Sonata Software Reports Q3 Loss of Rs 46 Crore Despite 30.4% Rise in Revenue

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Sonata Software faces a Q3 setback with a Rs 46 crore loss despite a robust 30.4% rise in revenue. Market response is tepid as the IT stock dips 1.11% on BSE.

New Delhi, February 03, 2024: In a mixed financial report, Sonata Software Ltd announced a loss of Rs 46.2 crore for the December 2023 quarter, a significant downturn from the Rs 124.2 crore profit reported in the preceding quarter. However, the company reported a robust 30.4% increase in revenue, reaching Rs 2,493.3 crore compared to Rs 1,912.6 crore in the previous quarter.

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Despite the positive revenue growth, the market didn’t respond favorably, as the IT stock ended 1.11% lower at Rs 759.20 on the BSE. The market cap of the firm also experienced a dip, falling to Rs 21,289.85 crore.

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Earnings before interest and tax (EBIT) showed a 5.9% surge to Rs 174 crore in the last quarter, up from Rs 164.3 crore in the September 2023 quarter. However, the profit before tax saw a notable decline, recording Rs 3.1 crore in the negative, compared to a Rs 166.51 crore profit in the preceding quarter. The EBITDA rose to Rs 227.2 crore in the last quarter, a modest increase from Rs 220.5 crore in the September 2023 quarter.

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Earnings per share (EPS) for Q3 came in at Rs 1.66 in the negative, a contrast to the Rs 4.48 reported in the September 2023 quarter.

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In an investor presentation, the company highlighted its success in securing 13 large deals on a Year-to-Date (YTD) basis. Additionally, 49 large deals were under pursuit, with 45% of the large deals pipeline involving Fortune 500 clients.

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Sujit Mohanty, MD & CEO of Sonata Information Technology Limited, acknowledged the challenging quarter but expressed optimism: “We had one of our best quarter’s performances delivered in our Domestic Business during the quarter. Our Gross Contribution grew by 14.2% QoQ and 25.8% YoY. Our Q3 PAT grew by 17.4% YoY. We had fruitful engagements with our existing customers through targeted GTMs which helped us expand our business from our existing customer base.”

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Sonata Software, a leading engineering company, utilizes its unique Platformation framework to deliver sustained value to customers through a combination of industry expertise, platform technology excellence, design innovation, and strategic engagement models.

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