AI assistant
Sonata Software Ltd. Investor Presentation 2019
60845_rns_2019-02-08_156826b1-7891-49ed-be49-4700621ae5f1.pdf
Investor Presentation
Open in viewerOpens in your device viewer
8th February, 2019
National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Mumbai Kind Attn: Manager, Listing Department Email Id: [email protected] Stock Code - SONATSOFTW
BSE Limited P.J. Towers, Dalal Street Mumbai Kind Attn: Manager, Listing Department Email Id: [email protected] Stock Code - 532221
Sub: Investors' Presentation
Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing Investors' Presentation for the quarter ended 31st December, 2018.
The details of above said presentation is also made available at the Company's website www.sonatasoftware.com.
Kindly take the same on record.
Thanking you,
Yours faithfully,
For Sonata Software Limited
Kundan K. Lal Company Secretary and Compliance Officer
PLATFORMATION Pioneering with
Sonata Software Investor Deck Q3 FY 18-19
Platform-based Digital Business Transformation
Disclaimer
This presentation may include statements which may constitute forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, business development, market position, expenditures, and financial results, are forward looking statements. Forward looking statements are based on certain assumptions and expectations of future events and involves known and unknown risks, uncertainties and other factors. Sonata Software Limited (The "Company") cannot guarantee that these assumptions and expectations are accurate or exhaustive or will be realized. The actual results, performance or achievements, could thus differ materially from those projected in any such forwardlooking statements. No obligation is assumed by the Company to update the forward-looking statements contained herein.
The information contained in these materials have not been independently verified. None of the Company, its Directors, Promoter or affiliates, nor any of its or their respective employees, advisers or representatives or any other person accepts any responsibility or liability whatsoever, whether arising in tort, contract or otherwise, for any errors, omissions or inaccuracies in such information or opinions or for any loss, cost or damage suffered or incurred howsoever arising, directly or indirectly, from any use of this document or its contents or omission or otherwise whatsoever in connection with this document, and makes no representation or warranty, express or implied, for the contents of this document including its accuracy, fairness, completeness or verification or for any other statement made or purported to be made by any of them, or on behalf of them, and nothing in this document or at this presentation shall be relied upon as a promise or representation in this respect, whether as to the past or the future. The information and opinions contained in this presentation are current, and if not stated otherwise, as of the date of this presentation. The Company relies on information obtained from sources believed to be reliable but does not guarantee its accuracy or completeness. The Company undertake no obligation to update or revise any information or the opinions expressed in this presentation as a result of new information, future events, developments or otherwise. Any opinions or information expressed in this presentation are subject to change without notice.
Sonata Vision
A world class firm that is a benchmark for Catalyzing Business Transformation for our Clients, Fulfilling Employee Aspirations & Caring for our wider Community
through Depth of: Thought Leadership Customer Centricity Execution Excellence
For the Customers
IT Partner of choice for transformation thru deeper industry, technology & customer focus
For the Employee
A fun & fearless environment where the potential & passion for work flourishes
For the Community
CSR initiatives to support IT needs of projects with Social impact
'86-'92 : Indian Software Product Pioneer
| '92 –'12 : 360 IT Service Provider | ||||
|---|---|---|---|---|
| Produced anddistributed its ownportfolio ofsoftware products | Extends corecapability toservices inSoftwareEngineering,Implementationand Redistribution | '13 –'16 Digital | '17+Platformation | |
| Industry focusedglobal digitalsolutions provider | Platform and IPLed Digital |
Sonata Opportunity
Global trends reshaping Business and IT
Digital
- On agenda of 2/3rd of Global 2000 Cos CEOs
- 80% of all incremental IT spend, USD 2.4 Tn market by 2025 on Digital
Platform
- Over 30+ 'born digital' platform cos in S&P 500 by 2020.
- Two thirds of all new applications to be Cloud native architected, CD CI enabled in next two years.
- Five fold increase in Cloud Industry platforms by 2018
Born Digital Platform Unicorns
| OPEN | SCALABLE | CONNECTED | INTELLIGENT | |||
|---|---|---|---|---|---|---|
| Global Online RetailLeader | Top P2P HospitalityMarketplace | |||||
| World Leading TaxiHailing App | Top Chinese B2BCommerce Marketplace |
Helping traditional Businesses make the transition to digital & platform
Sonata strategy : Platformation
Industry specific Focus
- Travel
- Retail
- Distribution
- ISV
Sonata Platform based Technology
- Ready -Industry Platform IP
- Accelerate ISV Partner Platform
- Custom Platform
Growth Engines led
- Vertical
- IP led
- Alliance Led
- Existing Customer Led
- Digital Infrastructure
Industry specific Digital Transformation thru Platforms Open , Connected, Scalable, Intelligent Businesses
Execution – Proprietary Methodology to enable Platforms
7
Execution – Enabling Digital Platform Infrastructure
Core Enterprise Infrastructure migration to Cloud Platforms for cost optimization Leading Brewery Company
Patient care enhancement thru collaborative work tools for doctors Leading Hospital Chain
Enhanced business responsiveness thru next gen IT Appliances Leading Bank
Execution - Innovative engagement models
Sonata is a very important extension of the team and over the years has made a significant contribution to our success in serving our customers better than anyone else in our business sector.
Director IT Fortune 500 Travel Co
Decade+ Relationships with marquee Fortune 500 Customers
World Leading Tour Operator
Global F&B CPG Leader
Global Retail Leader Global Software
Technology Leader
Execution - Strong Alliances
- Gold Partner for 13 Competencies including ERP, Analytics, Cloud, Productivity & Communications.
- 3 Industry specific IP live on Microsoft AppSource Brick & Click Retail, Modern Distribution and Rezopia. GISV status.
- Select ISV Dev Centre Partner with unique Dynamics Operations & CRM capability
- Country Partner of Year India 2013,15,16. Industry Partner of Year US 2015.
- Global Silver Partner for SAP Hybris Commerce.
- Travel, Retail and Distribution industry specific solutions capability
- SAP Pinnacle Award 2013, SAP Hybris Most Innovative Partner of Year 2012
- Extended SAP Cloud for Customer solutions capability
Sonata has been an important partner in our journey for over a decade. The expertise they bring to the table makes them a valuable part of the ecosystem.., its partners, and customers, who seek to get more out of our enterprise-class business solution.
VP – Engineering, Leading Global Software Company
Execution - Strategic Acquisitions
Rezopia
- Cloud based travel ERP SaaS
- Enhanced to wider digital travel platform with Commerce, Mobility & Analytics
- Sub vertical specific solutions – Tour Operator, Corporate, Rail
Halosys
- Unified Enterprise Mobility Platform
- Integrated to Sonata industry specific platform IP to extend their mobile capability
- Pre-built industry specific Apps – Shopping, Mass Distribution, Travel Assistant
| IBIS Inc. | |
|---|---|
- Advanced Supply Chain Management Software for Dynamics
- Extended to Modern Distribution Platform with Commerce and Field Sales Apps
- Dynamics capability & US Geo footprint
Enablers - Strong People and Processes Foundation
SEI CMMI L5, ITIL, ISO 27000 certified processes Agile & DevOps Capable
| Deeper roles | Regular exposure to newer technologies, evolvingbusiness scenarios, and building cross-functional expertise |
|---|---|
| Customer | Continuous exposure to clients to assess business impact |
| Impact | of solutions delivered |
| Freedom | Our flexible working style encourages ideation within |
| to contribute | broad boundaries |
| Growth | Early identification, mentoring and nurturing of talent forgrowth by senior leaders |
We need to take a pause and appreciate the drive and determination we have seen from every player on what is a complex effort and delivery. We commend you all for your effort…keep up the good work!
Director – Platform Systems, US Travel Leader
Enablers – Strong Governance and financials
- Listed Company ( NSE and BSE)
- Best-in-Class Board and Top management Profiles
- Consistent Track record of Growth, profitability and Dividend
- RoE and RoCE > 25%
- Revenue Growth at 15%+ CAGR over last 4 years
- PAT growth at 25 %+ CAGR for 4 years
- Strong Balance sheet
- Regular Dividend payout
A responsible corporate citizen - Platforms for social good
Designed and developed an omnichannel-enabled craft storefront to drive market access for handicraft producers
Partner: Industree Crafts Foundation
Built a multipurpose technology platform combining storefront, virtual classrooms, and digital archives
Partner: WomenWeave - The Handloom School
Fostering next-gen business ideas through technology incubation in a top Indian engineering college
Partner: CEDI-NITT
Financials (Q3 2018-19)
| ₹in | Crores | |||||||
|---|---|---|---|---|---|---|---|---|
| Description | theendedQuarterFor | theninemonthsendedFor | ||||||
| 31-Dec-18 | 30Sep-18- | 31-Dec-17 | QoQ | YoY | 31-Dec-18 | 31-Dec-17 | YoY | |
| Revenues | ||||||||
| InternationalITServices | 2840 | 2753 | 2408 | 3% | 18% | 8164 | 6867 | 19% |
| Products&DomesticServices- | 5632 | 3259 | 5303 | 73% | %6 | 13263, | 11581, | 15% |
| Consolidated | 8440 | 5931 | 7667 | 42% | 10% | 21254, | 18281, | 16% |
| EBITDA | ||||||||
| InternationalITServices | 760 | 735 | 568 | 3% | 34% | 2162 | 1593 | 36% |
| Products&DomesticServices- | 195 | 177 | 154 | 10% | 26% | 539 | 446 | 21% |
| Consolidated | 951 | 907 | 716 | 5% | 33% | 2688 | 2022 | 33% |
| PAT | ||||||||
| InternationalServicesIT | 521 | 512 | 401 | %2 | 30% | 1506 | 1117 | 35% |
| ProductsDomestic&Services- | 120 | 110 | 92 | 9% | 31% | 334 | 261 | 28% |
| Consolidated | 641 | 622 | 493 | 3% | 30% | 1839 | 1378 | 33% |
Consolidated – Financials
INR Crores
Consolidated Revenue - by Quarter
Consolidated EBIDTA - by Quarter
Consolidated – Human Capital
Diversity
Men Women
Consolidated – ROCE & RONW
ROCE
RONW
International IT services - Financials
INR Crores
International Services Revenue - by Quarter
Internatonal Services EBIDTA - by Quarter
Revenue $ mn
International Services PAT - by Quarter
Geography
Vertical
OPD TTL Retail Distribution Others
Onsite Offshore
Onsite / Offshore
Revenue Type
International IT services – Revenue by Competency
Competency
ADM Test AX ERP IMS/Cloud BI E-Commerce Mobility
IP Lead Revenue
International IT services – Revenue by Customers
New Customers
Revenue from Top Customers
Europe 26 US 55 India 18 Middle East 2 ANZ, 7 4
Asia
No. of customers by Geo
Europe US India Middle East ANZ Asia
No. of customers by Vertical
Top 5 Customer Top 10 Customer Top 20 Customer 20 21 21 22 23 22 21 24 26 25 25 26 27 27 28 Customer Category
of Fortune 500 accounts # of million dollar clients No. of Global 2000 customers
Q3 18 Q4 18 Q1 19 Q2 19 Q3 19
Forward Cover Realization Rates/ Utilization
- 2.0 4.0 6.0
Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19
PLATFORMATION Pioneering with
CONTACT US:
INVESTOR ENQUIRIES Karvy Consultants Ltd Tel : 91-80-2662 0003/4/5 Fax : 91-80-2662 1169 [email protected]
MEDIA ENQUIRIES Nandita Venkatesh Tel: 91-80-6778-2392 Fax: 91-80-2661 0972 [email protected]