Sonata Software Limited · NSE:SONATSOFTW
Sonata Software — Q2 FY2018-19 Earnings Presentation
29 slides from Sonata Software's earnings presentation, Nov 2, 2018
Slide 1: Exchange filing cover letter: Investors' Presentation
2nd November, 2018 National Stock Exchange of India Limited BSE Limited Exchange Plaza, Bandra Kurla Complex, P.J. Towers, Dalal Street Mumbai Mumbai Kind Attn: Manager, Listing Department Kind Attn: Manager, Listing Department Email Id: [email protected] Email Id: [email protected] Stock Co
Slide 2: Pioneering with Platformation - Investor Deck Q2 FY 18-19
Pioneering with PLATFORMATION Sonata Software Investor Deck Q2 FY 18-19 Platform-based Digital Business Transformation
Slide 3: 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 4: 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 5: 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 6: Sonata Opportunity: Global trends reshaping Business and IT
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 7: 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 8: 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 9: 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 10: 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 11: 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 12: 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 13: 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 14: 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 15: 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 16: Financials (Q2 2018-19)
mun 4 |ATA SOFTWARE Financials (Q2 2018-19) i
Slide 17: Result Snapshot – Q2 FY 19
Result Snapshot – Q2 FY 19 INR Crores ₹ in Crores Description For the Quarter ended For the half year ended 30-Sep-18 30-Jun-18 30-Sep-17 QoQ YoY 30-Sep-18 30-Sep-17 YoY Revenues International IT Services 275.3 257.1 234.6 7% 17% 532.4 445.8 19% Domestic- Products & Services 325.9 437.1 199.7 -25% 6
Slide 18: Consolidated – Financials
Consolidated – Financials INR Crores Revenue - by Quarter EBIDTA - by Quarter 800.0 75.0 60.0 600.0 45.0 75.4 83.1 90.7 66.1 71.6 400.0 766.7 688.3 30.0 625.8 593.1 426.9 15.0 200.0 - - Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 PAT - by Quarter 50.0 40.0 30.0 49.3 54.8 57.6 62.2 45
Slide 19: Consolidated – Human Capital
Consolidated – Human Capital Attrition % 3,628 3,459 3,476 3,615 3,836 4,000 157 30% 164 163 163 161 3,500 25% 3,000 2,500 20% 18% 17% 3,679 16% 2,000 3,464 3,296 3,313 3,454 15% 16% 1,500 15% 1,000 10% 500 - 5% Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 0% International Service Domestic Products & Service Q2 18
Slide 20: Consolidated – ROCE & RONW
Consolidated – ROCE & RONW ROCE 50% 36% 38% 40% 33% 35% 29% 35% 30% 34% 33% 28% 31% 20% 26% 26% 25% 21% 10% 20% 0% Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Consolidated Intl Serv Domestic RONW 50% 38% 40% 36% 37% 40% 32% 36% 30% 35% 34% 30% 33% 20% 23% 24% 24% 25% 25% 10% 0% Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Conso
Slide 21: Days Sales Outstanding
Days Sales Outstanding Consolidated- Average DSO 60 53 48 50 45 45 42 40 30 20 Q218 Q318 Q48 Q119 Q219 International Services – Average DSO Domestic – Average DSO 50 46 46 59 60 55 41 42 49 40 48 40 38 40 30 20 20 0 Q218 Q318 Q48 Q119 Q219 Q218 Q318 Q48 Q119 Q219 20
Slide 22: International IT services - Financials
International IT services - Financials INR Crores Revenue - by Quarter EBIDTA - by Quarter 300.0 50.0 40.0 250.0 30.0 52.7 56.8 59.8 66.7 73.5 200.0 257.1 275.3 20.0 234.6 240.8 241.8 10.0 150.0 - 100.0 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Revenue $ mn PAT - by Quarter 40.0 38
Slide 23: International IT services – Revenue Mix
International IT services – Revenue Mix Geography Vertical 100% 100% 14% 14% 14% 11% 12% 18% 17% 20% 20% 17% 80% 80% 27% 27% 28% 29% 30% 60% 26% 27% 25% 25% 26% 60% 40% 40% 27% 28% 27% 27% 29% 59% 59% 58% 60% 58% 20% 20% 29% 28% 28% 28% 28% 0% 0% Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q2 18 Q3 18 Q4 18 Q1 19
Slide 24: International IT services – Revenue by Competency
International IT services – Revenue by Competency Competency 100% 5% 4% 4% 3% 3% 6% 5% 5% 6% 7% 90% 8% 7% 8% 8% 7% 80% 17% 19% 17% 16% 35% 17% 70% 4% 4% from 5% 4% Digital 5% 60% 20% 19% 18% 20% 50% 19% 40% 18% 17% 17% 18% 19% 30% 20% 23% 23% 24% 26% 25% 10% 0% Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 ADM Test
Slide 25: IP Lead Revenue
IP Lead Revenue Trend - IP Led Revenues 18.5% 18.0% 17.5% 18.0% 17.0% 16.5% 16.0% 16.3% 15.5% 15.6% 15.0% 15.2% 14.5% 14.0% 13.5% Q3'18 Q4'18 Q1'19 Q2'19 % of International Services Revenue 24
Slide 26: International IT services – Revenue by Customers
International IT services – Revenue by Customers New Customers No. of customers by Geo Middle Asia 12 East ANZ, 7 5 10 2 Europe India 24 8 16 6 12 Revenue from Top Customers 10 11 US 4 8 85% 58 80% 2 4 75% 78% 79% 79% 80% 77% 0 70% 65% 69% 71% 69% 70% 69% Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 60% 61% 60% 62
Slide 27: Forward Cover Realization Rates/ Utilization
Forward Cover Realization Rates/ Utilization Effective Realization Rates 100.00 92 91 87 87 89 90.00 82 79 77 76 78 80.00 70.00 60.00 70 69 69 67 67 50.00 40.00 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 US Dollar Euro GBP Utilisation 86.5% 85.9% 86.0% 85.6% 85.7% 85.3% 85.5% 85.5% 85.0% 84.5% 84.0% 83.5% 83.0%
Slide 28: Domestic Product & Services - Financials
Domestic Product & Services - Financials INR Crores Revenue - by Quarter EBIDTA - by Quarter 600.0 20.0 15.0 400.0 10.0 15.4 15.8 16.7 17.7 530.3 14.0 388.7 437.1 5.0 200.0 325.9 199.7 - - Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 PAT - by Quarter 12.0 10.0 8.0 6.0 9.7 10.4 11.0 8.
Slide 29: 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 Nandita Venkatesh Tel: 91-80-6778-2392 Fax: 91-80-2661 0972 [email protected]