Turnaround Success
FOCUS ON GLOBAL MARKETS HELPS SONATA GROW EXPONENTIALLY
Focus on global market helps Sonata grow exponentially
Indian IT services industry grew 8.7 per cent in the financial year 2016/17, the slowest in more than a decade. However, a little- known firm based in Bengaluru reported a top-line growth of 29 per cent. It was not a mere case of the revenue base being smaller although that played a role.
Sonata Software, the company in question, has been in the business for more than three decades. It was set up in 1986 and got listed in 1998. The company used to resell software in the domestic market and provided related services to its customers. But an early- mover advantage had not resulted in scale, size or significant success. Quick leadership changes at the top in 2011/12, when two chief executives departed within a year, meant most of the analysts had stopped tracking the company.
Sonata’s margins shrank, and it was making losses when a new Chief Executive and Managing Director took charge. P. Srikar Reddy, a company insider, was anointed as the next leader but by the time he had