Conference Call with Sonata Software Management and Analysts on Q4FY20 Earnings Performance and Outlook. Listen in to the full earnings transcript.
Call Participants: Mr. Srikar Reddy - Managing Director & CEO, Mr. Jagannathan Chakravarthi - Chief Financial Officer, Mr. P.V.S.N Raju - Chief Delivery Officer, Mr. Ranganath Puranik - Chief Growth Officer, Mr. Sujit Mohanty, Head - Technology Infrastructure Business, Mr. Premnath Murthy - Vice President, Mr. R. Sathyanarayana - Head Finance & Accounts
Introductory Remarks from Srikar Reddy
Thank you all and good morning everybody. Welcome to the analyst call post the announcement of our financial results FY20 yesterday late evening and they are out there on the website and we have sent out the press release to all of you. The last two months or so have also been quite dramatic in terms of what has transpired and I am sure all of you have been observing it and experiencing it.
This crisis has a huge business impact and when you hear the various experts talk about it with both sides of the crisis - demand crisis and supply side crisis, a whole lot of dynamic government imposed regulations on what can be done and not done. So, it's been quite unprecedented in terms of the speed and revolution of the event and it has impacted our self ability and businesses to run smoothly.
We have to act actively and quickly. The first and foremost issue was the safety of our people wherever they were in the world and ensuring the rights needed to be done to ensure that people do not take any risk in trying to get their work done and getting exposed to these kinds of stuff. So, that was priority one for us and with that I should say very actively that nobody from the Sonata family has been affected by this.
I am very happy to inform you that in just 2-3 days, the Sonata Software specially in India were asked to work from home. Today we are 100% of Sonata people connected to work from home and are able to deliver work. Also, these people have been productive and were able to do different kinds of work whether project work, agile development work, ERP presentation work, etc from all different services have been delivered over the last 45 days. By these days, people have been used to different tools and systems to both collaborate with plants and internally to be able to deliver this work very effectively over the last 45 days.
Financial Highlights from Jagannathan Chakravarthi
Revenue stood at Rs 928.7 crore sequentially. There was a degrowth of 24.9%. This is basically because of our India business. There is a growth of around 11.1% YoY basis
EBITDA for the year at consolidated level is at Rs 95.2 crore sequentially. This had a degrowth of 19.5% and YoY there was a degrowth of about 1.7%
The PAT for the quarter is Rs 61.8 crores sequentially. There was a degrowth of 18.6% and YoY there was a degrowth of 5.5%
The return on capital employed on consolidated level is 33%
There was a little increase in the consolidated DSO in this quarter
For the whole year, the revenue stood at 3743.3 crore. That is a sequential growth of 36.4%
EBITDA for the whole year is Rs 131.2 crores. There is a sequential growth of about 17.9% YoY
For international IT services - the break up of Q4 revenue is around Rs 325.5 crore. There is a sequential degrowth of 1.3% and YoY 7% growth. This contributed about 35% of our consolidated revenue
EBITDA for the quarter is Rs 72.3 crores. There is a sequential degrowth of 21.1% and YoY is about 4.6%
PAT for the quarter is Rs 45.2 crores, sequential degrowth of 71.8% and YoY degrowth of 13.9%. This contributed to 73.2% of consolidated cash
There was an addition of 6 new customers during the quarter. International head count is at 4,066 accounts as of March 31st, 2020
The return on capital employed is 35% return on net worth is 35%
For the financial year, the revenue was Rs 1,272.6 crore. There is a sequential growth of 13.6% and this contributed YoY 34% of consolidated revenue
The domestic business revenue for the quarter is Rs 607 crores. Compared to the last quarter, there is a degrowth of 33.4%. EBITDA for the quarter is Rs 23.2 crore. QoQ there is a degrowth of 7.9% and there is a growth of 9.3% YoY. PAT is at Rs 16.6 crores and there is a QoQ degrowth of 8.2% and YoY growth of 28.9%
For the whole year, revenue from domestic business is at Rs 2,492.2 crore. There is YoY growth of 33.8%. This contributed to 66.6% of the consolidated revenue. EBITDA for the year is Rs 95.1 crore, the YoY growth is at 76.1% , PAT is Rs 64.4 crores, YoY growth is about 39.2%