Sonata Software drops as Q1 PAT slides 4% QoQ to Rs 106 cr

Revenue from operations grew by 15.32% quarter on quarter (QoQ) to Rs 2527.43 crore in Q1 FY25.

On year on year (YoY) basis, the IT firm’s net profit fell 12.06% while revenue jumped 25.4% in the June quarter.

Profit before tax (PBT) was at Rs 141.74 crore in Q1 FY25, registering a decline of 1.28% QoQ and 8.18% YoY.

EBITDA in Q1 FY25 stood at Rs 176.2 crore, up 22.28% QoQ and down 1.12% YoY.

During the quarter, net cash and equivalents was at approximately Rs 122.9 crore (net of borrowings).

In dollar terms, the company’s revenue stood at $82.7 million in Q1 FY25, up 1.22% QoQ and 5.39% YoY. The firm said that 14 new customer added during the quarter and its pipeline continues to be healthy with multiple modernization deals both from existing and new customers.

Samir Dhir, MD & CEO of the company said, “In Q1 25, our international business delivered 1.3% QoQ growth. We won three large deals during the quarter, including a healthcare deal. Our “responsible first” differentiated Harmoni.AI offering is enabling growth for Sonata resulting in new logo wins within the quarter. We remain optimistic about our long-term vision and growth prospects.”

Sujit Mohanty, MD & CEO of Sonata Information Technology said, “We continue to make progress and renewed multiple existing client contracts with enhanced contract values, despite industry head winds in ITeS sector. Our consistent focus on SI business is enabling us to deliver better Gross Contribution YoY.”

Sonata Software provides IT consulting, product engineering services, application development, application management, managed testing, business intelligence, infrastructure management, packaged applications, and travel solutions. The company derives most of its services revenue from overseas, with the US and Europe accounting for major shares of revenues.