Sonata Reports Strong Q2 Results; Consolidated Net Profits up by 81% YoY; Declares Interim Dividend of 50%

Mumbai, October 14, 2008

 

Sonata Software Limited today reported its financial results for the second quarter of fiscal 2009, ended September 30, 2008.

 

Highlights of the Results for the quarter ended September 30, 2008 :

 

 

Performance for the Quarter :

 

Commenting on the results, Mr.B.Ramaswamy, President and Managing Director, Sonata Software Limited said, "Consistent growth over the past several quarters is a reflection of the quality of our customer base, our differentiated & value added offering and the deep relationships we have been able to establish with our customers. Our focus on travel vertical and outsourced product development provides better visibility of Revenues in this uncertain environment."

 

Significant Projects :

 

Sonata is helping a large ocean carrier of dry cargo to the Middle East to manage both functional and non-functional testing of their product. Built in Java environment, the customer's application provides online cargo bookings, tracks and traces their shipments and receives electronic bills of lading. Sonata is helping the customer identify the performance bottlenecks in the application and improve their customer service. Sonata's proprietary test automation framework, SonnetTest, ensures the customer releases more features in a shorter time window

.

For a Norwegian Systems Integrator, who is primarily into developing identity management and digital signature solutions, we are developing a whistle-blower solution . This solution is being developed based upon Software as Service-SaaS model and will fully comply with OWASP's top 10 security threats. Application is based upon JEE platform. Sonata's solution includes selecting the appropriate technology platform, providing the Architecture based upon multi-tenant implementation to final deployment.

 

Sonata is building a solution for Service Configuration and provisioning for a major telecommunications operator. This solution offered as an automated system that provides provisioning support for services like ADSL, POTS, ISDN, POTS+ADSL, ISDN+ADSL. This will significantly enhance Service Configuration and Provisioning, Network Inventory Management, and Trouble Ticket Management. The proposed solution will significantly reduce the maintenance costs and time, and will provide the customers and operators with enhanced user experience.

 

For one of Europe's largest tour operator, we are developing an integrated payment project that complies to PCI DSS (Payment Card Industry Data Security Standards). All merchants that store and transmit card details have to comply to these standards. Our customer owns multiple high volume websites, each with its own payment module. To ease compliance, a common payment module that will integrate with all websites is being developed by Sonata.

 

Sonata is partnering with a leading Business Process Management service provider for the US Insurance industry to develop new generation Insurance Technology tools. For an industry that has to constantly keep pace with statutory requirements, such tools significantly reduce maintenance cost, time to process and human errors. Based on Microsoft Open XML, Word Add-Ins using Microsoft VSTO (Visual Studio For Office), WPF (Windows Presentation Foundation) and WCF (Windows Communication Foundation), Sonata's solution empowers employees to directly author, publish, preview and print any changes necessitated by statutory requirements. The solution leverages Sonata's QA+ methodology which focuses on delivering business value early by measuring the earned business value in each delivery sprint.

 

Financial Results

 

Revenue                                                                                                                                                                           (Rs. in Crs.)
	Quarter 2 08-09	Half Year 08-09
International	247.98	487.15
Domestic	170.69	337.14
Consolidated*	418.67	824.29
International
Sonata Software Limited	60.00	115.35
ODSi	14.48	27.36
Sonata Software GmbH	3.54	5.42
Sonata Europe Limited	0.29	0.76
TUI InfoTec GmbH	193.02	382.17
Domestic
SITL	171.14	337.59

PROFIT AFTER TAX                                                                                                                                                          (Rs. in Crs.)
	Quarter 2 08-09	Half Year 08-09
International	19.25	34.25
Domestic	2.38	5.20
Consolidated*	21.63	39.45
International
Sonata Software Limited	13.48	26.75
ODSi	0.67	1.32
Sonata Software GmbH	0.12	0.25
Sonata Europe Limited	3.77	2.51
TUI InfoTec GmbH**	4.42	6.92
Domestic
SITL	2.38	5.20

* Consolidated Revenue and profit after tax are after elimination of inter company transactions.
** Sonata's share of 50.1% of the profit

 

  Half Year

 

Consolidated

Revenue was Rs. 824.29 cr. up 20% Y.O.Y  PAT was Rs. 39.45 cr. up 52%  RONW (Annualised) at 32.15% as compared to 24.87% for the same periodof last year  ROCE(Annualised) at 31.60% as compared to 21.66% for the same period of lastyear  EPS (Annualised) at Rs. 7.50 as compared to Rs. 4.93 for the same period of last year

Sonata Software Limited stand alone

Revenue was Rs.115.35 cr. up 22% Y.O.Y  PAT was Rs. 26.75 cr. up 63%  Revenue in US Dollars 28.14 Mn up 20% Y.O.Y  RONW (Annualised) at 25.54% as compared to 17.15% for the same period of last year  ROCE(Annualised) at 25.90% as compared to 17.27% for the same period of last year  EPS (Annualised) at Rs. 5.09 as compared to Rs. 3.11 for the same period of last year

 

Quarter

 

Consolidated

Revenue for the Quarter was Rs. 418.67 cr. up 25% Y.O.Y  Cash generation from operations was Rs. 28.42 cr  Cash reserves as on 30.09.08 was Rs. 108.93 cr  RONW (Annualised) at 34.03% as compared to 22.25% for the same Quarterof last year  EPS (Annualised) at Rs. 8.23 as compared to Rs. 4.54 for the same Quarterof last year

Sonata Software Limited stand alone

Revenue for the Quarter was Rs. 60.00 cr. up 23% Y.O.Y  Revenue in US Dollars 14.79 Mn up 25% Y.O.Y  5 new clients added during the quarter  Cash generation from operations was Rs. 28.53 cr.  RONW (Annualised) at 24.95% as compared to 17.69% for the same Quarter of last year  EPS (Annualised) at Rs. 5.13 as compared to Rs. 3.28 for the same Quarterof last year