Sonata Software profits rise

BANGALORE, OCT 7: Sonata Software Ltd has declared an interim dividend of 15 per cent, riding on a 131 per cent surge in its net profit f...

BANGALORE, OCT 7: Sonata Software Ltd has declared an interim dividend of 15 per cent, riding on a 131 per cent surge in its net profit for the quarter ended September 30, 1999. The company has clocked a net profit of Rs 5.49 crore Rs 2.38 crore on a total turnover of Rs 44.75 crore Rs 28.08 crore during the period. The growth in turnover was 59.34 per cent, while export revenue was 44 per cent of the total income.

Anticipating the performance, the Sonata scrip on the BSE on Wednesday touched Rs 794.90. The scrip opened at Rs 736.05, while volume traded was more than 30,000.

Revenue from products division, infotech consulting division and business solutions group was 53 per cent, 1 per cent and 2 per cent respectively during the quarter.

For the healf-year ended September 30, 1999, the company8217;s net profit was Rs 9.78 crore Rs 4.41 crore, registering a 121.72 per cent rise. Turnover of the company during the period was Rs 80.78 crore Rs 53.82 crore, a growth of 50.09 per cent. During the firsthalf, the company has made a provision of Rs 0.76 crore for taxation.

During the period, revenue from exports was 46 per cent of the total turnover, while income from products division, IT consulting division and business solutions group was 50 per cent, 1 per cent and 3 per cent respectively.

According to Ramaswamy, the increase in net is a continuing vindication of the strategies adopted by the company. It may be recalled that in May 1999, Sonata had declared a dividend of 30 per cent for the full year-ended March 31, 1999.

The board of directors of the company on Thursday adopted a policy of best practices on insider trading incorporating the Sebi guidelines on insider trading. 8220;This step is a part of Sonata8217;s commitment to good corporate governance and greater transparency to the investor,8221; he added.

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Sonata Software is now looking at acquisitions of infotech companies in the service sector in the US. The purpose is to enhance the company8217;s presence in major markets including the European Unionas part of its growth strategies.

Sonata is planning to appoint an international consultant to frame the modalities for the purpose within the next six months. 8220;We have not yet identified any companies on this front,8221; Sonata Software president and managing director B Ramaswamy told The Indian Express.

8220;The company should be fit into our marketing strategies and size does not really matter. We are looking for a infotech firm with more than Rs 50 crore revenue. However, the company is yet to earmark funds for the proposed acquisition,8221; he added.