Sonata Software Limited · NSE:SONATSOFTW
Sonata Software — Q2 FY2017-18 Earnings Presentation
28 slides from Sonata Software's earnings presentation, November 2017
Slide 1: Pioneering with Platformation
Pioneering with PLATFORMATION Sonata Software Investor Deck Q2 FY 17-18 Platform-based Digital Business Transformation
Slide 2: Disclaimer
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,
Slide 3: Sonata Vision
Sonata Vision For the Customers IT Partner of choice for transformation A world class firm thru deeper industry, technology & that is a benchmark for customer focus Catalyzing Business Transformation for our Clients, Fulfilling Employee Aspirations & Caring for our wider Community For the Employee A
Slide 4: Sonata - Evolution
Sonata - Evolution ’86-’92 : Indian Software Product Pioneer ’92 – ’12 : 360 IT Service Provider Produced and distributed its own ’13 – ’16 Digital portfolio of Extends core software products capability to ’17+Platformation services in Industry focused Software global digital solutions provider Plat
Slide 5: Sonata Opportunity
Sonata Opportunity Global trends reshaping Business and IT Born Digital Platform Unicorns 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 OPEN SCALABLE CONNECTED INTELLIGENT Platform Global Online Retail Top P2P Hospitality
Slide 6: Sonata strategy: Platformation
Sonata strategy : Platformation Industry specific Focus Sonata Platform based Growth Engines led • Travel Technology • Vertical • Retail • Ready -Industry Platform IP • IP led • Distribution • Accelerate - ISV Partner • Alliance Led • ISV Platform • Existing Customer Led • Custom Platform • Digital
Slide 7: Execution – Proprietary Methodology to enable Platforms
Execution – Proprietary Methodology to enable Platforms Sonata READY Sonata ACCELERATE Sonata CUSTOM • End-to-end, industry- • Popular horizontal ISV • Sonata engineers custom specific Sonata digital partner platforms with platforms that deliver business platform IP Sonata adding required unique dig
Slide 8: Execution – Enabling Digital Platform Infrastructure
Execution – Enabling Digital Platform Infrastructure Datacenter Cloud Advanced Enterprise Modernization Computing Analytics Mobility Consult Procure Deploy Support Productivity & Enterprise Security Collaboration Applications Solutions Core Enterprise Infrastructure migration Patient care enhancemen
Slide 9: Execution - Innovative engagement models
Execution - Innovative engagement models Customer-Specific Center of Excellence Sonata is a very important extension of the team and over the years has made a • Governance • Value Co-creation significant contribution to our • Leadership role • SLAs and outcomes success in serving our • Strategic met
Slide 10: Execution - Strong Alliances
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 Dynam
Slide 11: Execution - Strategic Acquisitions
Execution - Strategic Acquisitions Rezopia Halosys IBIS Inc. • Cloud based travel ERP SaaS • Unified Enterprise Mobility • Advanced Supply Chain • Enhanced to wider digital Platform Management Software for travel platform with • Integrated to Sonata industry Dynamics Commerce, Mobility & specific pl
Slide 12: Enablers - Strong People and Processes Foundation
Enablers - Strong People and Processes Foundation Regular exposure to newer technologies, evolving Deeper roles business scenarios, and building cross-functional expertise Customer Continuous exposure to clients to assess business impact Impact of solutions delivered Freedom Our flexible working sty
Slide 13: Enablers – Strong Governance and financials
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 • S
Slide 14: A responsible corporate citizen - Platforms for social good
A responsible corporate citizen - Platforms for social good Designed and developed Built a multipurpose Fostering next-gen business an omnichannel-enabled technology platform combining ideas through technology craft storefront to drive storefront, virtual classrooms, incubation in a top Indian marke
Slide 15: Financials (Q2 2017-18)
moun 4 |ATA SOFTWARE Financials (Q2 2017-18)
Slide 16: Result Snapshot – Q2 FY 18
Result Snapshot – Q2 FY 18 INR Crores Description For the Quarter ended For the half year ended 30-Sep-17 30-Jun-17 30-Sep-16 QoQ YoY 30-Sep-17 30-Sep-16 YoY Revenues International IT Services 234.6 211.3 209.1 11% 12% 445.8 404.9 10% Domestic- Products & Services 199.7 428.1 295.5 -53% -32% 627.8 7
Slide 17: Consolidated - Financials
Consolidated - Financials INR Crores Revenue - by Quarter EBIDTA - by Quarter 75.0 800.0 60.0 600.0 45.0 400.0 30.0 59.8 64.9 57.2 64.5 66.1 593.2 687.7 634.5 200.0 500.5 426.9 15.0 - - Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 PAT - by Quarter 50.0 40.0 30.0 20.0 41.4 43.0 45.4 38
Slide 18: Consolidated – Human Capital
Consolidated – Human Capital 3,000 Attrition % 25% 23% 20% 2,000 19% 3,418 3,464 18% 3,147 3,161 3,213 15% 15% 14% 1,000 10% 5% - Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 0% Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 International Service Domestic Products & Service Diversity Head count mix 120.0% 3,500 395 410 100.0% 369
Slide 19: Consolidated – ROCE & RONW
Consolidated – ROCE & RONW ROCE 40% 30% 30% 29% 30% 27% 28% 24% 25% 22% 27% 20% 21% 25% 23% 25% 20% 19% 10% 0% Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Consolidated Intl Serv Domestic RONW 40% 33% 31% 32% 29% 28% 28% 28% 30% 29% 28% 25% 30% 29% 27% 26% 23% 20% 10% 0% Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Consolidated
Slide 20: Days Sales Outstanding
Days Sales Outstanding Consolidated 100 88 86 90 79 80 69 70 70 66 60 50 40 30 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 International Services Domestic 70 160 58 58 135 60 140 50 50 47 47 120 110 41 95 100 40 81 76 80 69 30 60 20 40 10 20 - - Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q1-17 Q2-17 Q3-17 Q4-17 Q1
Slide 21: International IT services - Financials
International IT services - Financials INR Crores REVENUE - BY QUARTER EBIDTA - BY QUARTER 260.0 50.0 240.0 40.0 220.0 200.0 30.0 50.8 49.8 52.7 180.0 46.4 44.0 20.0 160.0 234.6 209.1 206.5 204.0 211.3 10.0 140.0 120.0 - 100.0 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 REVENUE $ MN
Slide 22: International IT services – Revenue Mix
International IT services – Revenue Mix Geography Vertical 120% 120% 100% 100% 15% 15% 16% 14% 14% 17% 17% 18% 18% 18% 80% 80% 26% 24% 24% 26% 27% 23% 27% 26% 24% 26% 60% 60% 40% 40% 28% 26% 27% 28% 27% 59% 60% 60% 60% 59% 20% 20% 31% 30% 30% 29% 29% 0% 0% Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q2 17 Q3 17 Q
Slide 23: International IT services – Revenue by Competency
International IT services – Revenue by Competency COMPETENCY 32% ADM Test AX ERP IMS/Cloud BI E-Commerce Mobility from 5% 5% 6% 5% 6% 5% 5% 5% 6% Digital 6% 9% 8% 8% 7% 9% 18% 17% 19% 20% 19% 5% 5% 4% 5% 5% 15% 15% 15% 17% 19% 16% 17% 17% 19% 18% 25% 24% 25% 23% 23% Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 23
Slide 24: IP Led Revenues
IP Led Revenues Trend - IP Led Revenues 15% 15% 14% 14% 14% 13% 13% 12% Q3'17 Q4'17 Q1'18 Q2'18 % of International Services Revenue 24
Slide 25: International IT services – Revenue by Customers
International IT services – Revenue by Customers No. of customers by Geo New Customers 10 Asia 9 10 Europe, 14 8 Middle East ANZ, 7 1 7 6 5 10 India, 17 4 3 6 6 Revenue from Top Customers 5 2 3 US, 55 1 85% 0 80% Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 75% 80% 81% 78% 79% 78% 70% 71% 70% 70% 65% 70% 69% 60% 6
Slide 26: Forward Cover Realization Rates/ Utilization
Forward Cover Realization Rates/ Utilization Effective Realization Rates 110.00 105 105 100.00 100 99 90.00 92 78 80 79 80.00 78 79 70.00 70 69 70 71 70 60.00 50.00 Utilization 40.00 86.0% Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 85.4% 85.3% 85.5% 85.2% 85.1% US Dollar Euro GBP 85.0% 84.8% 84.5% 84.0% 83.5% 83
Slide 27: Domestic Product & Services - Financials
Domestic Product & Services - Financials INR Crores Revenue - by Quarter EBIDTA - by Quarter 600.0 15.5 500.0 15.0 400.0 14.5 300.0 15.1 488.1 14.8 200.0 393.0 428.1 14.0 295.5 14.2 14.1 14.0 100.0 199.7 13.5 - Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 8.6 PAT - by Quarter 8.5 8.4
Slide 28: Pioneering with Platformation – Contact Us
Pioneering with PLATFORMATION CONTACT US: INVESTOR ENQUIRIES Karvy Consultants Ltd Tel : 91-80-2662 0003/4/5 Fax : 91-80-2662 1169 [email protected] MEDIA ENQUIRIES Anoop Janardanan Tel: 91-80-6778-2392 Fax: 91-80-2661 0972 [email protected]