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 ChangeYoY Change
Net SalesRs m8,7469,2879,5242.6%8.9%
Other incomeRs m16812231-74.3%-81.3%
TurnoverRs m8,9149,4099,5561.6%7.2%
ExpensesRs m7,8508,4578,7443.4%11.4%
Gross profitRs m896830781-6.0%-12.9%
DepreciationRs m909210210.6%14.1%
InterestRs m383634-3.4%-10.2%
Profit before taxRs m936824676-18.0%-27.8%
TaxRs m266206177-14.5%-33.6%
Profit after taxRs m671618499-19.2%-25.5%
Gross profit margin%10.28.98.2
Effective tax rate%28.425.026.1
Net profit margin%7.56.65.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster


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.