Sonata Software -Consolidated FY 19-20 PAT at Rs 277 Crores ; 11% YoY growth

Speaking on the results, Srikar Reddy, Managing Director & CEO of the Company said:

“These last few weeks have been unprecedented in the speed of evolution of events and the impact it has had on businesses globally. Our immediate focus was obviously to ensure the employee safety and organise ourselves to deliver services remotely globally with work from home measures implemented effectively. We have been able to move 100% of our work force to work remotely/ from home globally and been able to create and implement processes to deliver different kinds of services to our clients extremely effectively without any disruption and in some cases with more productivity. All this would have not been possible without the commitment of all Sonatians and their effort in this is highly commendable. We took care of the immediate short-term responses effectively, we also have now drawn up plans to create and execute plans for growth. While our overall strategy of creating digital enterprises by creating platform through our unique Platformation methodology is more relevant in the new normal with more digitisation, automation and contactless operations.”

A couple of industry verticals we were focussed on like travel and retail have been affected but we are glad to report that the acquisitions we made last year Sopris and Scalable have created opportunities in industries like utilities and commodity and Agri based businesses.

GBW our latest acquisition is in the customer experience space (CX) is another large emerging opportunity in the digital transformation pace.

While we  will be affected in the short term due to the impact of the COVID-19 we believe our long term business model  and strategy and the investments we have made and continue to make in IP creation will stand us in good stead to take advantage of the opportunities that will definitely emerge when the crises ends.“

Performance Highlights for the quarter:                                                                                                                             

• Consolidated:

Ø  Revenues at Rs 928.7crores;

Ø  EBITDA at Rs 95.2crores*;

Ø  PAT at Rs 61.8crores*;

Ø  Cash and equivalents of approximately Rs 311Crores (net of borrowings).

• International IT Services:

 Ø  Revenues at Rs 325.5 crores;

Ø  EBITDA at Rs 72.3crores*;

Ø  PAT at Rs 45.2crores*;

Ø  Addition of 6 new customers.

• Domestic Products & Services:

 Ø  Revenues at Rs 607 crores;

Ø  EBITDA at Rs 23.2crores;

Ø  PAT at Rs 16.6crores;

 * The company has made a provision for PF investment (IL&FS) of Rs 12.7 crore during the quarter.