InCred Equities - Sonata Software

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Revenue (Rsm)	86,131	101,209	101,894	110,903
Operating EBITDA (Rsm)	7,274	7,028	7,948	8,928
Net Profit (Rsm)	3,085	4,386	5,321	6,093
Core EPS (Rs)	15.3	15.8	19.1	21.9
Core EPS Growth	(5.9%)	3.0%	21.1%	14.5%
FD Core P/E (x)	31.63	22.28	18.40	16.07
DPS (Rs)	7.9	9.9	13.3	15.9
Dividend Yield	2.24%	1.42%	3.12%	3.12%
EV/EBITDA (x)	12.50	12.79	11.60	9.86
P/FCFE (x)	38.23	14.15	19.82	15.39
Net Gearing	(47.4%)	(46.1%)	(29.4%)	(44.2%)
P/BV (x)	6.94	5.74	5.07	4.38
ROE	31.4%	28.2%	29.2%	29.2%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Total Net Revenues	86,131	101,209	101,894	110,903
Gross Profit	14,588	15,561	16,303	18,022
Operating EBITDA	7,274	7,028	7,948	8,928
Depreciation And Amortisation	(1,319)	(1,304)	(1,384)	(1,463)
Operating EBIT	5,955	5,724	6,564	7,465
Financial Income/(Expense)	405	125	531	658
Pretax Income/(Loss) from Assoc.
Non-Operating Income/(Expense)
Profit Before Tax (pre-EI)	6,360	5,849	7,095	8,124
Exceptional Items	(1,747)
Pre-tax Profit	4,613	5,849	7,095	8,124
Taxation	(1,529)	(1,463)	(1,774)	(2,031)
Exceptional Income - post-tax
Profit After Tax	3,085	4,386	5,321	6,093
Minority Interests
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax
Net Profit	3,085	4,386	5,321	6,093
Recurring Net Profit	4,253	4,386	5,321	6,093
Fully Diluted Recurring Net Profit	4,253	4,386	5,321	6,093

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
EBITDA	7,274	7,028	7,948	8,928
Cash Flow from Invt. & Assoc.
Change In Working Capital	(2,094)	2,296	(711)	(27)
(Incr)/Decr in Total Provisions
Other Non-Cash (Income)/Expense	1,098
Other Operating Cashflow
Net Interest (Paid)/Received	(850)	(703)	(284)	(229)
Tax Paid	(2,623)	(1,463)	(1,774)	(2,031)
Cashflow From Operations	2,805	7,159	5,180	6,641
Capex	(254)	(250)	(241)	(280)
Disposals Of FAs/subsidiaries
Acq. Of Subsidiaries/investments
Other Investing Cashflow	(289)	(4,318)	(3,953)	887
Cash Flow From Investing	(543)	(4,568)	(4,194)	607
Debt Raised/(repaid)
Proceeds From Issue Of Shares
Shares Repurchased
Dividends Paid	(2,189)	(1,389)	(3,056)	(3,056)
Preferred Dividends
Other Financing Cashflow	4,487	(1,774)	(284)	(229)
Cash Flow From Financing	2,298	(3,163)	(3,340)	(3,285)
Total Cash Generated	4,560	(572)	(2,354)	3,963
Free Cashflow To Equity	2,552	6,909	4,939	6,361
Free Cashflow To Firm	3,112	3,293	1,269	7,477

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Total Cash And Equivalents	10,971	10,087	6,945	11,137
Total Debtors	16,051	16,801	17,118	18,632
Inventories
Total Other Current Assets	3,734	3,734	3,734	3,734
Total Current Assets	30,756	30,622	27,797	33,503
Fixed Assets	5,575	4,521	3,379	2,196
Total Investments	512	512	512	512
Intangible Assets	11,135	11,135	11,135	11,135
Total Other Non-Current Assets	3,513	3,513	3,513	3,513
Total Non-current Assets	20,736	19,681	18,539	17,356
Short-term Debt
Current Portion of Long-Term Debt
Total Creditors	14,160	17,205	16,813	18,299
Other Current Liabilities	16,773	11,628	6,752	6,752
Total Current Liabilities	30,933	28,833	23,564	25,051
Total Long-term Debt	4,310	2,225	1,260	1,260
Hybrid Debt - Debt Component
Total Other Non-Current Liabilities	2,185	2,185	2,185	2,185
Total Non-current Liabilities	6,496	4,410	3,446	3,446
Total Provisions
Total Liabilities	37,428	33,243	27,010	28,497
Shareholders Equity	14,063	17,060	19,326	22,363
Minority Interests
Total Equity	14,063	17,060	19,326	22,363

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Revenue Growth	15.6%	17.5%	0.7%	8.8%
Operating EBITDA Growth	20.4%	(3.4%)	13.1%	12.3%
Operating EBITDA Margin	8.4%	6.9%	7.8%	8.0%
Net Cash Per Share (Rs)	24.00	28.23	20.41	35.46
BVPS (Rs)	50.68	61.26	69.39	80.30
Gross Interest Cover	7.00	8.15	23.13	32.63
Effective Tax Rate	33.1%	25.0%	25.0%	25.0%
Net Dividend Payout Ratio	45.3%	31.7%	57.4%	50.2%
Accounts Receivables Days	60.20	59.24	60.75	58.83
Inventory Days
Accounts Payables Days	69.15	66.83	72.53	68.99
ROIC (%)	37.6%	47.3%	45.3%	36.6%
ROCE (%)	26.3%	22.8%	24.7%	25.3%
Return On Average Assets	9.5%	8.4%	10.2%	11.5%

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

(91) 22 4161 1544 vikas.swami@incredresearch.com

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Market Data

Source: Bloomberg