InCred Equities - Sonata Software

	Mar-23A	Mar-24F	Mar-25F	Mar-26F
Revenue (Rsm)	74,491	86,613	103,898	121,674
Operating EBITDA (Rsm)	6,041	7,793	9,312	11,158
Net Profit (Rsm)	4,519	4,850	6,013	7,581
Core EPS (Rs)	16.3	17.5	21.7	27.3
Core EPS Growth	20.0%	7.3%	24.0%	26.1%
FD Core P/E (x)	33.59	31.30	25.24	20.02
DPS (Rs)	15.8	5.4	11.9	15.0
Dividend Yield	1.44%	0.98%	2.18%	2.75%
EV/EBITDA (x)	23.58	18.16	15.51	13.00
P/FCFE (x)	71.88	27.66	22.93	17.98
Net Gearing	(72.0%)	(70.1%)	(42.7%)	(32.3%)
P/BV (x)	11.67	10.38	8.76	7.32
ROE	37.7%	35.1%	37.6%	39.8%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-23A	Mar-24F	Mar-25F	Mar-26F
Total Net Revenues	74,491	86,613	103,898	121,674
Gross Profit	10,603	14,761	17,644	20,283
Operating EBITDA	6,041	7,793	9,312	11,158
Depreciation And Amortisation	(591)	(1,325)	(1,396)	(1,450)
Operating EBIT	5,450	6,467	7,916	9,707
Financial Income/(Expense)	523	(47)	101	401
Pretax Income/(Loss) from Assoc.
Non-Operating Income/(Expense)
Profit Before Tax (pre-EI)	5,973	6,420	8,018	10,108
Exceptional Items
Pre-tax Profit	5,973	6,420	8,018	10,108
Taxation	(1,454)	(1,571)	(2,004)	(2,527)
Exceptional Income - post-tax
Profit After Tax	4,519	4,850	6,013	7,581
Minority Interests
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax
Net Profit	4,519	4,850	6,013	7,581
Recurring Net Profit	4,519	4,850	6,013	7,581
Fully Diluted Recurring Net Profit	4,519	4,850	6,013	7,581

(Rs mn)	Mar-23A	Mar-24F	Mar-25F	Mar-26F
EBITDA	6,041	7,793	9,312	11,158
Cash Flow from Invt. & Assoc.
Change In Working Capital	(1,766)	193	(52)	124
(Incr)/Decr in Total Provisions
Other Non-Cash (Income)/Expense	187
Other Operating Cashflow
Net Interest (Paid)/Received	(185)	(845)	(536)	(195)
Tax Paid	(1,754)	(1,571)	(2,004)	(2,527)
Cashflow From Operations	2,522	5,570	6,719	8,560
Capex	(411)	(82)	(98)	(118)
Disposals Of FAs/subsidiaries
Acq. Of Subsidiaries/investments
Other Investing Cashflow	(8,143)	115	(4,084)	(3,919)
Cash Flow From Investing	(8,553)	33	(4,182)	(4,036)
Debt Raised/(repaid)
Proceeds From Issue Of Shares
Shares Repurchased
Dividends Paid	(2,324)	(1,490)	(3,307)	(4,170)
Preferred Dividends
Other Financing Cashflow	4,191	(2,324)	(2,612)	(1,258)
Cash Flow From Financing	1,867	(3,814)	(5,920)	(5,428)
Total Cash Generated	(4,164)	1,790	(3,382)	(904)
Free Cashflow To Equity	2,112	5,488	6,621	8,442
Free Cashflow To Firm	(5,846)	6,448	3,073	4,719

(Rs mn)	Mar-23A	Mar-24F	Mar-25F	Mar-26F
Total Cash And Equivalents	9,361	10,248	7,402	6,693
Total Debtors	12,362	14,378	17,455	20,441
Inventories
Total Other Current Assets	2,428	2,428	2,428	2,428
Total Current Assets	24,151	27,054	27,285	29,562
Fixed Assets	6,347	5,104	3,807	2,474
Total Investments	559	559	559	559
Intangible Assets	10,984	10,984	10,984	10,984
Total Other Non-Current Assets	1,528	1,528	1,528	1,528
Total Non-current Assets	19,418	18,175	16,877	15,545
Short-term Debt
Current Portion of Long-Term Debt
Total Creditors	12,949	15,157	18,182	21,293
Other Current Liabilities	8,685	6,522	4,162	1,798
Total Current Liabilities	21,633	21,680	22,344	23,091
Total Long-term Debt
Hybrid Debt - Debt Component
Total Other Non-Current Liabilities	8,929	8,929	4,492	1,278
Total Non-current Liabilities	8,929	8,929	4,492	1,278
Total Provisions
Total Liabilities	30,562	30,609	26,836	24,369
Shareholders Equity	13,007	14,620	17,326	20,738
Minority Interests
Total Equity	13,007	14,620	17,326	20,738

	Mar-23A	Mar-24F	Mar-25F	Mar-26F
Revenue Growth	34.1%	16.3%	20.0%	17.1%
Operating EBITDA Growth	30.2%	29.0%	19.5%	19.8%
Operating EBITDA Margin	8.1%	9.0%	9.0%	9.2%
Net Cash Per Share (Rs)	33.73	36.93	26.67	24.12
BVPS (Rs)	46.87	52.69	62.44	74.73
Gross Interest Cover	29.40	7.65	14.77	49.78
Effective Tax Rate	24.3%	24.5%	25.0%	25.0%
Net Dividend Payout Ratio	48.4%	30.7%	55.0%	55.0%
Accounts Receivables Days	52.87	56.34	55.92	56.84
Inventory Days
Accounts Payables Days	67.12	71.39	70.54	71.05
ROIC (%)	137.9%	40.7%	46.6%	52.5%
ROCE (%)	34.4%	35.4%	37.2%	38.3%
Return On Average Assets	11.9%	11.0%	13.3%	16.3%

(91) 22 4161 1543 abhishek.shindadkr@incredresearch.com

(91) 02241611554 smit.gosrani@incredresearch.com

Market Data

Source: Bloomberg