Sonata Software Consolidated Q2FY11 Net Profit at Rs 25 cr up by 17% YoY

Declares Interim Dividend of 100%

Leading Indian software solutions company, Sonata Software Ltd. today reported its audited financial results for the quarter and the half year ended 30th September 2010.

Highlights:

Sonata Software Ltd. – Consolidated

• Revenue for the quarter at Rs. 391.14 Cr  ( Rs.347.33 Cr ) up  13% YoY
• Net profit for the quarter at Rs.25.04 Cr ( Rs. 21.35 Cr ) up 17% YoY
• Earnings per share (Annualized) for the quarter at Rs. 9.53 ( Rs. 8.12 ) up 17% YoY   
• RONW (Annualised) for the quarter at 26% 
• ROCE (Annualised) for the quarter at 25% 
• Consolidated Cash Reserves : Rs.156.04 Cr  ( Rs.72.47 Cr )

Sonata Software Ltd. – Stand Alone

• Revenue for the quarter at US$14.25 Mn  ( US$12.51 Mn ) up  14% YoY
• Revenue for the quarter at Rs.65.08 Cr  ( Rs.59.95 Cr ) up  9% YoY
• EBIDTA for the quarter at Rs.18.60 Cr ( Rs.17.54 Cr ) up  6% YoY
• Net profit for the quarter at Rs. 15.20 Cr ( Rs.14.67 Cr ) up 4% YoY
• Earnings per share (Annualised) for the quarter at Rs.5.78 ( Rs.5.58 ) up 4% YoY
• RONW and ROCE ( Annaulised)for the quarter at  20%    
• Cash from operations for the quarter Rs.13.44 Cr  
• Cash Reserves : Rs. 67.15 Cr  ( Rs.37.38 Cr )

* Figures  shown in brackets pertains to Q2  09-10

Management Comments:
Commenting on the results, Mr. B. Ramaswamy, President and Managing Director, Sonata Software Limited said, “This has been a strong quarter showing improvement in key operational metrics. Focus continues to be on building specialization and demonstrating continued value for our customers”.

Significant Projects:
A pharmaceutical major has engaged Sonata to establish a centralized IT services Delivery Team which will help them to meet the IT needs of various divisions and optimize cost of operations in a highly regulated environment. As a part of this engagement, Sonata will provide Managed Testing Services which will help them to achieve significant improvement in their service quality to the end customer. Sonata will also provide Remote Infrastructure Support and Application Maintenance Services to the customer enabling them to enhance their productivity, improve response times and achieve significant cost reduction.

As a part of implementing web strategy for general insurance company, Sonata has developed a comprehensive e-commerce platform and product management system for the customer. The new e-commerce platform will enable help them to develop new products for their customers, manage marketing campaigns and Affinity Partners with minimal IT involvement. This solution will also help them to cross-sell insurance products to customers visiting the Partner Websites.

A defence establishment has engaged Sonata for the implementation of Active Directory, System Centre Configuration Manager (SCCM), Office Communications Server (OCS) and related support services for a period of 2 years. The establishment has 100 units spread over 30 kilometers and connected through Optical Fibre Communication (OFC). Each unit has its own Domain.  Sonata is helping the customer to effectively consolidate the Domains into one Unified Domain. This will lead to smooth flow of information across departments, centralized management of Domains, reduced downtime of servers, improved efficiency of mailing solution and increased availability of critical systems.

Sonata is assisting a leading provider of Workforce Management Solution Software to undergo a technology modernization through re-engineering. The modernization process will enable them to upgrade the product to an enterprise class solution that is scalable. This will help them to offer the product globally and expand their customer base.

Sonata is working with the IT wing of a leading provider of Travel and Transportation services in the Middle East to develop a Travel Management System which will include a full suite of Front Office (POS), Mid Office (Pricing) and Back-Office (Revenue Accounting) solutions. Developed for their Travel Services business, the application will provide the Travel Agents with the functionality of flight reservations along with booking of Hotels, Cars and Transfers which will be integrated seamlessly within the transaction life-cycle so as to have an error-free and efficient handling of various business transactions.

About Sonata Software Limited
Sonata Software (www.sonata-software.com), 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 key business segments include Product Engineering (ISV), Enterprise IT and Travel, Transportation and Logistics. As per the industry rankings released by NASSCOM for FY 2009-10, Sonata Software figured among the Top 20 IT Software Services Exporters in India for the third consecutive year. Sonata has been ranked among Top 10 R&D Services players globally by Zinnov Management Consulting Pvt. Ltd. Zinnov has rated Sonata 6th in the Software Products segment.

Sonata’s subsidiaries include (1) TUI InfoTec – Sonata’s Joint Venture with TUI, Europe’s largest tourism group, (2)  Sonata North America Inc (formerly 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 a premier software services and product distribution company with India-focused business operations.