Mid-sized IT firm Sonata Software reports net loss, Srikar Reddy is the new MD

BANGALORE: Mid-sized IT firm Sonata Software, which today reported net loss at Rupees 6.87 crores for the 3rd quarter ending 31st December, 2011 has appointed Srikar Reddy as the new Managing Director.

Reddy, who joined Sonata in 1986, will replace Sanjay Viswanathan who had taken over as Sonata's MD in September last year. A release from the Bangalore based firm says the changes were "pursuant to the resignation of Viswanathan as the current CEO and Managing Director".

Sonata's profits have been languishing for a few quarters now. While the company's December quarter revenues rose by 36 percent at Rupees 526.25 crore, from Rupees 384.92 crore in the previous quarter, Sonata reported a consolidated net loss at Rupees 6.87 crore compared to Rupees 9.08 crore in the previous quarter, ending 30 September, 2011.

Last year, amid speculation that promoters wanted to sell their stake in the company, Sonata's board had replaced company veteran B Ramaswamy and brought in Mr Viswanathan as the new head.

This had led to speculations that Viswanathan director was brought in to drive up valuations of the company before it is sold to bidders. Viswanathan has worked with companies like GE, Infosys and 3M and claims to have a 100 % client win record.

Nearly 43 % of Sonata is held between the promoters including Bhupati Investments and the Raheja family. In 2010, promoters of the mid sized IT firm were said to be in talks with buyers for a potential stake sale.

Sonata's stocks on Tuesday ended at Rupees 23.45, down by 2.70 percent on BSE.