Sonata net remains flat in second quarter
By IANSWednesday, October 14, 2009
BANGALORE - Sonata Software posted a net profit of Rs.21 crore in the second quarter this fiscal, registering a flat growth year-on-year, the IT consulting and services firm said Wednesday.
In a regulatory filing, the firm said consolidated income for the quarter under review, however, declined by 18 percent to Rs.347 crore from Rs.4.24 billion in the like period last year.
“Over the last few months, the challenging business environment has put to test the resilience of the organisation and its business model. That we have been able to emerge positively provides us a strong impetus,” Sonata managing director B. Ramaswamy told reporters here.
The Bangalore-based IT firm and its four subsidiaries provide a wide-range of services, including product engineering, application development and management, business intelligence, infrastructure management, travel solutions and packaged applications.
The company’s earnings before interest, taxes, depreciation and amortisation (EBIDTA) also remained flat at Rs.46 crore.
“Our international operations have contributed Rs.200 million to our bottomline on an income of Rs.2.31 billion though lower than Rs.2.53 billion in the same quarter a year ago,” Ramaswamy said.
Revenue from domestic operations also declined to Rs.116 crore from Rs.171 crore a year ago.
“The global financial crisis and slowdown in the Indian economy had impacted our operations. With the worst behind us, we are seeing a positive turn from this quarter. We are upbeat on maintaining the momentum,” Ramawamy asserted.
As a result, net profit and EBIDTA increased by 20 percent and 21 percent sequentially over the previous quarter this fiscal.
For the second quarter, the company’s international subsidiary TUI InfoTec with Europe’s largest tourism group (TUI) posted revenue of Rs.176 crore, while Sonata Information Technology registered Rs.117 crore and Sonata Software Rs.68 crore.
The company’s top 10 clients, including Fortune 500 firms, account for 76 percent of total revenue. It has 2,680 employees.
