Sonata Software Ltd. — Interim / Quarterly Report 2021

Aug 4, 2021

4th August, 2021

Dear Sirs, 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

Sub: OUTCOME OF BOARD MEETING

Ref: DISCLOSURE UNDER REGULATION 30 OF SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015

This is to inform that the Board of Directors of the Company at their Meeting held today i.e. 4th August, 2021 have inter-alia approved the Unaudited Financial Results (Standalone and Consolidated) of the Company for the First Quarter ended June 30, 2021.

In terms of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we hereby enclose a copy of the Unaudited Financial Results (Standalone and Consolidated) for the quarter ended 30th June, 2021 together with Limited Review Report from our Statutory Auditors. A copy of the press release is enclosed for your reference.

The meeting of the Board of Directors of the Company commenced at 2.00 p.m. and concluded at 4.45 p.m.

Also note that the aforesaid information will be available on our website www.sonata-software.com

Please take the same on record.

Thanking you,

Yours faithfully For Sonata Software Limited Mangal Kulkarni MANGAL KRISHNARAO KULKARNI Digitally signed by MANGAL KRISHNARAO KULKARNI Date: 2021.08.04 16:49:38 +05'30'

Company Secretary, Compliance Officer and Head-Legal

Encl: as above

Deloitte Haskins & Sells LLP

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

• $\mathbf{1}$ . We have reviewed the accompanying Statement of Standalone Unaudited Financial Results of SONATA SOFTWARE LIMITED ("the Company"), for the quarter ended June 30, 2021 ("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.
• $2.$ 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 that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
• 1. 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 and Sells LLP Chartered Accountants (Firm's Registration No. 117366W/W-100018)

work of

Gurvinder Singh (Partner) (Membership No. 110128) (UDIN: 21110128AAAAEB8367)

Place: Bengaluru Date: August 04, 2021

Regd. Office: Indiabulls Finance Centre, Tower 3, 27' - 32" Floor, Senapati Bapat Marg, Elphinstone Road (West), Mumbai - 400 013, Maharashtra, India (LLP Identification No. AAB-8737)

SONATA SOFTWARE LIMITED

Registered Office: 208, T.V. Industrial Estate, S.K. Ahire 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

Part I ₹ in lakhs, except per share data

Statement of unaudited standalone financial results for the quarter ended June 30, 2021

Sl No.	Particulars		Quarter ended		Year ended
		June 30, 2021	March 31, 2021	June 30, 2020	March 31, 2021
		(Unaudited)	(Unaudited) (Refer Note 2)	(Unaudited)	(Audited)
1	Revenue from operations	18,886	19,703	18,215	78,141
2	Other income (Refer Note 9)	4,209	1,096	(149)	4,480
3	Total Revenue (1 + 2)	23,095	20,799	18,066	82,621
4	Expenses
	(a) Purchases of Stock-in-Trade	2,652	1,597	1,516	6,074
	(b) Employee benefits expense	10,089	11,203	9,310	41,333
	(c) Finance costs	251	238	250	972
	(d) Depreciation and amortization expense	464	462	480	1,890
	(e) Other expenses	2,218 15,674	2,068	1,977	7,323
	Total expenses		15,568	13,533	57,592
5	Profit before tax (3 - 4)	7,421	5,231	4,533	25,029
6	Tax expense
	(1) Current tax	1,195	1,278	1,562	5,904
	(2) Provision/reversal for tax relating to prior years	-	(79)	-	1,485
	(3) Deferred tax Profit for the period (5 - 6)	237 5,989	117	(374)	(263)
7			3,915	3,345	17,903
8	Other comprehensive income	(438)
	1 (a) Items that will not be reclassified to profit or (loss) (b) Income tax relating to items that will not be reclassified to profit or		(1,017)	344	(66)
	(loss)	84	219	(90)	15
	2 Items that will be reclassified to profit or (loss)
	(a) Exchange differences in translating the financial statements of foreign operations	27	1	13	131
	(b) Exchange differences on forward cover	(156)	(190)	1,060	2,423
	(c) Income tax relating to items that will be reclassified to
	profit or (loss)	25	13	(281)	(576)
	Total	(458)	(974)	1,046	1,927
9	Total Comprehensive Income for the period (7 + 8)	5,531	2,941	4,391	19,830
10	Paid-up equity share capital (Face Value ₹ 1/-)	1,039	1,039	1,039	1,039
11	Other equity (Refer Note 7)	51,913	51,913	36,289	51,913
12	Earnings per equity share (of ₹ 1/- each) (Refer Note 8)
	(a) Basic	5.76	3.77	3.22	17.23
	(b) Diluted	5.76	3.77	3.22	17.23
	See accompanying notes to the financial results

Notes:

1 These quarterly unaudited 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 (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 August 4, 2021.

2 The figures for the quarter ended March 31, 2021 are balancing figures arrived based on audited results of the full financial year and published year to date unaudited figures for nine months ended December 31, 2020.

3 Subsequent to quarter ended June 30, 2021, Sonata Software North America Inc., (SSNA) a wholly-owned subsidiary of Sonata Software Limited, has acquired 100% stake in Encore Software Services, Inc. a California Corporation (hereinafter referred to as "Encore US") for a total consideration of USD 14.62 Mn ( ₹ 110 crs) which comprises of upfront cash consideration of USD 6.37 Mn ( ₹ 48 crs) and contingent consideration of USD 8.25 Mn ( ₹ 62 crs) payable over 3 years. The payment of contingent consideration to the share holders is dependent upon the achievement of certain financial targets for respective years.

Additionally, Sonata Software Limited , has also obtained a management control of Encore IT Services Solutions Private Limited, a Chennai based Company (hereinafter referred to as "Encore"). The Company has also entered into definite agreement with Shareholders to acquire 100% stake in Encore for a total consideration of USD 1.2 Mn ( ₹ 9 crs), subject to various regulatory approvals.

4 During the quarter the Sonata Provident Fund Trust has surrendered the exemption granted and transferred the provident fund accumulation of employees to the Employees' Provident Fund Organisation (EPFO), Mumbai. Accordingly from the month of May 2021 onwards the company has been remitting their monthly contribution of provident fund to EPFO.

5 The company had cancelled the existing Stock Appreciation Rights Plan (SAR) during the quarter and introduced the Bonus plan in lieu of SAR effective from Q3 of FY 2021-22.

• 6 The Company also publishes unaudited consolidated financial results in addition to unaudited standalone financial results. In accordance with Ind AS 108 Operating Segments, the Company has disclosed the segment information in the unaudited consolidated financial results.
• 7 The other equity with respect to each quarter represents balance as per the audited Balance Sheet of the previous year as required by SEBI (Listing and Other Disclosure Requirements) Regulations, 2015
• 8 EPS for quarterly periods is not annualised.

	.
9	Other Income includes the following:

Other Income includes the following :
	Quarter ended			Year ended
Particulars	June 30, 2021	March 31, 2021	June 30, 2020	March 31, 2021
	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
i) Interest Income	345	317	137	864
ii) Dividend from subsidiary	1,749	-	-	2,894
iii) Net gain on current investments	44	74	16	205
iv) Net foreign exchange gain/(loss)	363	653	(328)	247
v) Other non-operating income*	1,708	52	26	270
Total	4,209	1,096	(149)	4,480

* Consequent to the transfer of the provident fund from the trust to Employees' Provident Fund Organisation, the provision of ₹ 1,217 Lakhs made earlier is no longer required and the same is reversed.

The management has considered the possible effects of the pandemic relating to COVID-19 on the carrying amounts of receivables and goodwill as at June 30, 2021. In developing the assumptions relating to the recoverability of these assets, the management has considered the global economic conditions prevailing at the date of approval of these financial results and has used internal and external sources of Information including credit reports to the extent determined by it. The eventual outcome of impact of the global health pandemic may be different from those estimated as on the date of approval of these financial results.

FOR AND ON BEHALF OF THE BOARD OF DIRECTORS

Place : Bengaluru Date : August 04, 2021

10

P SRIKAR REDDY MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER

Deloitte Haskins & Sells LLP

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 CONSOLIDATED FINANCIAL RESULTS

TO THE BOARD OF DIRECTORS OF SONATA SOFTWARE LIMITED

• $\mathbf{1}$ We have reviewed the accompanying Statement of Consolidated Unaudited 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 ended June 30, 2021 ("the Statement") being submitted by the Parent pursuant to the requirement of Requlation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Requlations, 2015, as amended.
• This Statement, which is the responsibility of the Parent's Management and approved by the Parent's Board of $\overline{2}$ . 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 inguiries, 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 would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
• The Statement includes the results of the Parent and subsidiaries as given in the Annexure of this report. $\overline{4}$ .
• 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 and Sells LLP Chartered Accountants (Firm's Registration No. 117366W/W-100018)

format

Gurvinder Singh Partner (Membership No. 110128) (UDIN: 21110128AAAAEC2651)

Place: Bengaluru Date: August 04, 2021

Regd. Office: Indiabulls Finance Centre, Tower 3, 27' - 32"' Floor, Senapati Bapat Marg, Elphinstone Road (West), Mumbai - 400 013, Maharashtra, India (LLP Identification No. AAB-8737)

Deloitte Haskins & Sells LLP

Annexure to the Auditor's Report:

List of Subsidiaries:

• 1. Sonata Information Technology Limited
• 1. Sonata Software Solutions Limited
• 1. Sonata Software North America Inc.
• 1. Interactive Business Information Systems Inc.
• 1. Sonata Software FZ LLC
• 1. Sonata Software (Qatar) LLC
• 1. Sonata Europe Limited
• 1. Sonata Software GmbH 9. Scalable Data Systems Pty Ltd
• 1. Sopris Systems LLC
• 1. GAPbuster China Co. Ltd
• 1. GAPbuster Europe Limited
• 1. GAPbuster Inc.
• 1. Gapbuster Limited
• 1. GAPbuster Worldwide Malaysia Sdn Bhd
• 1. GAPbuster worldwide Pty Limited
• 1. Kabushiki Kaisha GAPbuster Japan

SONATA SOFTWARE LIMITED

Registered Office: 208, T.V. Industrial Estate, S.K. Ahire 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

Part I ₹ in lakhs, except per share data

Statement of unaudited consolidated financial results for the quarter ended June 30, 2021

Sl No.	Particulars	Quarter ended June 30, 2021 March 31, 2021 June 30, 2020			Year ended
			(Unaudited)		March 31, 2021
		(Unaudited)	(Refer Note 9)	(Unaudited)	(Audited)
1	Revenue from operations	126,854	107,571	95,244	422,808
2	Other income (Refer Note 5)	2,815	1,892	313	2,775
3	Total Revenue (1 + 2)	129,669	109,463	95,557	425,583
4	Expenses
	(a) Purchases of Stock-in-Trade	93,461	74,337	66,541	299,158
	(b) Employee benefits expense	16,775	16,800	14,311	62,548
	(c) Finance costs	442	355	343	1,539
	(d) Depreciation and amortization expense	989	938	1,021	3,957
	(e) Other expenses Total expenses	6,520 118,187	6,126 98,556	6,584 88,800	23,167 390,369
5	Profit before tax (3 - 4)	11,482	10,907	6,757	35,214
6	Tax expense
	(1) Current tax	3,131 -	2,606	2,751	10,203
	(2) Provision/reversal for tax relating to prior years (3) Deferred tax	(322)	(83) 78	- (986)	2,099 (1,484)
7	Profit for the period (5 - 6)	8,673	8,306	4,992	24,396
8	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	(526)	(985)	317	(69)
	to profit or (loss)	129	245	(84)	17
	2 Items that will be reclassified to profit or (loss) (a) Exchange differences in translating the financial statements
	of foreign operations and on goodwill reinstatement	112	216	(1,220)	1,040
	(b) Exchange differences on forward cover	(153)	(450)	868	3,535
	(c) Income tax relating to Items that will be
	reclassified to profit or (loss)	10	60	94	(1,134)
	Total	(428)	(914)	(25)	3,389
9	Total Comprehensive Income for the period (7 + 8)	8,245	7,392	4,967	27,785
	Of the Total Comprehensive Income above, total comprehensive income
	attributable to:
	Owners of the parent	8,245 -	7,392	4,967	27,785
	Non - controlling interest	8,245	- 7,392	- 4,967	- 27,785
	Of the Total Comprehensive Income above, Profit for the period
	attributable to:
	Owners of the parent	8,673	8,306	4,992	24,396
	Non - controlling interest	-	-	-	-
		8,673	8,306	4,992	24,396
	Of the Total Comprehensive Income above, Other Comprehensive Income for the period attributable to:
	Owners of the parent	(428)	(914)	(25)	3,389
	Non - controlling interest	-	-	-	-
		(428)	(914)	(25)	3,389
10	Paid-up equity share capital (Face Value ₹ 1/-)	1,039	1,039	1,039	1,039
11	Other equity (Refer Note 8)	89,508	89,508	65,928	89,508
12	Earnings per equity share (of ₹ 1/- each) (Refer Note 7)
	(a) Basic	8.35	7.99	4.80	23.48
	(b) Diluted	8.34	7.99	4.80	23.48
	See accompanying notes to the consolidated financial results

Notes : Notes:

• 1 These quarterly unaudited consolidated financial results prepared in accordance with Indian Accounting Standards applicable as per Sec 133 of the Companies Act, 2013 have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on August 4, 2021.
• 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., Sonata Software GmbH, Sonata Europe Limited, Sonata Software FZ-LLC, Sonata Software (Qatar) LLC, Scalable Data Systems Pty Ltd, Sopris Systems LLC, Sonata Software Solutions Limited, GAPbuster China Co. Ltd, GAPbuster Europe Limited, GAPbuster Inc., Gapbuster Limited, GAPbuster Worldwide Malaysia Sdn Bhd, GAPbuster worldwide Pty Limited, and Kabushiki Kaisha GAPbuster Japan.
• 3 Subsequent to quarter ended June 30, 2021, Sonata Software North America Inc., (SSNA) a wholly-owned subsidiary of Sonata Software Limited, has acquired 100% stake in Encore Software Services, Inc. a California Corporation (hereinafter referred to as "Encore US") for a total consideration of USD 14.62 Mn ( ₹ 110 crs) which comprises of upfront cash consideration of USD 6.37 Mn ( ₹ 48 crs) and contingent consideration of USD 8.25 Mn ( ₹ 62 crs) payable over 3 years. The payment of contingent consideration to the share holders is dependent upon the achievement of certain financial targets for respective years.
• Additionally, Sonata Software Limited , has also obtained a management control of Encore IT Services Solutions Private Limited, a Chennai based Company (hereinafter referred to as "Encore"). The Company has also entered into definite agreement with Shareholders to acquire 100% stake in Encore for a total consideration of USD 1.2 Mn ( ₹ 9 crs), subject to various regulatory approvals.
• 4 During the quarter the Sonata Provident Fund Trust has surrendered the exemption granted and transferred the provident fund accumulation of employees to the Employees' Provident Fund Organisation (EPFO), Mumbai. Accordingly from the month of May 2021 onwards the group has been remitting their monthly contribution of provident fund to EPFO.
• 5 Consequent to the transfer of the provident fund from the trust to Employees' Provident Fund Organisation, the provision of ₹ 1,217 Lakhs made earlier is no longer required which is reversed and included in other income.
• 6 The company had cancelled the existing Stock Appreciation Rights Plan (SAR) during the quarter and introduced the Bonus plan in lieu of SAR effective from Q3 of FY 2021-22.
• 7 EPS for quarterly periods is not annualized.
• 8 The other equity with respect to each quarter represents balance as per the audited consolidated Balance Sheet of the previous year as required by SEBI (Listing and Other Disclosure Requirements) Regulations, 2015.
• 9 The figures for the quarter ended March 31, 2021 are balancing figures arrived based on audited results of the full financial year and published year to date unaudited figures for nine months ended December 31, 2020.
• 10 11 The management has considered the possible effects that may result from COVID-19 in the preparation of these consolidated financial results including the recoverability of carrying amounts of financial and non-financial assets. In developing the assumptions relating to the recoverability of these assets, the management has considered the global economic conditions prevailing at the date of approval of these financial results and has used internal and external sources of Information including credit reports to the extent determined by it. The eventual outcome of impact of the global health pandemic may be different from those estimated as on the date of approval of these financial results. The consolidated segment wise revenue, results and capital employed are as follows :

Particulars Quarter ended
	June 30, 2021	March 31, 2021	June 30, 2020	Year ended March 31, 2021
	(Unaudited)	(Unudited) (Refer Note 9)	(Unaudited)	(Audited)
1. Segment revenue
a. India	76,756	65,899	53,367	257,614
b. Other than India	50,259	42,152	42,333	167,331
Total	127,015	108,051	95,700	424,945
Less : Inter segment revenue	(161)	(480)	(456)	(2,137)
Revenue from operations	126,854	107,571	95,244	422,808
2. Segment results
Profit before tax and interest
a. India	3,291	2,899	1,399	8,303
b. Other than India	6,141	7,485	5,234	25,986
Total	9,432	10,384	6,633	34,289
Less: Finance costs	(442)	(355)	(343)	(1,539)
Add: Unallocable income net of unallocable expenditure	2,492	878	467	2,464
3. Profit before tax	11,482	10,907	6,757	35,214

			(₹ in lakhs)
Particulars	June 30, 2021	March 31, 2021	June 30, 2020
	(Unaudited)	(Audited)	(Unaudited)
4. Segment assets
a. India	82,299	75,727	88,290
b. Other than India	100,341	84,745	84,219
c. Unallocable	43,086	34,220	27,110
Total Assets	225,726	194,692	199,619
5. Segment liabilities
a. India	77,464	56,652	78,433
b. Other than India	36,729	34,091	31,332
c. Unallocable	12,729	13,402	16,747
Total Liabilities	126,922	104,145	126,512
Capital Employed	98,804	90,547	73,107

FOR AND ON BEHALF OF THE BOARD OF DIRECTORS

Date : August 4, 2021 MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER

Place : Bengaluru P SRIKAR REDDY

Sonata Software - Consolidated Q1 FY 21-22 PAT at ₹ 86.7 Crores, YoY growth of 74% Bengaluru, August 04, 2021

Sonata Software, a global IT services and technology solutions company, today reported its unaudited financial results for its 1st quarter ended 30th June 2021.

					in ₹ Crores
	For the Quarter ended
Description	30-Jun-21	31-Mar-21	QoQ	30-Jun-20	YoY
Revenues
International IT Services	323.9	319.0	2%	275.8	17%
Domestic- Products & Services	946.2	761.5	24%	681.3	39%
Consolidated	1,268.5	1,075.7	18%	952.4	33%
EBITDA
International IT Services	97.1	90.5	7%	64.7	50%
Domestic- Products & Services	32.4	31.8	2%	16.9	92%
Consolidated	129.1	122.0	6%	81.2	59%
PAT
International IT Services	63.7	60.5	5%	38.3	66%
Domestic- Products & Services	23.0	22.6	2%	11.6	98%
Consolidated	86.7	83.1	4%	49.9	74%

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

Our overall strategy of building digital enterprises by creating platforms through our unique PlatformationTM methodology has proven more relevant in the current context with greater reliance and investments by enterprises in digitization and automation. Our investments to create a stronger organization in the quality of clients, relationships, and internal investments, in creating world class competencies aligned to PlatformationTM across platform engineering, cloud transformation, data analytics and Microsoft Dynamics, have created the required market impact. We see the demand situation being extremely satisfactory with growth in existing accounts and new deal pipeline. In view of super high demand for talent, we have a comprehensive talent plan in place for digital focussed skills, for talent retention, creating talent in advance and expanding our delivery centres with near shore delivery centres for US and Europe. Our acquisition of Encore is promising as it gives us access to fast the growing health care provider segment and expanding our cloud footprint apart from a new delivery location in Chennai.

With continued clear visibility and business opportunity, we stay focused now on investing for long term growth, in talent acquisition and transformation, IP and competency development.

Performance Highlights for the quarter:

• Consolidated:
• Revenues at ₹ 1268.5 crores; YoY growth of 33%
• EBITDA at ₹ 129.1 crores; YoY growth of 59%
• PAT at ₹ 86.7 crores; YoY growth of 74%
• DSO days improved from 43 days to 38 days
• Cash and equivalents of approximately ₹ 840.4 Crores (net of borrowings).

• International IT Services:

• Revenues at ₹ 323.9 crores; YoY growth of 17%
• Revenue in USD at 44.5 Million, YoY revenue growth of 21.9% in USD terms
• QoQ Growth across all geographies (USA 1.7%, Europe 0.3%, Rest of World 2.3%).
• Strong Execution through Platformation™ led growth, IP led growth and Alliance led growth
• Sonata's approach to Digitizing business using Platformation™
• EBITDA at ₹ 97.1 crores; YoY growth of 50%
• PAT at ₹ 63.7 crores; YoY growth of 66%
• Addition of 13 new customers.
• Strong cash and liquidity positions maintained. DSO is at 37 days.
• Our pipeline continues to be healthy and strong through multiple new digital wins from existing and new customers.
• Domestic Products & Services:
• Revenues at ₹ 946.2 crores; YoY growth of 39%
• DSO days improved from 49 days to 39 days
• EBITDA at ₹ 32.4 crores; YoY growth of 92%
• PAT at ₹ 23 crores; YoY growth of 98%

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 IoT, 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 560004, India Tel: +91 80 67781999 nandita.v@sonata-software.com