Sonata Software Looking Beyond


  • Grew 2,400% to gross Rs 175 crore
  • Head stack assemblies got Rs 174 crore.

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.

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

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:

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