SONATA SOFTWARE Announces Quarterly Results (1QFY21); Net Profit Down 25.5%

Tue, 29 Sep

SONATA SOFTWARE has announced its results for the quarter ended June 2020. Here is a detailed performance review of the same:

SONATA SOFTWARE Quarterly Financials

No. of Mths Qtr. Ending		3 Jun-19*	3 Mar-20*	3 Jun-20*	QoQ Change	YoY Change
Net Sales	Rs m	8,746	9,287	9,524	2.6%	8.9%
Other income	Rs m	168	122	31	-74.3%	-81.3%
Turnover	Rs m	8,914	9,409	9,556	1.6%	7.2%
Expenses	Rs m	7,850	8,457	8,744	3.4%	11.4%
Gross profit	Rs m	896	830	781	-6.0%	-12.9%
Depreciation	Rs m	90	92	102	10.6%	14.1%
Interest	Rs m	38	36	34	-3.4%	-10.2%
Profit before tax	Rs m	936	824	676	-18.0%	-27.8%
Tax	Rs m	266	206	177	-14.5%	-33.6%
Profit after tax	Rs m	671	618	499	-19.2%	-25.5%
Gross profit margin	%	10.2	8.9	8.2
Effective tax rate	%	28.4	25.0	26.1
Net profit margin	%	7.5	6.6	5.2

Year-on-Year Performance:

• The company's operating income during the quarter grew 8.9% on a year-on-year (YoY) basis. The expenses were up by 11.4% YoY during the same period.
• The company's operating profit declined by 12.9% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 8.2% in 1QFY21 as against 10.2% in 1QFY20.
• Depreciation charges increased by 14.1% and finance costs declined by 10.2% YoY, respectively.
• Other income declined by 81.3% YoY during the quarter.
• Net profit for the quarter declined by 25.5% YoY. Net profit margins during the quarter declined from 7.5% in 1QFY20 to 5.2% in 1QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 2.6% on a quarter-on-quarter (QoQ) basis. The expenses were up by 3.4% QoQ during the same period.
• The company's operating profit declined by 6.0% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 8.2% in 1QFY21 as against 8.9% in 4QFY20.
• Net profit for the quarter declined by 19.2% QoQ, while net profit margins declined from 6.6% in 4QFY20 to 5.2% in 1QFY21.

To see how SONATA SOFTWARE has performed over the last eight quarters,please visit here.

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SONATA SOFTWARE Share Price Performance

Over the last one year, SONATA SOFTWARE share price has moved up from Rs 304.7 to Rs 325.3, registering a Gain of Rs 20.6 or around 6.8%.

Meanwhile, the S&P BSE IT Index is trading at Rs 20,186.7 (up 1.7%). Over the last one year it has moved up from 15,312.4 to 20,186.7, a gain of 4,874 points (up 31.8%).

Overall, the S&P BSE SENSEX is down 1.4% over the year.

Current Valuations

At the current price of Rs 325.3, the price to earnings (P/E) ratio of SONATA SOFTWARE stands at 13.2 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 4.5 times.