Sonata net up 18 percent in first quarter

Bangalore, July 20 (IANS) Sonata Software posted consolidated net profit of Rs.18 crore in the first quarter (April-June) of this fiscal (2010-11), registering 11 percent year-on-year (YoY) growth, the IT consulting and services firm said Tuesday.

In a regulatory filing, the Bangalore-based company said revenue for the quarter under review also grew 11 percent YoY to Rs.63 crore under the Indian accounting standard.

‘Growth from top 10 customers and building up a strong pipeline have been the high point of the first quarter this fiscal. We had a positive growth despite currency volatility and challenging situation in Europe,’ Sonata Managing Director B. Ramaswamy said in a statement here.

The tech firm’s earnings before interest, depreciation, taxes and amortization (Ebidta) increased 12 percent YoY to Rs. 18.17 crore.

Return on net worth and return on capital employed was at 20 percent as against 25 percent and 27 percent respectively in like period of previous fiscal (2009-10)

‘Cash from operations rose marginally to Rs.19.26 crore from Rs.18.49 crore year ago and cash reserves shot up to Rs.58 crore from Rs.31 crore year ago,’ Ramaswamy said.

The company won a deal during the quarter from a British supplier of taxi management services and an enterprise resource planning (ERP) project from water and waste management service in Britain.

Similarly, a large supply chain and logistics vendor engaged Sonata to integrate their transportation optimization planning system.

‘We have also developed a knowledge management solution to a leading state-run bank to facilitate seamless content and information access to its call centre agents. The IBM web sphere portal server will act as a ready reference to all bank products and help agents to respond to customer queries,’ Ramaswamy added.

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