Sonata Software Ltd. — Interim / Quarterly Report 2022

Oct 18, 2022

18" October, 2022

National Stock Exchange of India Limited BSE Limited Exchange Plaza, Bandra Kurla Complex, Mumbai P.J. Towers, Dalal Street, Mumbai Kind Attn: Manager, Listing Department Kind Attn: Manager, Listing Department Stock Stock Code — SONATSOFTW Code - 532221

Dear Sir/Madam,

SUB: OUTCOME OF BOARD MEETING REF: DISCLOSURE UNDER REGULATION 30 OF SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015

We wish to inform you that at the meeting of Board of Directors of the Company held today i.e. 18" October, 2022, the Board, inter-alia, has-

a) Considered and approved the Unaudited Financial Results of the Company (standalone and consolidated) for quarter and half year ended 30" September, 2022.

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 for the quarter and half year ended 30°" September, 2022 together with the Limited Review Report from Statutory Auditors of the Company. A copy of the press release is also enclosed for your reference.

b) Declared an Interim Dividend of Rs. 7.00 per share (700 % on par value of Rs. 1/-) for the financial year 2022-23. The Record date for the purpose of payment of the Interim Dividend will be on Tuesday, 1* November, 2022. The Interim Dividend will be paid to the registered shareholders on or after Monday, 14*° November, 2022 through Electronic mode or by dividend warrants, as applicable.

Pursuant to the amendments introduced in the Income Tax Act, 1961 (Act), vide Finance Act, 2020, w.e.f. April 1, 2020, the Company will be required to withhold taxes at the prescribed rates on dividend paid to the shareholders. Hence, the Interim Dividend declared shall be paid after deducting tax at source ('TDS') in accordance with the provisions of the Income Tax Act, 1961. shareholders at https://ris.kfintech.com/form15/ on or before 27°" October, 2022.

Communication in this regard has been sent to the shareholders, whose email IDs are registered with the Company and uploaded on the website of the Company under Investor Relations section. The required documents to enable the Company to determine the appropriate TDS rates can be uploaded by the

Sonata Software Limited - SSL Website: www.sonata-software.com

Registered Office: 208, T V Industrial estate, 2nd Floor, S K Ahire Marg, Worli, Mumbai — 400 030 email: info@sonata-software.com Corporate Office: APS Trust Building, Bull Temple Road, N. R. Colony, Bangalore - 560 019, India Tel: +91 80 6778 1999 | Fax: +91 80 2661 0972 | CIN : L72200MH1994PLC082110

Also. note that the aforesaid information is available on the Company's' website www.sonata-software.com. For any further queries on Tax on Dividend shareholders are requested to write to Investor@sonata-software.com.

The meeting of the Board of Directors of the Company commenced at 12.30 p.m. and concluded at 2:15 p.m.

Kindly take the same on record.

Thanking you,

Yours faithfully For Sonata Software Limited

Mangal Kulkarni Company Secretary, Compliance Officer and Head — Legal

Encl.: As above

Sonata Software Limited - SSL

Registered Office: 208, T V Industrial estate, 2nd Floor, S K Ahire Marg, Worli, Mumbai — 400 030 Corporate Office: APS Trust Building, Bull Temple Road, N. R. Colony, Bangalore - 560 019, India Tel: +91 80 6778 1999 | Fax: +91 80 2661 0972 | CIN : L72200MH1994PLC082110

Website: www.sonata-software.com email: info@sonata-software.com

Chartered Accountants

Embassy Golf Links Business Park, Pebble Beach, B Block, 3,a Floor, No, 13/2, Off Intermediate Ring Road, Bengaluru-560 071 India

Telephone: + 91 80 4682 3000 Fax: + 91 80 4682 3999

Limited Review Report on unaudited standalone financial results of Sonata Software Limited for the quarter ended 30 September 2022 and year-to-date results for the period from 1 April 2022 to 30 September 2022 pursuant to Regulation 33 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015

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 ended 30 September 2022 and year-to-date results for the period from 1 April 2022 to 30 September 2022 ("the Statement").
• 1. This Statement, which is the responsibility of the Company's management and approved by the Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013, and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Our responsibility is to issue a report 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. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review is limited primarily to inquiries of company personnel and analytical procedures applied to financial data and thus provides less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion.
• 1. Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with applicable accounting standards and other recognised accounting practices and policies has not disclosed the information required to be disclosed in terms of Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 including the manner in which it is to be disclosed, or that it contains any material misstatement.

BS R & Co (a piir1rtorship rirm ,-J1h Rogislralion No. BA61223) -=:onvened into 8 SR & Co LLP (a Limited Uabilily P,:,nnvrohip with llP Regislration No. AAB-8181) v .. ;u, arract rrom Oc.tober 14, 2013 Registered Office:

14th Floor, Cenlral 8 Wing and North C Wing, Nesco IT Park 4, Nesco Center, Weslem Express Highway, Goregaon (East), Mumbai - 400063

1. The standalone financial statements of the Company for the year ended 31 March 2022 have been audited by the predecessor auditor whose report dated 29 April 2022 had expressed an unmodified opinion. The financial information of the Company for the corresponding quarter ended 30 September 2021 and the corresponding period from 1 April 2021 to 30 September 2021 has been reviewed by the predecessor auditor whose report dated 19 October 2021 had expressed an unmodified opinion.

Our conclusion is not modified in respect of this matter.

For B S R & Co. LLP

Chartered Accountants Firm's Registration No.:101248W/W-100022

4~~ Sachdev

Bengaluru 18 October 2022

Supreet Partner Membership No.: 205385 UDIN:22205385BACIIX4130

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

Statement of unaudited standalone financial results for the quarter and six months ended September 30, 2022

'I: in lakhs, except per share data I

SI No.	Particulars	Quarter ended		Six months ended	Year ended
		September 30, 2022	June 30, 2022	September 30, 2021	September 30, 2022	September 30, 2021	March 31, 2022
		(Unaudited}	(Unaudited}	(Unaudited}	(Unaudited}	(Unaudited}	(Audited}
1	Revenue from operations	23,719	21,851	18,904	45,570	37,790	75,814
2	Other income (Refer Note 5)	126	6,660	6,413	6,787	10,622	16,424
3	Total Revenue (1 + 2)	23,845	28,511	25,317	52,357	48,412	92,238
4	Expenses
	(a) Purchases of stock-in-trade	3,050	2,533	4,328	5,583	7,039	9,453
	(b) Changes in inventories of stock-in-trade		17	(1,555)	17	(1,614)	15
	(c) Employee benefits expense	12,721	12,395	9,513	25,116	19,602	41,499
	(d) Finance costs	181	189	213	370	464	878
	(e) Depreciation and amortization expense	452	442	425	894	889	1,755
	(f) Other expenses	3,126	2,857	2,479	5,983	4,697	10,615
	Total expenses	19,530	18,433	15,403	37,963	31,077	64,215
5	Profit before tax (3 - 4)	4,315	10,078	9,914	14,394	17,335	28,023
6	Tax expense
	(1) Current tax	1,190	1,293	1,086	2,483	2,281	4,197
	(2) Provision for tax relating to prior years		5		5
	(3) Deferred tax	28	(190)	89	(162)	326	307
7	Profit for the period (5 - 6)	3,097	8,970	8,739	12,068	14,728	23,519
8	Other comprehensive income
	1 (a) Remeasurement of the defined benefit plans	167	(265)	70	(98)	(368)	(933)
	(b) Income tax relating to Items that will not be reclassified to
	profit/(loss)	(13)	29	(30)	16	54	149
	2 Items that will be reclassified to profit or (loss)
	(a) Exchange differences in translating the financial statements of
	foreign operations	(77)	(42)	(37)	(119)	(10)	(14)
	(b) Fair value changes on derivatives designated as cash flow hedge, ne	(404)	(757)	155	(1,161)	(1)	201
	(c) Income tax relating to Items that will be reclassified to profit/(loss)	118	88	(24)	206	1	(30)
	Total	(209)	(947)	134	(1,156)	(324)	(627)
9	Total Comprehensive Income for the period (7 + 8)	2,888	8,023	8,873	10,912	14,404	22,892
10	Paid-up equity share capital (Face Value I!' 1/-)	1,386	1,039	1,039	1,386	1,039	1,039
11	Other equity (Refer Note 6)	56,136	56,136	51,913	56,136	51,913	56,136
12	Earnings per equity share (of, 1/· each) (Refer Note 4 & 7)
	(a) Basic	2.23	6.47	6.31	8.71	10.63	16.97
	(b) Diluted	2.23	6.47	6.30	8.71	10.63	16.96
	See accompanying notes to the financial results

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

			( ai: in lakhs)
	Standalone Balance Sheet
		Asat	Asat
SI No.	Particulars	September 30, 2022	March 31, 2022
	ASSETS
1	NON-CURRENT ASSETS
	(a) Property, plant and equipment	1,538	1,010
	(b) Right-of-use assets	5,067	5,734
	(c) Capital work-in-progress	6	1
	(d) Goodwill	282	282
	(e) Financial assets
	(i) Investments	6,173	6,389
	(ii) Other financial assets	1,730	1,761
	(f) Deferred tax assets (net)	1,897	1,512
	(g) Other non-current assets	5,880	5,152
		22,573	21,841
2	CURRENT ASSETS
	(a) Inventories	-	17
	(b) Financial assets
	(i) Investments	985	7,900
	(ii) Trade receivables	19,183	15,283
	(iii) Cash and cash equivalents	28,182	27,848
	(iv) Bank balances other than (iii) above	2,379	2,272
	(v) Loans	1,076	-
	(vi) Other financial assets	4,574	4,108
	(c) Other current assets	1,532	1,060
		57,911	58,488
	TOTAL-ASSETS	80,484	80,329
	EQUITY AND LIABILITIES
3	EQUITY
	(a) Equity share capital	1,386	1,039
	(b) Other equity	53,494	56,136
		54,880	57,175
	LIABILITIES
4	NON-CURRENT LIABILITIES
	Financial liabilities
	Lease liabilities	4,613	5,283
	Other financial liabilities	600	-
		5,213	5,283
5	CURRENT LIABILITIES
	(a) Financial liabilities
	(i) Lease liabilities	1,922	1,862
	(ii) Trade payables	11,593	10,052
	(iii) Other financial liabilities	1,792	978
	(b) Other current liabilities	1,716	1,679
	( c) Provisions	1,332	1,228
	(d) Current tax liabilities (net)	2,036	2,072
		20,391	17,871
	TOTAL- EQUITY AND LIABILITIES	80,484	80,329

The disclosure is an extract of the unaudited standalone Balance Sheet as at September 30, 2022 and audited as at March 31, 2022 in compliance with Indian Accounting Standards (Ind AS).

Standalone Cash Flow Statement
		(a: in Lakhs)
	For the half year ended
Particulars	September 30, 2022	September 30, 2021
	(Unaudited)	(Unaudited)
A. CASH FLOW FROM OPERATING ACTIVITIES
Profit before tax	14,394	17,335
Adjustments for : Depreciation and amortization expense	894	889
Finance costs	370	463
Impairment loss recognised on trade receivables and bad written off	44	(289)
Provisions/ liabilities no longer required written back	(64)	-
Lease payment concessions	-	(74)
Interest on financial assets at amortized cost	(13)	(22)
Interest from fixed deposits/margin money with banks Interest from PSU bonds	(655) (12)	(653) -
Interest from inter-corporate deposits	(53)	(31)
Dividend income from long-term investments in subsidiaries	(5,975)	(7,255)
Net gain on investments carried at fair value through profit and loss	(122)	(139)
Expenses on employee stock based compensation	301	19
Exchange (gain)/loss on revaluation of investments	215	22
Net unrealized foreign exchange (gain)/loss Operating profit before working capital changes	318 9,642	127 10,392
Adjustments for :
Decrease/(increase) in trade receivables	(3,979)	1,239
Decrease/(increase) in inventories	17	(1,614)
Decrease/(increase) in other current financial assets Decrease/(increase) in other non-current financial assets	(927) 8	(697) (9)
Decrease/(increase) in other non-current assets	45	241
Decrease/(increase) in other current assets	(470)	(133)
(Decrease)/increase in other non current financial liabilities	600	(2)
(Decrease)/increase in trade payables	1,604	4,531
(Decrease)/increase in other current financial liabilities	125	109
(Decrease)/increase in other current liabilities (Decrease)/increase in provisions	12 104	(1,509) (109)
Net cash flow from operations	6,781	12,439
Direct taxes/advance tax paid (net)	(3,263)	(2,915)
Net cash flow from operating activities (A)	3,518	9,524
B. CASH FLOW FROM INVESTING ACTIVITIES
Expenditure on property, plant and equipment including capital work-in-progress and
capital advances	(693)	(45)
Purchase of non-current investments	-	(356)
Purchase of current investments	(22,709)	(24,167)
Proceeds from sale of current investments Investments as per bank deposits	29,689 (107)	19,707 (52)
Interest received	218	39
Dividend received from subsidiary	5,975	7,255
Inter corporate deposit to subsidiary (net)	(1,076)	180
Net cash flow from investing activities (Bl	11,297	2,561
C. CASH FLOW FROM FINANCING ACTIVITIES Payment of lease liabilities	(943)	(829)
Payment of dividend	(13,561)	(10,412)
Interest paid .	(1)	(35)
Net cash flow used in financing activities (C)	(14,505)	(11,276)
Net increase/(decrease) in Cash and cash equivalents (A+B+C)	310	809
Opening Cash and cash equivalents	27,848	26,040
Exchange difference on translation of foreign currency Cash and cash equivalents	24	13
Closing Cash and cash equivalents	28,182	26,862
Cash and cash equivalents at the end of the period comprises:
Balances with banks
In current accounts	709	432
In EEFC accounts	691	842
In demand deposit accounts	26,782	25,588
	28,182	26,862

The Disclosure is an extract of the unaudited standalone cash flow statement as at September 30, 2022 and September 30, 2021 in compliance with Indian Accounting Standards (Ind AS)

Notes:

1 The statutory auditors, B S R & Co. LLP have expressed an unmodified review opinion on the standalone finacial results for the quarter and six months ended September 30, 2022. Amounts for the quarter and six months ended September 30, 2021 were reviewed by predecessor auditors and amounts for the year ended March 31, 2022 were audited by predecessor auditors, Deloitte Haskins & Sells LLP. The information presented above is prepared in accordance with the Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016. These unaudited standalone financial results thereafter have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on October 18, 2022. The above unaudited standalone financial results are filed with Stock Exchanges under Regulation 33 of the SEBI (Listing and Other Disclosure Requirements) Regulations, 2015 and are

available on the Stock Exchange websites, www.nseindia.com and www.bseindia.com, and on the Company's website, www.sonata-software.com.

• 2 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.
• 3 Based on the financial performance of the company, the Board at its meeting held today, approved an interim dividend of~ 7 per share.
• 4 EPS for quarter and six months ended are not annualised.
• 5 Other income for the quarter ended June 30, 2022 includes dividend income received from subsidiaries, Sonata Information Technology Limited ~ 5,701 Lakhs and Sonata Australia Pty Ltd ^~ 267 Lakhs.
• 6 The other equity with respect to each quarter and six months ended represents balance as per the audited Balance Sheet of the previous year as required by SEBI (Listing and Other Disclosure Requirements) Regulations, 2015.
• 7 During the quarter the company has allotted 35,053,102 Equity Shares of Re. 1/- each, credited as fully paid as bonus equity shares to the eligible Members of the Company whose names appear in the Register of Members of the Company as on the Record Date of September 10, 2022 in the ratio of 01 (One) new fully paid-up equity share for every 03 (Three) existing fully paid-up equity shares (1:3). The EPS for all the periods presented have been adjusted to this effect as required by "Ind AS 33: Earnings per Share".

FOR AND ON BEHALF OF THE BOARD OF DIRECTORS

Srikar Palem	Digitally signed by Srikar PalemReddy
Reddy	Date: 2022.10.18 13:47:30 +05"30"
P SRIKAR REDDY
MANAGING DIRECTOR

Place : Bengaluru Date : October 18, 2022

Chartered Accountants

Embassy Golf Links Business Park, Pebble Beach, B Block, 3"' Floor, No. 13/2, Off Intermediate Ring Road, Bengaluru-560 071 India

Telephone: + 91 80 4682 3000 Fax: + 91 80 4682 3999

Limited Review Report on unaudited consolidated financial results of Sonata Software Limited for the quarter ended 30 September 2022 and year-to-date results for the period from 1 April 2022 to 30 September 2022 pursuant to Regulation 33 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended

To the Board of Directors of Sonata Software Limited

• 1. We have reviewed th_e 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 ended 30 September 2022 and year-to-date results for the period from 1 April 2022 to 30 September 2022 ("the Statement"), being submitted by the Parent pursuant to the requirements of Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ('Listing Regulations').
• 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 Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013, and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. 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. A review of interim financial information consists of making inquiries, primarily of persons 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 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.

We also performed procedures in accordance with the circular issued by the Securities and Exchange Board of India under Regulation 33(8) of the Listing Regulations, to the extent applicable.

• 1. The Statement includes the results of the subsidiaries as disclosed in Annexure I to the Statement.
• 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 Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement.
• 1. The consolidated financial statements of the Group for the year ended 31 March 2022 have been audited by the predecessor auditor whose report dated 29 April 2022 had expressed an unmodified opinion. The financial information of the Group for the corresponding quarter ended 30 September 2021 and the corresponding period from 1 April 2021 to 30 September 2021 has been reviewed by the predecessor auditor whose report dated 19 October 2021 had expressed an unmodified opinion.

Our conclusion is not modified in respect of this matter.

BS R & Co (a partnership firm wilh Registration No BA61223) converted into BS R & Co LLP (a Limited Liabi lity Partnership with LLP Registration No AAB-8181) with etrect from October 14, 2013 14th Floor, Central B Wing and North C \/!Jing, Nesco IT Park 4, Nesco Center, Western Express Highway, Goregaon (East), Mumbai - 400063

Registered Office:

1. The Statement includes the interim financial results of 18 subsidiaries (including step-down subsidiaries) which have not been reviewed, whose interim financial results reflects total assets of Rs. 13,715.83 lakhs as at 30 September 2022 and total revenues of Rs. 10,655.42 lakhs and Rs. 20,192.34 lakhs, total net profit after tax of Rs. 895.93 lakhs and Rs. 1,310.84 lakhs and total comprehensive income of Rs. 404.41 lakhs and Rs. 1,209.52 lakhs, for the quarter ended 30 September 2022 and for the period from 1 April 2022 to 30 September 2022 respectively, and net cash outflow of Rs. 424.76 lakhs for the period from 1 April 2022 to 30 September 2022, as considered in the Statement. According to the information and explanations given to us by the Parent's management, these interim financial results are not material to the Group.

Our conclusion is not modified in respect of this matter.

For B S R & Co. LLP Chartered Accountants Firm's Registration No.: 1O1248W/W-100022

S preet Sachdev Partner Membership No.: 205385 U DIN :22205385BACIWE2483

Bengaluru 18 October 2022

Annexure I

List of subsidiaries included in unaudited consolidated financial results.

Sr. No	Name of component	Relationship
1	Sonata Information Technology Limited	Subsidiary
2	Sonata Software Solutions Limited	Subsidiary
3	Sonata Software FZ LLC	Subsidiary
4	Sonata Software (Qatar) LLC	Subsidiary
5	Sonata Europe Limited	Subsidiary
6	Sonata Software North America, Inc.	Subsidiary
7	Sonata Australia Pty Ltd	Subsidiary
8	Encore IT Services Solutions Private Limited	Subsidiary
9	Sonata Software GmbH	Subsidiary
10	Sonata Software Intercontinental Limited	Subsidiary
11	Interactive Business Information System, Inc.	Step-down Subsidiary
12	Sopris Systems LLC	Step-down Subsidiary
13	Encore Software Services, Inc.	Step-down Subsidiary
14	Sonata Software Canada Limited	Step-down Subsidiary
15	GAPbuster Limited	Step-down Subsidiary
16	GAPbuster Europe Limited	Step-down Subsidiary
17	GAPbuster Inc.	Step-down Subsidiary
18	Kabushiki Kaisha GAPbuster Japan	Step-down Subsidiary
19	GAPbuster China Co. Limited	Step-down Subsidiary
20	GAPbuster Worldwide Malaysia Sdn Bhd	Step-down Subsidiary
21	GAPbuster Worldwide Pty Ltd	Step-down Subsidiary

~

Sr. No	Name of component	Relationship
22	Sonata Latin America S. DE R.L. DE C.V.	Step-down Subsidiary

I

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

" in lakhs, except per share data I

		Statement of unaudited consolidated financial results for the quarter and six months ended September 30, 2022
			Quarter ended			Six months ended	Year ended
SI No.	Particulars	September 30, 2022	June 30, 2022	September 30, 2021	September 30, 2022	September 30, 2021	March 31, 2022
		/Unaudited!	/Unaudited I	/Unaudited!	/Unaudited I	/Unaudited!	/Audited!
1 2	Revenue from operations Other income	149,598 1,111	177,886 1,819	96,318 1,352	327,484 2,930	223,172 4,167	555,337 10,198
3	Total Revenue (1 + 21	150,709	179,705	97,670	330,414	227,339	565,535
4	Expenses
	(a) Purchases of Stock-in-Trade	98,231	142,593	60,968	240,824	153,944	401,752
	(b) Changes in inventories of Stock-in-Trade	3,656	(10,523)	(1,411)	(6,867)	(926)	555
	(c) Employee benefits expense	22,228	21,428	17,498	43,656	34,273	73,702
	(d) Finance costs	379	373	472	752	914	1,805
	(e) Depreciation and amortization expense	1,362	1,297	1,170	2,659	2,159	4,732
	(f) Other expenses	10,020	10,224	6,957	20,244	13,477	32,953
	Total expenses	135,876	165,392	85,654	301,268	203,841	515,499
5	Profit before tax (3 - 4)	14,833	14,313	12,016	29,146	23,498	50,036
6	Tax expense
	(1) Current tax	5,169	3,731	3,097	8,900	6,228	14,547
	(2) Provision for tax relating to prior years		20		20
	(21 Deferred tax	(1,607)	(214)	(198)	(1,821)	(520)	(2,154)
7	Profit for the period (5 • 6)	11,271	10,776	9,117	22,047	17,790	37,643
8	Other comprehensive income
	1 (a) Remeasurement of the defined benefit plans	131	(404)	(46)	(273)	(572)	(1,111)
	(bl Income tax relating to Items that will not be reclassified to profit/(loss)	(33)	99	10	66	139	278
	2 Items that will be reclassified to profit or (loss)
	(a) Exchange differences in translating the financial statements of
	foreign operations		31	(400)	31	(288)	478
	(b) Fair value changes on derivatives designated as cash flow hedge, net	(645)	(2,134)	732	(2,779)	579	1,166
	(c) Income tax relating to Items that will be reclassified to profit/(loss)	151	517	(81)	668	(711	(4111
	Total	(3961	(1,891)	215	(2,287)	(2131	400
9	Total Comprehensive Income for the period (7 + 8)	10,875	8,885	9,332	19,760	17,577	38,043
	Of the Total Comprehensive Income above, total comprehensive income
	attributable to:
	Owners of the parent	10,875	8,885	9,332	19,760	17,577	38,043
	Non - controlling interest
		10,875	8,885	9,332	19,760	17,577	38,043
	Of the Total Comprehensive Income above, Profit for the period
	attributable to:
	Owners of the parent	11,271	10,776	9,117	22,047	17,790	37,643
	Non - controlling interest
		11,271	10,776	9,117	22,047	17,790	37,643
	Of the Total Comprehensive Income above, Other Comprehensive Income
	for the period attributable to:
	Owners of the parent	(396)	(1,891)	215	(2,287)	(213)	400
	Non - controlling interest
		(3961	(1,891)	215	(2,287)	(2131	400
10	Paid-up equity share capital (Face Value f 1/-1	1,386	1,039	1,039	1,386	1,039	1,039
11	Other equity (Refer Note SI	108,881	108,881	89,508	108,881	89,508	108,881
12	Earnings per equity share (of, 1/· each) (Refer Note 4 & 61
	(al Basic	8.13	7.78	6.58	15.91	12.84	27.17
	(bl Diluted	8.13	7.78	6.58	15.91	12.83	27.15
	See accompanying notes to the consolidated financial results

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

I Part II			(" in lakhs) I
	Consolidated Balance Sheet
		As at	As at
SI No.	Particulars	September 30, 2022	March 31, 2022
	ASSETS
1	NON-CURRENT ASSETS
	(a) Property, plant and equipment	2,674	1,770
	(b) Right-of-use assets (c) Capital work-in-progress	9,387 792	10,560 1
	(d) Goodwill	23,059	22,072
	(e) Other intangible assets	7,494	8,290
	(f) Financial assets
	(i) Investments	1,467	1,385
	(ii) Other financial assets	3,690	3,795
	(g) Deferred tax assets (net)	5,228	2,613
	(h) Other non-current assets	12,065	11,005
	Total	65,856	61,491
2	CURRENT ASSETS
	(a) Inventories	7,160	293
	(b) Financial assets
	(i) Investments	1,036	14,476
	(ii) Trade receivables	132,119	89,256
	(iii) Cash and cash equivalents	58,939	73,369
	(iv) Bank balances other than (iii) above	3,588	3,594
	(v) Other financial assets	10,263	10,370
	(c) Other current assets Total current assets	6,188 219,293	2,670 194,028
	TOTAL ASSETS	285,149	255,519
	EQUITY AND LIABILITIES
3	EQUITY
	(a) Equity share capital	1,386	1,039
	(b) Other equity	115,086	108,881
	Total	116,472	109,920
	LIABILITIES
4	NON-CURRENT LIABILITIES
	Financial liabilities
	Lease liabilites	8,273	9,173
	Other financial liabilities	4,594	7,427
		12,867	16,600
5	CURRENT LIABILITIES
	(a) Financial liabilities
	(i) Borrowings	10,148	3,800
	(ii) Lease liabilites (iii) Trade payables	2,865 123,672	2,968 105,473
	(iv) Other financial liabilities	3,332	488
	(b) Other current liabilities	7,349	7,595
	(c) Provisions	3,019	2,850
	(d) Current tax liabilities (net)	5,425	5,825
	Total current liabilities	155,810	128,999
	TOTAL EQUITY AND LIABILITIES	285,149	255,519

The disclosure is an extract of the unaudited consolidated Balance Sheet as at September 30, 2022 and audited as at March 31, 2022 in compliance with Indian Accounting Standards (Ind AS).

Consolidated Cash Flow Statement
	I" in Lakhs)
Particulars	For the Half year ended
	September 30, 2022	September 30, 2021
A. CASH FLOW FROM OPERATING ACTIVITIES:
Profit before tax	29,146	23,498
Adjustments for :
Depreciation and amortization expense Finance costs	2,659 752	2,159 865
Impairment loss recognised on trade receivables and bad debts written off	238	(791)
Interest on financial assets at amortized cost	-	(8)
Lease payment concessions	-	(74)
Interest from fixed deposits/margin money with banks	(1,317)	(1,389)
Interest from PSU bonds	(12)	(10)
Interest on income-tax refund Net gain on investments carried at fair value through profit and loss	(71) (302)	(222)
Expenses on employee stock based compensation	301	19
Net unrealized foreign exchange (gain)/ loss	(2,141)	772
Operating profit before working capital changes	29,056	23,543
Adjustments for:
Decrease/(lncrease) in trade receivables	(41,964)	8,820
Decrease/(lncrease) in inventories Decrease/(increase) in other non current financial assets	(6,867) 105	(927) (281)
Decrease/(increase) in other current financial assets	(2,209)	(687)
Decrease/(increase) in other non-current assets	46	(35)
Decrease/(increase) in other current assets	(3,468)	(563)
(Decrease)/lncrease in trade payables	19,255	(1,549)
(Decrease)/increase in other non current financial liabilities	(2,937)	2,181
(Decrease)/increase in other current liabilities	(570)	(4,428)
(Decrease)/increase in provisions Net cash flow from/ {used in) operations	168	155 26,229
	16,897)
Direct taxes/advance taxe paid, net	(10,381)	(5,465)
Net cash flow from/ {used in) operating activities IA)	{17,278)	20,764
B. CASH FLOW FROM INVESTING ACTIVITIES
Expenditure on property, plant and equipment including intangible assets, capital-work-in progr	(2,059)	(285)
Purchase of current investments	(147,293)	(106,972)
Purchase of non-current investments	-	(405)
Cash outflow on acquisition of subsidiary	-	(3,594)
Proceeds from sale of current investments	160,977	103,932
Investments in bank deposits	6	510
Interest received Net cash flow from/ {used in) investing activities 1B)	612 12,243	127 16,687)
C. CASH FLOW FROM FINANCING ACTIVITIES
Payment of lease liabilities	(1,637)	(1,359)
Proceeds from short-term borrowings	11,933	4,104
Repayment of short-term borrowings	(5,716)	(6,480)
Payment of dividend	(13,561) (78)	(10,412) (164)
Interest paid Net cash flow used in financing activities IC)	19,059)	{14,311)
Net increase/{decrease) in cash and cash equivalents IA+B+C)	{14,094)	{234)
Opening cash and cash equivalents	73,369	64,066
Exchange difference on translation of foreign currency cash and cash equivalents	(336)	178
Closing Cash and cash equivalents	58,939	64,010
Cash and cash equivalents at the end of the period comprises:
Cash on hand	1	1
Balances with banks
In current accounts	8,372	10,737
In EEFC accounts	1,182	1,132
In demand deposit accounts	49,384 58,939	52,140 64,010

The Disclosure is an extract of the unaudited consolidated cash flow statement as at September 30, 2022 and September 30, 2021 in compliance with Indian Accounting Standards (Ind AS)

Notes:

1 The statutory auditors, BS R & Co. LLP have expressed an unmodified review opinion on the consolidated finacial results for the quarter and six months ended September 30, 2022. Amounts for the quarter and six months ended September 30, 2021 were reviewed by predecessor auditors and amounts for the year ended March 31, 2022 were audited by predecessor auditors, Deloitte Haskins & Sells LLP. The information presented above is prepared in accordance with the Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016. These unaudited consolidated financial results thereafter have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on October 18, 2022.

The above unaudited consolidated financial results are filed with Stock Exchanges under Regulation 33 of the SEBI (Listing and Other Disclosure Requirements) Regulations, 2015 and are available on the Stock Exchange websites, www.nseindia .com and www.bseindia.com, and on the Company's website, www.sonata-software.com.

2 Unaudited consolidated financial results include financial results of subsidiaries i.e1 Sonata Information Technology Limited, Sonata Software North America lnc.1 Interactive Business Information Systems lnc.1 Sonata Software GmbH, Sonata Europe Limited, Sonata Software FZ-LLC, Sonata Software (Qatar) LLC, Sonata Australia Pty Ltd (formarly known as 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 Ply Limited, Kabushiki Kaisha GAPbuster Japan, Encore Software Services, Inc., Encore IT Services Solutions Private Limited, Sonata Software Intercontinental Limited, Sonata Software Canada Limited and Sonata Latin America S. DE R.L. DE C.V.

3 Based on the financial performance of the company, the Board at its meeting held today, approved an interim dividend of~ 7 per share.

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

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

6 During the quarter Sonata Software Limited (Holding Company) allotted 35,053,102 Equity Shares of Re. 1/- each, credited as fully paid as bonus equity shares to the eligible Members of the holding company whose names appear in the Register of Members of the Company as on the Record Date of 10th September, 2022 in the ratio of 01 (One) new fully paid-up equity share for every 03 (Three)existing fully paid-up equity shares (1:3). The EPS for all the periods presented have been adjusted to this effect as required by "Ind AS 33: Earnings per Share".

7 The consolidated segment wise revenue and results are as follows ·

(~ in lakhs) The consolidated segment wise revenue and results are as follows ·
Particulars		Quarter ended			Six months ended	Year ended
	September 30, 2022	June 30, 2022		September 30, 2021 September 30, 2022 September 30, 2021		March 31, 2022
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
1. Segment revenue
a. India	88,170	111,782	54,806	199,952	131,562	352,234
b. Other than India	61,798	66,160	41,825	127,958	92,084	203,838
Total	149,968	177,942	96,631	327,910	223,646	556,072
Less: Inter segment revenue	(370)	(56)	(313)	(426)	(474)	(735)
Revenue from operations	149,598	177,886	96,318	327,484	223,172	555,337
2. Segment results
Profit before tax and interest
a. India	5,012	4,720	3,259	9,732	6,550	14,113
b. Other than India	9,264	8,849	7,980	18,113	14,121	28,981
Total	14,276	13,569	11,239	27,845	20,671	43,094
Less: Finance costs	(379)	(373)	(472)	(752)	(914)	(1,805)
Add : Unallocable income net of unallocable expenditure	936	1,117	1,249	2,053	3,741	8,747
3. Profit before tax	14,833	14,313	12,016	29,146	23,498	50,036

				(~ in lakhs)
Particulars	September 30, 2022	June 30, 2022	September 30, 2021	March 31, 2022
	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
4. Segment assets
a. India	135,194	128,588	71,713	106,325
b. Other than India	129,074	123,100	91,704	99,151
c. Unallocable	20,881	20,226	44,292	50,043
Total assets	285,149	271,914	207,709	255,519
5. Segment liabilities
a. India	121,389	114,189	50,512	91,814
b. Other than India	41,863	44,820	46,340	44,158
c. Unallocable	5,425	7,608	13,105	9,627
Total liabilities	168,677	166,617	109,957	145,599
6. Capital employed (4-5)	116,472	105,297	97,752	109,920

FOR AND ON BEHALF OF THE BOARD OF DIRECTORS

Srikar Palem Reddy P SRIKAR REDDY MANAGING DIRECTOR Digitally signed by Srikar Palem Reddy Date: 2022.10.18 13:46:17 +05'30'

Place : Bengaluru Date : October 18, 2022

Sonata Software - Consolidated Q2 FY22-23 PAT at ₹ 112.7 Crores; 24% YoY growth, declares interim dividend of ₹ 7 per share Bengaluru, October 18, 2022

Sonata Software, a global IT services and technology solutions company, today reported its unaudited financial results for its 2 nd quarter and six months ended 30th September, 2022.

								₹ in Crores
Description			For the Quarter ended			For the half year ended
	30-Sep-22	30-Jun-22	30-Sep-21	QoQ	YoY	30-Sep-22	30-Sep-21	YoY
Revenues
International IT Services	460.4	436.8	360.8	5 %	28%	897.2	684.7	31%
Domestic- Products & Services	1,040.2	1,343.1	605.5	-23%	72%	2,383.3	1,551.8	54%
Consolidated	1,496.0	1,778.9	963.2	-16%	55%	3,274.8	2,231.7	47%
EBITDA
International IT Services	119.3	116.1	103.5	3 %	15%	235.4	200.6	17%
Domestic- Products & Services	47.1	44.0	33.7	7 %	40%	91.1	66.0	38%
Consolidated	165.7	159.8	136.6	4 %	21%	325.6	265.7	23%
PAT
International IT Services	78.6	76.0	67.3	3 %	17%	154.6	131.0	18%
Domestic- Products & Services	34.1	31.8	23.9	7 %	43%	65.9	46.9	40%
Consolidated	112.7	107.8	91.2	5 %	24%	220.5	177.9	24%

Speaking on the results Mr. Samir Dhir, CEO of the Company said,

The results for the quarter reflect strong growth in our business across our operating markets. We continue to create value for our clients by modernizing their mission-critical platforms. Our strong demand pipeline reflects our focus on large annuity deals. We continue to invest in building deep engineering capabilities to provide highquality, differentiated outcomes for our clients and exciting career opportunities to our engineers globally. We have increased our nearshore delivery presence, most recently developing talent in Ireland, to reach best-in-class talent in every geography we service our clients

Speaking on the results Mr. Sujit Mohanty, MD & CEO of the Sonata Information Technology Limited said,

Our Indian business has continued to show robust growth with increasing percentage of cloud and digital infrastructure contracts. We continue to focus on multi cloud consulting and management, system integration and cloud security offerings to Indian customers.

Performance Highlights for the quarter:

• Consolidated:
• ➢ Revenues at ₹ 1,496.0 crores; YoY growth of 55 %
• ➢ EBITDA at ₹ 165.7 crores; YoY growth of 21%
• ➢ PAT at ₹ 112.7 crores; YoY growth of 24%
• ➢ DSO days at 42 days
• ➢ Cash and equivalents of approximately ₹ 534 Crores (net of borrowings).

• International IT Services:

• ➢ Revenues at ₹ 460.4 crores; YoY growth of 28%
• ➢ Revenue in USD at 57.8 Million, YoY growth of 16.9% in USD terms, QoQ growth in USA of 3.0%.
• ➢ Strong Execution through Platformation™ led growth, IP led growth and Alliance led growth
• ➢ Sonata's approach to Digitizing business using Platformation™
• ➢ EBITDA at ₹ 119.3 crores; YoY growth of 15%
• ➢ PAT at ₹ 78.6 crores; YoY growth of 17%
• ➢ Addition of 12 new customers.
• ➢ Strong cash and liquidity positions maintained. DSO at 46 days.
• ➢ Our pipeline continues to be healthy and strong through multiple new digital wins from existing and new customers.
• Domestic Products & Services:
• ➢ Revenues at ₹ 1040.2 crores; YoY growth of 72%
• ➢ DSO days improved from 38 days to 37 days
• ➢ EBITDA at ₹ 47.1 crores; YoY growth of 40%
• ➢ PAT at ₹ 34.1 crores; YoY growth of 43%

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 560019, India Tel: +91 80 67781999 nandita.v@sonata-software.com