Sonata Software (SONATSOFTW) Q4 04/05 earnings summary

Executive summary

• FY05 consolidated income rose 48% YoY to Rs.3,337.31m; PAT reached Rs.160.87m, up from Rs.100.50m.

• Growth reflected stronger offshore delivery, expanded customer relationships and added capacity; 17 new customers were secured during the year.

Financial highlights

• Q4 consolidated total income was Rs.827.02m vs Rs.750.07m YoY; EBIDT was Rs.76.70m vs Rs.48.11m, and PAT was Rs.45.39m vs Rs.27.04m.

• FY05 consolidated sales and services were Rs.3,293.07m vs Rs.2,221.99m; PBT was Rs.192.41m vs Rs.125.27m and PAT Rs.160.87m vs Rs.100.50m.

• Consolidated EPS was Rs.1.53 vs Rs.0.96; standalone EPS was Rs.1.56 vs Rs.1.08.

Outlook and guidance

• Bangalore development center was at full capacity; Hyderabad capacity and the German subsidiary were added to address customer demand and pursue the German market.

• Priorities included extending relationships with 17 new customers, building reference clients and pursuing alliances with international technology leaders; no numerical financial guidance was stated.