Sonata Software (SONATSOFTW) Q4 02/03 earnings summary

Executive summary

• FY03 consolidated income rose to Rs 2,578.34m from Rs 2,275.34m, while PAT fell to Rs 152.54m from Rs 208.90m.

• Offshore delivery expanded and customer wins continued amid weak IT spending; strategy emphasized outsourcing, customer relationships and value-led solutions.

Financial highlights

• Standalone FY03 total income was Rs 845.52m vs Rs 837.14m; PAT was Rs 155.78m vs Rs 178.05m.

• Standalone Q4 revenue was Rs 213.46m vs Rs 169.15m YoY; PAT was Rs 41.22m vs Rs 20.95m.

• Consolidated FY03 revenue was Rs 2,563.09m vs Rs 2,247.42m; total income was Rs 2,578.34m vs Rs 2,275.34m.

• Consolidated FY03 PBT was Rs 196.51m vs Rs 222.07m; PAT was Rs 152.54m vs Rs 208.90m.

Outlook and guidance

• 20 new customers were added in FY03, including five in Q4; priorities include deepening these relationships and developing reference customers.

• Plans include Virtual Joint Venture relationships with international firms, combining their customer access with offshore delivery capability.

• Focus areas include faster customer benefits, technology and process upgrades, and continued investment in internal IP and service-oriented architecture.