Sonata Software Consolidated Q1 FY10 Net Profit at Rs 17.76 Cr

Leading Indian software solutions company, Sonata Software Ltd. today reported its audited financial results for the quarter ended 30th June, 2009.

Highlights for the quarter ended June 30, 2009:

• Consolidated Revenue for the quarter at Rs. 378 Cr up 3% QoQ
• Cash generation of Rs. 42.45 Cr (Consolidated) for the quarter
• Consolidated Cash Reserves (net) : Rs. 103.89 Cr
• Earnings per share annualized (Consolidated) at Rs. 6.76 up 3% QoQ 
• RONW and ROCE for the quarter (Consolidated) at 25% and 27% respectively
• EBIDT for the quarter at Rs. 16.18 Cr (Stand alone) up 8% QoQ
• EBIDT for the quarter at Rs. 38.32 Cr (Consolidated) up 6% QoQ
• Net profit for the quarter at Rs. 17.76 Cr (Consolidated) up 3% QoQ
• Net profit for the quarter at Rs. 13.39 Cr. (Stand alone) up 4% QoQ

Management Comments:
Commenting on the results, Mr. B. Ramaswamy, President and Managing Director, Sonata Software Limited said, “In a quarter that saw tightening of IT budgets and high volatility in exchange rates, we are very pleased with the results. We have been able to successfully negotiate the headwinds by focusing on continuous value addition to our customers, geographical expansion and by strengthening our offerings. Further, we are investing in the India and Middle East markets as well as adding new practice areas to drive long term growth.”

Significant Projects:
Sonata is partnering with a leading provider in video solutions based in US to build their on-demand Video Distribution system with enhanced features. This enables faster video transfer between the main server and edge servers, with lesser manual intervention. Sonata’s solution also replaces the customer’s existing third-party product, thereby reducing the associated license cost.

For a large electronics retailer in Saudi Arabia, Sonata is developing a modular ecommerce website using cutting edge technologies. To be used on a hosted mode, this website will be a first in the Middle East region. From the traditional brick-and-mortar model, this will be the company’s first foray into online retail marketing. The solution is based on Intershop’s Enfinity suite, and will include all features of a full-fledged ecommerce site, including Shopping Cart, My Preferences, a powerful Search feature, and inventory management.

A large general insurance company, engaged Sonata to define and implement its web strategy for its Asia pacific operations. This includes building next generation web site for collaboration, self service web applications for insurance agents and white labeled e-commerce application that can interface with affiliate sites.

About Sonata Software Limited
Sonata Software, headquartered in Bangalore, India, is a leading IT consulting and services company. Sonata's customers are located across the US, Europe, Middle East and the Asia-Pacific region. Its portfolio of services includes IT Consulting, Product Engineering Services, Travel Solutions, Application Development, Application Management, Managed Testing, Business Intelligence, Infrastructure Management and Packaged Applications. As per the industry rankings released by NASSCOM for FY07-08, Sonata Software figured among the Top 20 IT Software and Service Exporters in India. Sonata Software has also been ranked global #2 in the 2008 Top Ten ESO: Outsourced Software Development in The Black Book of Outsourcing.

Sonata’s subsidiaries include (1) TUI InfoTec – Sonata’s Joint Venture with TUI, Europe’s largest tourism group, (2)  Offshore Digital Services Inc – Sonata’s arm in the US, which provides development and consulting services to clients, using an onsite-offshore delivery model, (3) Sonata Software FZ LLC – Sonata’s fully-owned subsidiary that provides value-based IT solutions to customers in the Middle East and (4) Sonata Information Technology Limited which is premier software services and product distribution company with India-focused business operations.