last year.

Speaking on the occasion, Mr. B. Ramaswamy, President & Managing Director stated, "The growth in this quarter has been the result of a conscious strategy to build scalable relationships with customers. Spurred by the success of this strategy, we are expanding operations with a third developmental centre in Bangalore & increasing the headcount".

HIGHLIGHTS

Sonata Software Limited Q1 ending 30 June 2004 - Quarter on Quarter Comparison
Rs. In Millions
	Quarter ended		Growth %
	30.06.04	30.06.03
Revenue	238.10	187.20	27%
Profit Before Tax	41.03	27.43	50%
Profit After Tax	36.90	25.42	45%

Sonata Software Limited Q1 ending 30 June 2004 - Sequential Comparison
Rs. In Millions
	Quarter ended		Growth %
	30.06.04	30.06.04
Revenue	238.10	203.07	17%
Profit Before Tax	41.03	34.58	19%
Profit After Tax	36.90	33.15	11%

Segment Revenue Q1 ending 30 June 2004 - Quarter on Quarter Comparison
Rs. In Millions
	Quarter ended		Growth %
	30.06.04	31.03.04
Domestic (Sales & Services)	498.01	279.61	78%
International (Software Service Exports)	324.21	207.38	56%
Total	822.22	486.99	69%

Operating Highlights for the Quarter ended 30 June 2004

 

•   Six new clients were added during the Quarter.
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•   The geographical spread was USA 33%, Europe 66% & Rest of World 1%.
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•   Cash generation from operations for the Quarter ended is Rs.68.40 Million.
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•   During the quarter the Company added 123 employees.
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•   The Third Development Centre was set up at a cash outlay of Rs.65 Million.
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•   Receivables as number of day's sales have reduced to 105 days from 126 days.
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•   Winner of Microsoft Customer Appreciation Award 2004 Partner Program Awards in Toronto.