Sonata Software is an IT solutions company primrily in travel & tourism and product engineering domain. They have been resellers of Microsoft and IBM tools for a while. The co. is owned by Rahejas and Ghias. In 2010 there were news of promoters wanting to exit the business and HCL, others evincing interest.
They have had bad FY12 and H1 FY13 numbers due to issues in TUI Infotech, a company they had acquired in 2006 in Germany. Last year they sold this off and booked losses for this, this was not actual cash flow.
Currently the company has cash of 172 cr. (mgmt conservatively indicates this to 140 cr adjusting for working capital).
The company seems to be turning around and has done some new tie ups with Oracle Axalytics, Tibco. Will be an interesting play as the stock had been beaten down considerably when it was reporting losses.
Hemedra Kothari recently picked up stake from Bhupathi investments. Bhupathi investment has had some pledge and has been reducing stake for a while some of which earlier have been picked by Rahejas.
There were also a few resignations of top management but this also now seems to be inline with Srikar Reddy at helm, he also has more than a percent share.
Numbers:
Mcap: 261 cr.
Cash: 172 cr.
Qtly
Dec-12 Sep-12 Jun-12 Mar-12 Dec-11 Sep-11 Jun-11 Mar-11
Sales 396.95 380.35 404.57 319.47 411 390.06 339.52 326.31
NP 8.64 (26.00) (40.65) (22.36) (12.68) 12.07 5.64 25.71
EPS 0.82 – -- – -- 1.15 0.54 2.45
Yearly
FY08 FY09 FY10 FY11 FY12
ROCE 36.23 40.09 32.75 24.58 0.72
RONW 35.44 32.11 26.83 23.16 -4.3
Sales 1,468.29 1,593.12 1,402.54 1,406.41 1,607.82
NP 58.52 76.57 79.88 85.61 -2.59
EPS 5.38 7.02 7.31 7.81 0
Dividend(%) 110 150 170 200 75