Sonata Software Ltd. — Interim / Quarterly Report 2019

Oct 30, 2019

30th October, 2019

National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Mumbai Kind Attn: Manager, Listing Department Email Id: neaps@nse.co.in Stock Code - SONATSOFTW

BSE Limited P.J. Towers, Dalal Street Mumbai Kind Attn: Manager, Listing Department Email Id: listing.centre@bseindia.com Stock Code - 532221

Dear Sir/Madam,

Sub: Outcome of Board Meeting

Ref: Disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

This is to inform you that the Board of Directors at its meeting held today i.e. 30th October, 2019 interalia has:-

• a) Approved Unaudited Financial Results of the Company for quarter and half year ended 30th September, 2019.
• b) Declared Interim Dividend at Rs. 5.75 per share (575% on par value of Re.1/-). The Record date for the purpose of payment of Interim Dividend will be on Saturday, 9th November, 2019. Interim Dividend will be paid to the registered shareholders on or after 13th November, 2019 through Electronic mode or by dividend warrants, as applicable.

The meeting of the Board of Directors of the Company commenced at 01.00 p.m. and concluded at 3.40 p.m.

Kindly take the same on record.

Thanking you,

Yours faithfully For Sonata Software Limited MANGAL KRISHNARAO KULKARNI Digitally signed by MANGAL KRISHNARAO KULKARNI Date: 2019.10.30 15:48:35 +05'30'

Mangal Kulkarni Company Secretary and Compliance Officer

Chartered Accountants Prestige Trade Tower, Level 19 46, Palace Road, High Grounds Bengaluru - 560 001 Karnataka, India

Tel: +91 80 6188 6000 Fax: +91 80 6188 6011

INDEPENDENT AUDITOR'S REVIEW REPORT ON REVIEW OF INTERIM STANDALONE FINANCIAL RESULTS

TO THE BOARD OF DIRECTORS OF SONATA SOFTWARE LIMITED

• 1. We have reviewed the accompanying Statement of Unaudited Standalone Financial Results of SONATA SOFTWARE LIMITED ("the Company"), for the quarter and six months ended September 30, 2019 ("the Statement"), being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.
• 1. This Statement, which is the responsibility of the Company's Management and approved by the Company's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard 34 "Interim Financial Reporting" (''Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
• 1. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity', issued by the Institute of Chartered Accountants of India (ICAI). A review of interim financial information consists of making inquiries, primarily of the Company's personnel responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing specified under section 143(10) of the Companies Act, 2013 and consequently does not enable us to obtain assurance t hat we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
• 4 . Based on our review conducted as stated in paragraph 3 above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, including the manner in which it is to be disclosed, or that it contains any material misstatement.

For DELOITTE HASKINS & SELLS LLP Chartered Accountants 7;..~ n No. 117366W/W-100018)

Gurvinder Singh Partner (Membership No. 110128)

Place : MUMBAI Date: 3 r0 ,,- (JJc,601:n:.ft - ,2,cJ/ CJ

SONATA SOFTWARE LIMITED

Registered Office: 208, T. V. Industrial Estate, S.K. Ah ire Marg, Worli, Mumbai - 400 030

Corporate Office: 1/4, A.P.S Trust Building, Bull Temple Road, N.R. Colony, Bangalore - 560 019

CIN • L72200MH1994PLC082110

www.sonata-software.com, Tel : +91-080-67781999 Fax: +91-080-26601387, investor@sonata-software.com

I Part I							'I: in lakhs, except per share data l
	Statement of unaudited standalone financial results for the quarter and six months ended September 30, 2019
			Quarter ended		Six months ended	Year ended
SI No.	Particulars	September 30, 2019	June 30, 2019	September 30, 2018	September 30, 2019	September 30, 2018	. March 31, 2019
		{Unaudited}	{Unaudited}	(Unaudited}	(Unaudited}	(Unaudited}	(Audited}
1	Revenue from operations	21,611	20,877	20,583	42,488	39,828	82,933
2	Other income	1,932	1,013	1,287	2,945	1,739	1,768
3	Total Revenue (1 + 2)	23,543	21,890	21,870	45,433	41,567	84,701
4	Expenses
	(a) Purchases of Stock-in-Trade	1,509	1,480	1,073	2,989	2,385	4,651
	(bl Employee benefits expense	11,607	11,122	10,405	22,729	19,610	40,466
	(c) Finance costs	264	277	5	S42	6	8
	(d) Depreciation and amortization expense	509	503	156	1,011	292	613
	(el Other expenses	3,453	3,301	3,847	6,754	7,152	15,075
	Total expenses	17,342	16,683	15,486	34,025	29,445	60,813
5	Profit before exceptional items and tax (3 • 4)	6,201	5,207	6,384	11,408	12,122	23,888
6	Exceptional item
7	- Interest income on income tax refund Profit before tax (5 + 6)					49	49
		6,201	5,207	6,384	11,408	12,171	23,937
8	Tax expense
	(1) Current tax	1,749	1,332	1,819	3,081	3,510	7,210
9	(2) Deferred tax Profit for the period (7 - 8)	(138) 4,590	159 3,716	(39)	21	(236)	(516) 17,243
				4,604	8,306	8,897
10	Other comprehensive income
	1 (a) Items that will not be reclassified to profit or (loss) (b) Income tax relating to items that will not be reclassified	28	(203)	76	(176)	218	(221
	to profit or (loss)	(7)	58	(21)	51	(57)	6
	2 Items that will be reclassified to profit or (loss)
	(a) Exchange differences in translating the financial statements of foreign operations
	(b) Exchange differences on forward cover	(15) (1,141)	(124) 45	198 (1,578)	(139) (1,097)	94 (2,110)	(99) 1,721
	(c) Income tax relating to Items that will be
	reclassified to profit or (loss)	315	23	388	338	551	(454)
	Total	{820)	(201)	(937)	{1,023)	(1,304}	1,152
11	Total Comprehensive Income for the period (9 + 10)	3,770	3,515	3,667	7,283	7,593	18,395
12	Paid-up equity share capital {Face Value f 1/·)	1,039	1,039	1,038	1,039	1,038	1,039
13 14	Other equity (Refer Note 5) Earnings per equity share (off 1/· each) (Refer Note 4)	52,276	52,276	48,105	52,276	48,105	52,276
	(a) Basic	4.42	3.58	4.43	7.99	8.57	16.59
	(b) Diluted	4.42	3.58	4.43	7.99	8.56	16.58
	See accompanying notes to the financial results

SONATA SOFTWARE LIMITED

Registered Office: 208, T.V. Industrial Estate, S.K. Ahire Marg, Wor1i, Mumbai-400 030 Corporate Offiu: 1/4, A.P.S Trust Buildin&; Bull Temple Road, N.R. Colony, Bangalore - 560 019

	CIN - L72200MH1994PLC082110 www.sonata-software.com, Tel: +91-080-67781999 Fax: +91-080-26601387, investor@sonata-software.com
	Part II		(₹ in lakhs)
	Standalone Balance Sheet
Si No.	Particulars	As at September 30, 2019	As at March 31, 2019
	ASSETS
$\mathbf{1}$	NON-CURRENT ASSETS
	(a) Property, Plant and Equipment (b) Right-of-use assets	1,575 9,085	1,711
	(c) Capital work-in-progress	1	3
	(d) Goodwill	282	282
	(e) Financial assets
	(i) Investments	4,955	5.034
	(ii) Other Financial Assets	1,786	1,474
	(f) Deferred tax assets (net)	1,192	1,124
	(g) Other non-current assets	3,361	2,801
		22,237	12,429
$\overline{2}$	CURRENT ASSETS
	(a) Financial assets
	(i) investments	3,155	9,899
	(ii) Trade receivables	26,391	28,260
	(iii) Cash and cash equivalents	14,843	7.174
	(iv) Bank balances other than (iii) above (v) Loans	1,576	1.436 245
	(vi) Other Financial Assets	3,064	4,807
	(b) Other current assets	1,165	842
		50,194	53,263
	TOTAL - ASSETS	72,431	65,692
	EQUITY AND LIABILITIES
3	EQUITY
	(a) Equity Share capital	1.039	1,039
	(b) Other equity	50,126	52,276
		51,165	53,315
	LIABILITIES
4	NON-CURRENT LIABILITIES
	(a) Other financial liabilities	10,395	914
	(b) Other non-current liabilities		858
		10,395	1,772
5	CURRENT LIABILITIES
	(a) Financial liabilities
	(i) Trade payables
	Total outstanding dues of micro enterprises and small enterprises	11	43
	Total outstanding dues of creditors other than micro enterprises and small enterprises	5,459	5,117
	(ii) Other financial liabilities (b) Other current liabilities	402	421
	(c) Provisions	1,541 1,329	1,637 1,228
	(d) Current tax liabilities (net)	2,129	2,159
		10,871	20,605
	TOTAL - EQUITY AND LIABILITIES	72,431	65,692
	The disclosure is an extract of the unaudited standalone Balance Sheet as at September 30, 2019 and March 31, 2019 in compliance with Indian Accounting Standards ("Ind AS")

	Standalone Cash Flow Statement
SI No.	Particulars		Six months ended
		September 30, 2019	September 30, 2018
	A. CASH FLOW FROM OPERATING ACTIVITIES
	Net profit before tax	11.408	12,171
	Operating profit before working capital changes	10.855	10.911
	Net cash (used in)/ generated by operating activities	11,471	6,155
	B. CASH FLOW FROM INVESTING ACTIVITIES	7,569	3,902
3	C. CASH FLOW FROM FINANCING ACTIVITIES	(11, 428)	(8,524)
	Net increase/[decrease} in cash and cash equivalents(A+B+C)	7.612	1,533
	Opening cash and cash equivalents	7,174	11,627
	Exchange difference on translation of foreign currency cash and cash equivalents	57	(232)
	Closing cash and cash equivalents	14.843	12.928

The disdosure is an extract of the unaudited standalone cash flowstatemMt for the sbc months ended Septembef' 30, 2019 and September 30, 2018 in compliance with Ind AS 34 lntet"im financial reporting .

...... 1 These quaterty and six months ended u naudited standalone financial results prepared in accordance with Indian Accounting Standards applicable as per Sec 133 of the Companies Act, 2013 read with Rule 3 of the. Companies (Ind.an AccounUng Sbindards) Rules 2015 and amendments thet'"e.after have. been reviewed by the Avdit Committee and apprOVffl by the Board ofOif"ecl:on; at their~ meetiflgs hetd on October 30, 2019. The Statutory Auditor of the company have carriedout a timited review of these results.

2 Based on the finandal periorm.ance of the Company, the Board at its meeting held today, a pproved an interim dividend onS,7S / - per share.

3 The Company publrshcs um1udited standak>ne financial results akmg with unaudited conso5datcd fin anti.ti results. In accordance with Ind AS 103 Opcr.,ting Scgmenb, the Company has disclose the ~t information in the unaudited consolidated financial results.

4 EPS for quarter and six months period endNI is not annualised.

S The other equity with re.spttt to q uarter and sixmonths represents balance as per the audited Balance Sheet of the pr us year as required by SEBI {Listing and Olhet" Disclosure Requirements) Regulations, 2015 6 On 20th Sept em bet" 201.9, the Government of India, vide the Taxation Laws (Amendment) Ordinance 2019, inserted

domestic companies an option to pay Corporate Tax at reduced rate effective 01 April 2019, subject lo certain condit" option.

7 As the quarter and year-to-date figures a re taken from the source and rounded to the nearest digits, the quarter figur quarters might not always add up to the year-to-date figures reported in this results. up to the figures reported fw the previous

Place: Mumbai Date: October 30, 2019

Chartered Accountants Prestige Trade Tower, Level 19 46, Palace Road, High Grounds Bengaluru • 560 001 Karnataka, India

Tel: +91 80 6188 6000 Fax: +9180 6188 6011

INDEPENDENT AUDITOR'S REVIEW REPORT ON REVIEW OF INTERIM CONSOLIDATED FINANCIAL RESULTS

TO THE BOARD OF DIRECTORS OF SONATA SOFTWARE LIMITED

• 1. We have reviewed the accompanying Statement of Unaudited Consolidated Financial Results of SONATA SOFTWARE LIMITED ("the Parent") and its subsidiaries (the Parent and its subsidiaries together referred to as "the Group"), for the quarter and six months ended September 30, 2019 ("the Statement") being submitted by the Parent pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.
• 1. This Statement, which is the responsibility of the Parent's Management and approved by the Parent's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
• 1. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Institute of Chartered Accountants of India (!CAI). A review of interim financial information consists of making inquiries, primarily of Parent's personnel responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing specified under Section 143(10) of the Companies Act, 2013 and consequently does not enable us to obtain assurance that we wou ld become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion .
• 1. The Statement includes the results of the Parent and the Subsidiaries as given in the Annexure of this report.

f

1. Based on our review conducted and procedures performed as stated in paragraph 3 above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, including the manner in which it is to be disclosed, or that it contains any material misstatement.

For DELOITTE HASKINS & SELLS LLP

Chartered Accountants (Firm's Registration No. 117366W/W-100018)

/'✓'/

Gurvinder Singh Partner (Membership No. 110128)

Place: Mumbai Date : 5c, ...-oaoJ.G-'¥ _ze:,/'7

Annexure to the Auditor's Report

List of Subsidiaries:

• 1. Sonata Information Technology Limited
• 1. Sonata Software North America Inc. ("SSNA")
• 1. Rezopia Inc. (Merged with SSNA with effect from June 14, 2019)
• 1. Halosys Technologies Inc. (Merged with SSNA with effect from June 14, 2019)
• 1. Interactive Business Information Systems Inc.
• 1. Sonata Software GmbH
• 1. Sonata Software FZ LLC
• 1. Sonata Europe Limited
• 1. Sonata Software (Qatar) LLC
• 1. Scalable Data Systems Pty Ltd
• 1. Sopris Systems LLC

SONATA SOFlWARE LIMITED

Registered Office: 208, T. V. Industrial Estate, S.K. Ah ire Marg, Worli, Mumbai - 400 030

Corporate Office: 1/4, A.P.S Trust Building, Bull Temple Road, N.R. Colony, Bangalore -560 019 ON • L72200MH1994PLC082110

www.sonata-software.com, Tel: +91-080-6TT81999 Fax: +91-080-26601387, investor@sonata-software.com

I Part I							" in lakhs, except per share data I
	Statement of unaudited consolidated financial results for the quarter and six months ended September 30, 2019
			Quarter ended		Six months ended	Year ended
SI No.	Particulars	September 30, 2019	June 30, 2019	Septembe< 30, 2018	September 30, 2019	September 30, 2018	March 31, 2019
		(Unaudited}	(Unaudited}	(Unaudited}	(Unaudited}	(Unaudited}	(Audited)
1	Revenue from operations	70,307	87,463	59,307	157,770	128,139	296,090
2	Other income	2,084	1,678	1,669	3.762	2,454	2,725
3	Total Revenue (1 + 2)	72,391	89,141	60,976	161,532	130,593	298,81S
4	Expenses
	(a) Purchases of Stock-in-Trade	38,064	55,583	30,626	93,647	72,532	178,036
	{b) Employee benefits expense (c) Finance costs	16,178 3S2	16,145 382	14,638 95	32,323 733	27,842 162	56,886 339
	{d) Depreciation and amortization expense	920	895	289	1,816	579	1,274
	(e) Other expenses	7,015	6,774	6,643	13,789	13,030	27,607
	Total expenses	62,529	79,779	S2,291	142,308	114,14S	264,142
s	Profit before exceptional items and tax (3 - 4)	9,862	9,362	8,685	19,224	16,448	34,673
6	Exceptional item
7	- Interest income on income tax refund Profit before tax (5 + 6)	9,862	9,362	8,685	19,224	186 16,634	276 34,949
B	Tax expense (1) Current tax	3,173	2,486	2,800	5,659	5,321	11,045
	(2) Deferred tax	(535)	171	(333)	(364)	(647)	(984)
9	Profit for the period (7 - 8)	7,224	6,705	6,218	13,929	11,960	24,888
10	Other comprehensive income
	1 {a} Items that will not be reclassified to profit or {loss)	44	(194)	82	(149)	233	{22)
	(b} Income tax relating to items that will not be reclassified
	to profit or {loss}	(12)	55	(24)	43	(66)	11
	2 Items that will be reclassJfied to profit or (loss)
	(a) Exchange differences in translating the financial statements
	of foreign operations and on goodwill reinstatement (b) Exchange differences on forward cover	31 (1,182)	(461) 52	464 (1,706)	(429) (1,130)	154 (2,343)	(76) 1,665
	(c} Income tax relating to Items that will be
	reclassified to profit or (loss)	323	102	360	425	623	(348)
	Total	(796)	(446)	(824)	{1,240)	(1,399)	1,230
11	Total Comprehensive Income for the period (9 + 10}	6,428	6,259	S,394	12,689	10,561	26,118
	Of the Total Comprehensive Income above, total comprehensive income
	attributable to:
	Owners of the parent Non - controlling interest	6,428	6,259	5,394	12,689	10,585 {24)	26,156 (38)
		6,428	6,259	S,394	12,689	10,561	26,118
	Of the Total Comprehensive Income above, Profit for the period
	attributable to:
	Owners of the parent Non - controlling interest	7,224	6,705	6,218	13,929	11,984 (24)	24,926 (38)
		7,224	6,705	6,218	13,929	11,960	24,888
	Of the Total Comprehensive Income above, Other Comprehensive Income
	for the period attributable to:
	Owners of the parent Non - controlling interest	(796)	(446)	(824)	(1,240)	(1,399)	1,230
		(796)	(446)	{824)	{1,240)	{1,399)	1,230
12	Paid-up equity share capital (Face Value f 1/-)	1,039	1,039	1,038	1,039	1,038	1,039
13	Other equity (Refer Note S)	75,787	75,787	64,293	75,787	64,293	75,787
14	Earnings per equity share (of~ 1/- each) {Refer Note 4)
	(a) Basic	6.95	6.45	5.99	13.41	11.54	23.99
	(b) Diluted See accomoanying notes to the consolidated financial results	6.95	6.45	5.98	13.40	11.53	23.97

SONATA SOFTWARE LIMITED

Registered Office: 208,. T.V. Industrial Estate, S.K. Ahire Marg, Worti, Mumbai - 400 030 Corporate Office : 1/4, A. P.S Trust Building, Bull Temple Road, N.R. Colony, Bangalore -560 019

ON - L72200MH1994PLC082110

www.sonata-software.com, Tel: +91-080-67781999 Fax: +91--080-26601387, investor@sonata-software .com

Part 11			(~ in lakhs)
	Consolidated Balance Sheet
SI No.	Particulars	Asat september 30, 2019	As at M arch 311 2019
	ASSETS
1	NON-OJRRENT ASSETS
	(a) Property, Plant and Eq uipment	2,017	2,203
	(b) Right-of-use assets	10,6S2
	(c} Capital work-in-progress	54	55
	(d)Goodwill	14,785	14,519
	(e) Other intangible assets (f) Financial assets	2,758	3,220
	(i) Investments	573	621
	{ii) Other Financial Assets	2,388	1,912
	(g) Deferred tax assets {net)	1,794	1,190
	(h) Other non<.urrent assets	5,303	4,412
	Tot31	40,324	28,132
2	CURRENT ASSETS
	(a) Financial a~ts
	(i) Investments	3,156	14,015
	(ii) Trade receivables	71,273	8 1,111
	(iii} Cash and cash equivalents	23,007	17,432
	{iv) Bank balances other t han (iii) above	2,684	2.489
	(v) Other Financial Assets	6,268	6,854
	(b) Other current assets	4,240	2,775
	Total current assets	110,628	124,676
	TOTAL ASSETS	1S0,9S2	152,808
	EQUl1Y AND LIABILITIES
3	EQUITY
	(a) Equity Share capital	1,039	1,039
	(b) Othe r equity	79,229	75,787
	(c) Non-controlling interest	-
	Total	80,268	76,826
	LIABILITIES
4	NON-CURRENT LIABILmES
	(a) Financial liabilities
	Other Financial Liabilities	14,108	3,284
	(b) Other non-current liabilities		1,066
		14,108	4,350
5	CURRENT LIABILITIES (a) Financial liabilities
	(i) Borrowings	508	1,562
	(ii) Trade payables
	Total outstanding dues of micro ent erprises and small enterprises	11	43
	Total outstanding dues of creditors other than micro enterprises and small enterprises	44,923	58,690
	(iii) Other Financial Liabilities	441	388
	(b) Other current liabilities	4,419	4,842
	(c) Provisions	1,983	1,850
	(d) Current tax liabilities (net)	4,291	4,257
	Total current liabilities	S6,576	71,632
	TOTAL EQUl1Y AND LIABILITIES	150,952	152,808

The d isclosure is an extract of the unaudited com.olidat ed Balance Sheet as at September 30, 2019 and March 31, 2019 in compliance with Ind ian Accounting Standards ("Ind AS")

	Consolidated Cash Flow Statement
Sf No.	Particulars	Six months ended
		September 30, 2019	September 30, 2018
l	A. CASH FLOW FROM OPERATING ACTIVmES
	Net profit before tax	19,2 24	16,634
	Operating profit before wortdng capital changes	18,750	14,099
	Net cash (used in)/ generated by operating activities	7,139	(9,473)
2	B. CASH FLOW FROM INVESTING ACTIVmES	11,400	5,825
3	C. CASH FLOW FROM FINANONG ACllVm ES	(13,009)	(8,985)
	Net ina ease/(deae:ase) fn cash and cash equivalents(A+B+CJ	5,530	(12,633)
	Opening cash and cash equivalents	17,432	33,406
	Exchange difference on translation of foreign currency cash and cash equivalents	45	(108)
	Closing cash and cash equivalents	23,007	20,665

The disclosure is an extract of the unaudited consolidated cash flow statement for the six months ended September 30, 2019 and September 30, 2018 in compliance with Ind AS 34 lnterim financial reporting .

Notes:

1 These quaterly and six months ended unaudited consolidated financials results prepared in accordance with Indian accounting standards applicable as per Sec 133 of the Companies

Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules 2015 and amendments thereafter have been reviewed by the Audit Committee and approved by the

Board of Directors at their respective meetings held on October 30, 2019. The Statutory Auditor of the company have carriedout a limited review of these results.

2 Unaudited consolidated financial results include financial results of subsidiaries i.e, Sonata Information Technology Limited, Sonata Software North America Inc., Interactive Business Information Systems Inc. (IBIS), Sonata Software GmbH, Sonata Europe Limited, Sonata Software FZ-LLC, Sonata Software (Qatar) LLC, Scalable Data Systems Pty Ltd and Sopris Systems LLC.

3 Based on the financial performance of the Company, the Board at its meeting held today, approved an interim dividend of~ 5.75/- per share.

4 EPS for quarter and six months ended is not annualised.

5 The other equity with respect to quarter and six months represents balance as per the audited Balance Sheet of the previous year as required by SEBI (Listing and Other Disclosure Requirements) Regulations, 2015

6 On 20th September 2019, the Government of India, vide the Taxation Laws (Amendment) Ordinance 2019, inserted Section 115BAA in the Income Tax Act, 1961, which provides

domestic companies an option to pay Corporate Tax at reduced rate effective 01 April 2019, subject to certain conditions. The Indian subsidiary i.e. Sonata Information Technology

Limited has opted to pay corporate tax at reduced rate, however the Parent Company i.e. Sonata Software Limited is currently in the process of evaluating this option.

7 As the quarter and year-to-date figures are taken from the source and rounded to the nearest digits, the quarter figures in this statement added up to the figures reported for the previous quarters might not always add up to the year-to-date figures reported in this results.

8 T h e conso Id i ate d segment wise revenue an d I resu ts are as f ollows :						( ~ma · I kh s )
Particulars		Quarter ended			Six months ended	Year ended
	September 30,	June 30,	September 30,	September 30,	September 30,	March 31,
	2019	2019	2018	2019	2018	2019
	{Unaudited)	{Unaudited)	{Unaudited!	{Unaudited)	(Unaudited!	(AuditedJ
1. Segment revenue
a. India	35,831	48,911	31,260	84,742	73,804	179,441
b. Other than India	35,360	38,959	28,884	74,319	55,761	119,020
Total	71,191	87,870	60,144	159,061	129,565	298,461
Less : Inter segment revenue	(884)	(407)	(837)	(1,291)	(1,426)	(2,371)
Revenue from operations	70,307	87,463	59,307	157,770	128,139	296,090
2. Segment results
Profit before tax and interest
a. India	1,430	1,664	895	3,094	1,831	4,862
b. Other than India	8,324	7,428	7,197	15,750	13,701	27,560
Total	9,754	9,092	8,092	18,844	15,532	32,422
Less: Finance costs	(352)	(382)	(95)	(733)	(162)	(339)
Add: Unallocable income net of unallocable expenditure	460	652	688	1,113	1,078	2,590
3. Profit before tax and exceptional item	9,862	9,362	8,685	19,224	16,448	34,673
Exceptional item
- Interest Income on income tax refund	-	-	-	-	186	276
4. Profit before tax	9,862	9,362	8,685	19,224	16,634	34,949

Particulars	September 30,	June 30,
			March 31,	September 30,
	2019	2019	2019	2018
5. Segment assets
a. India	53,421	70,087	50,377	41,081
b. Other than India	76,137	84,686	82,795	65,320
c. unallocable	21,394	19,552	19,636	14,540
Total Assets	150,952	174,325	152,808	120,941
6. Segment liabilities
a. India	39,854	57,579	52,854	29,439
b. Other than India	26,028	26,833	17,302	16,525
c. Unallocable	4,802	6,228	5,826	7,594
Total Liabilities	70,684	90,640	75,982	53,558

Place : Mumbai Date : October 30, 2019

Sonata Software - Consolidated Q2 FY19-20 PAT at f 72 Crores; 16 % YoY growth, declares interim dividend off 5.75 per share

Mumbai, October 30, 2019

Sonata Software, a global IT services and technology solutions company, today reported its unaudited financial results for it s 2nd quarter and six months ended 30thSeptember, 2019.

Description	For the Quarter ended					For the half year ended
	30-Sep-19	30-Jun-19	30-Sep-18	QoQ	YoY	30-Sep-19	30-Sep-18	YoY
International ITServices	312.6	304.5	275.3	3%	14%	617.1	532.4	16%
Domestic- Products & Services	399.1	574.1	325.9	-30%	22%	973.2	763.1	28%
Consolidated	703.1	874.6	593.1	-20%	19%	1,577.7	1,281.4	23%
EBITDA
International ITServices	89.5	84.4	73.5	6%	22%	173.9	140.1	24%
Domestic- Products & Services	22.S	22.4	17.7	1%	27%	44.9	34.4	31%
Consolidated	111.4	106.4	90.7	5%	23%	217.7	173.8	25%
International ITServices	56.1	53.4	51.2	5%	10%	109.5	98.5	11%
Domestic- Products & Services	16.1	13.7	11.0	18%	46%	29.8	21.4	39%
Consolidated	72.2	67.1	62.2	8%	16%	139.3	119.8	16%

Speaking on the results Mr. Srikar Reddy, Managing Director & CEO of the Company said,

The continued growth in revenues and profits have been the result of our focus of being a digital transformation partner through our unique proprietary Platformation methodology and our strategy of IP led differentiation , focus on verticals like Retail, Distribution, CPG, ISVS and new technologies. We continue to see increased momentum in the market with addition of new marquee clients and strong pipeline.

The acquisitions we made i.e. Sopris and Scalable are showing promise and with the commodity industry and services industry capabilities.

Performance Highlights for the quarter:

• Consolidated:

• ► Revenues at, 703 Crores ;
• ► EBITDA at, 111 Crores : growth of 5% QoQ;
• ► PAT at, 72 Crores: growth of 8% QoQ;
• ► Cash and cash equivalents, 280 Crores.

• International IT Services:

• ► Revenues at, 313 crores; growth of 3% QoQ;
• ► EBITDA at , 90 Crores : growth of 6% QoQ;
• ► PAT at, 56 Crores: growth of 5% QoQ;
• ► Addition of 7 new customers.

• Domestic Products& Services :

• ► Revenues at , 399 crores;
• ► EBITDA at , 23 Crores;
• ► PAT at, 16 Crores: growth of 18% QoQ;

About Sonata Software

Sonata is a global technology company, that enables successful platform based digital transformation initiatives for enterprises, to create businesses that are connected, open, intelligent and scalable. Sonata's Platformation™ methodology brings together industry expertise, platform technology excellence, design thinking-led innovation and strategic engagement models to deliver sustained long term value to customers. A trusted partner of world leaders in the Retail, Manufacturing & Distribution, Travel and Software industries, Sonata's solution portfolio includes its own digital platform such as Brick & Click Retail Platform©, Modern Distribution Platform©, Rezopia Digital Travel Platform©, RAPID DevOps Platform©, Kartopia E-commerce Platform© , Halosys Mobility Platform©, and Commodity CTRM Platform©, best-in-class capabilities on ISV digital technology platforms such as Microsoft Dynamics 365, Microsoft Azure, SAP Hybris, Cloud Engineering and Managed Services, as well as new digital applications like loT, Artificial Intelligence, Machine Learning, Robotic Process Automation, Chatbots, Block Chain and Cyber Security. Sonata's people and systems are nurtured to bring together the depth of thought leadership, customer commitment and execution excellence to make a difference to business with technology.

For further information, please contact:

Nandita Venkatesh Sonata Software Limited CIN- L72200MH1994PLC082110 A.P.S. Trust Building, Bull Temple Road, N.R. Colony Bangalore 560019, India Tel: +9180 67781999 nandita. v@sonata-software.com