Sonata Software posts good Q1 results and Aquires California-based Halosys

Sonata Software, a global strategic IT services and technology solutions company recently announced its June quarter results. The company reported 19 per cent year on year growth in PAT, which stood at Rs 38.2 crore in Q1FY16 as compared to Rs 32.05 crore in Q1FY15. The company also signed a definitive agreement to acquire through its US subsidiary, a 100 per cent stake in the Halosys, a California, USA headquartered company which provides enterprise mobility enablement technology.

On Sequential basis Sonata Software reported 22.03 per cent growth in operating revenue, to Rs 479.16 crore in Q1FY16 compared to Rs 392.66 crore in Q4FY15. Segment-wise company's revenue from India increased by 36 per cent in Q1FY16 compared to the last quarter and as a result its contribution to the total revenue reached at 66 per cent. Remaining 34 per cent revenue coming from international IT services, it is also increased by 2 percent against the last quarter.

Its operating expenditure was up by 24.24 per cent to Rs 431.04 crore in Q1FY16 against Rs 346.94 crore in Q4FY15. The company's operating expense increased mainly due to 35.58 per cent rise in purchase of traded goods, which stands at Rs 297.52 crore in Q1FY16 as compared to Rs 219.44 crore in Q4FY15. The company also reports 7.86 per cent increase in other expenses as well as employee cost incremented by 4.49 per cent compared to the last quarter.

The EBITDA was boosted by 5.59 per cent on sequential basis to Rs 48.12 crore in Q1FY16 and its EBITDA margin contracted by 160 basis points to 10.04 per cent as compared to last quarter, led by increased operating cost. While, its PBT jumped by 10.36 per cent from Rs 48.46 crore in Q4FY15 to reach Rs 53.48 crore in Q1FY16, mainly due to exceptional item which includes Rs 2.72 crore interest income received on the Income-tax refund. Its PAT margin contracted by 90 basis points to reach 7.97 per cent compared to last quarter.

Sonata Softwares shareholding pattern indicates that FII holdings expanded by 165 basis points to 9.85 per cent and DII holdings expanded by 22 basis point to 0.48 per cent during Q1FY16.

Halosys provides a single Unified Enterprise Mobile Enablement platform, which allows businesses to have a 360 degree coverage on their mobility programs and enables businesses build, secure, manage and deploy an enterprise wide mobile applications portfolio.Through this acquisition company aiming in providing an end to end mobile solutions to customers. The acquisition cost accounts to USD 5 million, it has been done for an upfront payment of USD 2 million and remaining USD 3 million payable over the next three years.