Sonata Software Looking Beyond

With the advent of the ecommerce era,

Sonata Software also transformed its operations on e-lines. It developed a focus

to address the application development needs of dotcom companies from the

conceptual stage to architecture and deployment, both in the B2B and B2C

segments. However, the company was able to grow at 39% only and garnered a

revenue of Rs 174 crore as compared to a growth of 48% and a revenue of Rs 125

crore the previous year.

Software

exports contributed less as compared to domestic operations. While 45% or Rs 79

crore of the total revenue was accrued through software exports, domestic

operations, including agency ones, made a contribution of 55% or Rs 96 crore.

Software exports grew by only 26%,

while domestic sales grew 53%. Agency operations contributed

92% to the domestic revenue with Rs 88 crore, while the company’s own products

and services were able to bring in just Rs 8 crore. The net profit of the

company, on the other hand, went up by 140%. The operating margin also improved

by a shade–17% as against 14% in

the previous year. There was a significant shift towards the offshore business

with the offshore to onsite mix during 1999-00 being 49% versus 51% as compared

to 37% versus 63% in 1998-99.

Ecommerce was the largest contributor

to Sonata’s software exports revenue at 47%, while datawarehousing brought in

12% and the rest was made up by groupware, client server, component technology

and applications integration. The US was the largest destination with 60% of the

exports revenue coming from there, while Europe contributed 39%.

The company is considering overseas acquisitions as

part of its growth strategy, mainly in the US and Europe. It also plans to focus

on ecommerce, mobile ecommerce and solutions based on wireless application

protocol (WAP) for the ensuing year with emphasis on technology, tools and

methodology. DQ

Fact Sheet

START-UP YEAR: 1986 PRODUCTS AND SERVICES: Software

development, package software, consultancy BRANCH OFFICES: 9 DEALER OUTLETS: 600

EMPLOYEES: 827 ADDRESS: 1/4, APS Trust Building, Bull Temple Road, NR Colony,

Bangalore 560 019 TEL: 661 0330 FAX: 661 0972 WEBSITE: www.sonata-software.co