Sonata Software Limited · NSE:SONATSOFTW
Sonata Software — Q2 FY2015 Earnings Presentation
22 slides from Sonata Software's earnings presentation, November 2014
Slide 1: Investor Presentation – Q2 FY 14-15
Investor Presentation – Q2 FY 14-15 Depth Makes a Difference! © Sonata Software Ltd, 2013. Confidential.
Slide 2: IT that makes a difference to business outcomes
IT that makes a difference to business outcomes transforming strategic business processes 2 Domains Solutions Travel Retail CPG • Multi Channel Commerce Winning the shift to Web Mobile Order Fulfillment • Analytics & Personalization Driven Commerce Systems European Travel Company • CRM & Loyalty Top
Slide 3: Through Deep Technology Expertise..
Through Deep Technology Expertise.. getting technology ready to work for clients 3 World Class Alliances Multi-Channel Commerce, ERP, CRM, Mobile ,BI & Analytics, Social, Cloud 3600 Technology Solution Accelerators New Technology Engagements & Frameworks Applications PE | PDS | EAP Sonnets: E Comm.B
Slide 4: and Deeper Client Commitment!
and Deeper Client Commitment! in translating technology to business results 4 Portfolio of IT Services Solution Consulting Development & Support Implementation Unique Delivery Model Governance Customer specific Value Co-Creation Leadership Reviews Centers of Excellence SLAs & Outcome Proactivity IT
Slide 5: A partner with global reach & quality standards
A partner with global reach & quality standards Reliable service across geographies 5 USA Europe Middle East India APAC ANZ 2600+ people Listed on major ISO-9001, SEI Track Record with 230+ Mio USD across 4 delivery Indian stock CMMi Level 5, Fortune100 consolidated centers exchanges – NSE, ISO20000
Slide 6: A team focused on one thing – your Win!
A team focused on one thing – your Win! Expertise | Commitment | Achievement 6 DEEP THINKING EVERYONE COUNTS PLAY TO WIN PASSION FOR WORK RUN FOR IT INNOVATION The confidence to be a best of breed software professional who can make a difference to clients! © Sonata Software Ltd, 2013. Confidential.
Slide 7: Depth Makes a Difference!
Depth Makes a Difference! 7 Deeper Client Strategic IT Commitment Solutions Provider, Customer specific 2500+ team, 230 Mio Centers of Excellence, USD+ p.a. Outcome based Pricing Deep Technology Global Reach & Expertise Quality World Class Alliances USA, Europe, ME, & Solution APAC, ANZ, India Innov
Slide 8: Sonata Software – Business Structure
Sonata Software – Business Structure 8 Sonata Software Limited Reporting Segment Domestic Products & International IT Services Services Legal Entities Sonata Software Sonata Sonata Sonata FZ LLC Sonata Sonata Rezopia Sonata Information Technology Ltd Europe Ltd Software Software Software Ltd GmbH No
Slide 9: Result Snapshot – Q2 FY 15
Result Snapshot – Q2 FY 15 9 in ` Crores Description For the Quarter ended For the half year ended 30-Sep-14 30-Jun-14 30-Sep-13 QoQ YoY 30-Sep-14 30-Sep-13 YoY Revenues International IT Services 148.85 139.61 119.53 7% 25% 288.51 221.87 30% Domestic- Products & Services 260.73 283.59 305.49 -8% -15
Slide 10: Consolidated - by Quarter
Consolidated - by Quarter 10 INR Crores Revenue EBIDTA 425 387 417 500 341 406 44.1 44.5 60.0 400 35.0 40.0 26.1 32.6 8.8 9.4 300 305 262 284 261 8.0 8.1 207 7.0 200 20.0 25.8 27.1 35.5 35.6 19.6 100 120 128 134 140 149 - - Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 International Se
Slide 11: International IT services – by Quarter
International IT services – by Quarter 11 INR Crores Revenue EBIDTA 150 40.0 100 30.0 134 140 149 120 128 20.0 35.5 35.6 50 25.8 27.1 10.0 19.6 - - Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 PAT QoQ YoY 30.0 25.0 Revenues 7% 25% 20.0 15.0 26.3 25.4 EBIDTA 0.3% 81% 10.0 17.5 18.5 14.
Slide 12: Domestic Product & Services – by Quarter
Domestic Product & Services – by Quarter 12 INR Crores Revenue EBIDTA 400 10.0 5.0 8.0 8.1 8.8 9.4 200 305 7.0 262 284 261 207 - - Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 PAT 6.0 QoQ YoY 4.0 Rev -8% -15% 5.7 5.7 5.0 2.0 3.8 4.1 EBIDTA 6% 34% PAT 1% 15% - Q2-14 Q3-14 Q4-14 Q1-15 Q
Slide 13: Head count
Head count 13 2,856 2,900 110 2,800 2,686 2,596 2,594 2,565 2,700 111 2,600 119 118 120 2,500 2,746 2,575 2,400 2,477 2,476 2,445 2,300 2,200 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 International Service Domestic Products & Service © Sonata Software Ltd, 2013. Confidential.
Slide 14: ROCE & RONW
ROCE & RONW 14 ROCE - Cons 40% 35% 36% 32% 30% 28% 30% 27% 25% 25% 24% 25% 24% 24% 21% 22% 23% 20% 20% 18% RONW - Cons 15% 45% 10% 38% 40% 36% 36% 5% 35% 29% 30% 30% 0% 30% 32% Q2 14 Q3 14 Q4 14 Q1 15 Q215 25% 30% 29% Consolidated Intl Serv Domestic 25% 23% 20% 20% 23% 22% 15% 19% 10% 5% 0% Q2 14 Q3
Slide 15: Day Sales Outstanding
Day Sales Outstanding 15 Consolidated 90 80 81 82 76 70 60 56 50 51 40 30 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 International Services Domestic 80 100 90 90 91 71 85 60 64 80 58 59 70 51 60 59 40 50 40 40 20 30 20 10 - - Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 © Sonata Software Ltd, 2013
Slide 16: International IT Services – Key Metrics
International IT Services – Key Metrics © Sonata Software Ltd, 2013. Confidential.
Slide 17: Revenues
Revenues 17 Revenue $ mn Geography 30.0 150% 25.0 100% 17% 13% 12% 11% 9% Revenue $ mn 20.0 27% 33% 33% 35% 35% 15.0 50% 23.1 24.3 56% 54% 54% 53% 56% 20.5 21.5 10.0 19.0 0% 5.0 Q2 14 Q3 14 Q4 14 Q1 15 Q215 - Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 USA Europe incl UK Rest of World Onsite / Offshore 100% 80% 5
Slide 18: Revenue by Customers
Revenue by Customers 18 Customer Category New Customers 18 18 18 18 18 18 18 18 17 8 17 16 16 6 15 15 4 8 8 14 2 3 4 4 13 Q2 14 Q3 14 Q4 14 Q1 15 Q215 0 Q2 14 Q3 14 Q4 14 Q1 15 Q215 # of Fortune 500 accounts # of million dollar clients Revenue from Top 10 customers Vertical 80% 100% 14% 15% 18% 18%
Slide 19: Rupee - Realization Rates
Rupee - Realization Rates 19 110.00 104 100.00 101 90.00 89 88 87 85 83 80.00 74 75 72 70.00 63 60.00 60 56 57 57 50.00 40.00 Q2 14 Q3 14 Q4 14 Q1 15 Q215 US Dollar Euro GBP © Sonata Software Ltd, 2013. Confidential.
Slide 20: Utilization
Utilization 20 90% 85% 85% 84% 83% 83% 83% 80% 75% 70% 65% 60% Q2 14 Q3 14 Q4 14 Q1 15 Q215 © Sonata Software Ltd, 2013. Confidential.
Slide 21: Notes
Notes 21 • The financials by segment are after appropriate intercompany adjustments. • Consolidated financials include subsidiaries i.e, Sonata Information Technology Limited, Sonata Software North America Inc., Sonata Technology Solutions (India) Limited, Sonata Software GmbH, Sonata Europe Limited
Slide 22: Thank You
Thank You © Sonata Software Ltd, 2013. Confidential.