Sonata Software (SONATSOFTW) Q4 99/00 earnings summary

Executive summary

• FY00 total income rose 40.01% to Rs.1,761.74 million; PAT increased 139.84% to Rs.233.96 million, aided by a shift toward offshore delivery and improved realizations.

• Export revenue grew 25.71% to Rs.785.62 million; offshore work rose to 49.16% of exports from 37.05% in FY99.

Financial highlights

• FY00 PBT was Rs.252.13 million vs. Rs.103.57 million; PAT was Rs.233.96 million vs. Rs.97.55 million.

• Q4 total revenue rose 24.01% YoY; Q4 PAT grew 229.34% and PAT margin reached 13.95% vs. 5.25%.

• Proposed final dividend of Rs.2.50/share plus interim dividend of Rs.1.50/share; FY00 total dividend Rs.4.00/share vs. Rs.3.00/share in FY99.

Outlook and guidance

• FY01 R&D focus planned for e-commerce, m-commerce, wireless solutions and mobile computing, with emphasis on technology, tools and methodology.

• International acquisition financing was under consideration; pricing and issue size discussions with merchant bankers were ongoing for a proposed private placement.