Business
Sonata Software – Consolidated Q3 FY21 EBIDTA at Rs 114 Crores, QoQ growth of 27%
Mumbai, February 04, 2021 : Sonata Software, a global IT services and technology solutions company, today reported its unaudited financial results for its 3rd quarter ended and nine months ended 31st December 2020.
*During the quarter provision for income tax settlement under Vivad se Vishwas Scheme(“VsVs”)is made Rs 15.6 Crores for International IT Services (Sonata Software Limited), Rs 6.2Crores for Domestic Products & Services (Sonata Information Technology Limited) and Rs 21.8Crores for Consolidation financials. Consequently, contingent liability (based on the original demand as per order) has been reduced by Rs 33.7Crores for International IT Services (Sonata Software Limited), Rs15.3Crores for Domestic Products & Services (Sonata Information Technology Limited) and Rs 49Crores for Consolidation financials.
Mr. Srikar Reddy, Managing Director & CEO of the Company said:
“The results for the quarter reflect all round growth across different segments of the business, growth especially in the digital business resulting in highly profitable growth. This is a clear indication that our overall strategy of building digital enterprises by creating platforms through our unique ‘Platformation’ methodology is more relevant in the current context with greater reliance and investments by enterprises in digitization and automation. We have become a much stronger organization in the quality of clients, relationships, and
internal investments, in creating world class competencies aligned to ‘Platformation’ across platform engineering, cloud transformation, data analytics and Microsoft Dynamics.Specifically, we would like to mention the GBW investment made which is focussed on delivering platform based CX(customer experience) is holding premise and differentiation to our digital offering.
With clear visibility and business opportunity in the immediate future, we are focused now on investing for long term growth, in talent acquisition and transformation, IP and competency development.
The company also announced compensation revision effective January 1st, 2021.”
Performance Highlights for the quarter:
- Consolidated:
Ø Revenues at Rs 1,396 Crores: growth of 74% QoQ and growth of 13% on YoY basis.
Ø EBITDA at Rs 114Crores:growth of 27% QoQ
Ø Net Profit at Rs 75.6 Crores(Grossed up for income tax settlement under VsVs Rs 21.8Crores); sequential growth 32%
Ø Cash and equivalents (net of borrowings) approximately Rs 604Crores.
- International IT Services:
Ø Revenues at Rs 300crores; growth of 4% QoQ;
Ø Revenue in USD at 41 Million, QoQ revenue growth of 5.0% in USD terms and constant currency growth of 4.5%.
Ø Growth across all geographies (USA 7.1% , Europe 4.9% , Rest of World 1.4% ) .
Ø EBITDA at Rs 87Crores:growth of 24% QoQ;
Ø Net profit (PAT) at Rs 57Crores(Grossed up for income tax settlement under VsVs Rs 15.6Crores), QoQ growth of 31%
Ø Addition of 8 new customers during the quarter.
Ø Overall strategy of creating digital enterprises by creating platform through our unique Platformation methodology are yielding results.
Ø Strong growth from digital based competencies like Managed cloud services and Digital Platformation Services (Microsoft & Open source) and focused verticals like ISV, Retail (Essential) and Commodity Business & Service Industry.
Ø Strong cash and liquidity positions maintained. Improvement in DSO days from 47 days to 36 days.
Ø Our pipeline continues to be healthy and strong through multiple new digital wins from existing and new customers.
- Domestic Products & Services:
Ø Revenues at Rs 1,099 crores: growth of 110%QoQ;
Ø Domestic business revenue driven by multiyear cloud-based annuity deals. More than 60% of revenue from cloud-based deals. Sustained growth ensured through strong customer retention, ~82% of gross margin from customers with turnover (customer’s revenue) more than 1,000 Crores and more than 60% of gross margin earned from repetitive customers with more the 5 years of association.
Ø Domestic business measured on absolute Gross Margin. Gross margin for the Quarter at Rs 38 crs vs Q2’21
Rs 30 Crores, QoQ growth of 26%.
Ø EBITDA at Rs 27Crores:growth of 39% QoQ;
Ø Net profit (PAT) at Rs 18.6crores QoQ growth of 36% (Grossed up for income tax settlement under VsVs Rs 6.2Crores).
Ø DSO days improved from 63 days to 57 days.