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Sonata Software records turnaround Q4 numbers

08-May-24 13:08 Hrs IST

Revenue from operations fell 12.10% to Rs 2,191.61 crore in Q4 FY24 as compared with Rs 2,493.35 crore recorded in Q3 FY24.

As compared with Q4 FY23, the company?s consolidated net profit shed 3% from Rs 113.77 crore while revenue jumped 14.53% from Rs 1,913.50 crore.

On segmental basis, revenue from domestic products & services stood at Rs 1,514.5 crore (down 16% QoQ but up 9% YoY) and international IT services revenue stood at Rs 679 crore (down 3% QoQ but up 27% YoY).

The company reported a profit before tax (PBT) of Rs 143.58 crore in fourth quarter of FY24, as compared to a pre-tax loss of Rs 3.10 crore in previous quarter and PBT of Rs 150.48 crore in Q4 FY23.

For Q4, EBITDA stood at Rs 198.8 crore, registering de-growth of 12% sequentially while an increase of 13% on YoY basis.

During the quarter, net cash and equivalents approximately stood at Rs 441.3 crore (net of borrowings).

In dollar terms, the company?s revenue stood at $81.7 million in Q4 FY24, down 2.38% QoQ and up 24.14% YoY. In Q4 FY24, 18 new customers added.

For FY24, the company?s consolidated net profit fell 31.73% to Rs 308.50 crore over FY23. Revenue from operations jumped 15.63% YoY to Rs 8,613.06 crore posted in FY24.

Samir Dhir, MD & CEO of the company said, ?We remain optimistic about our long-term vision and growth prospects. In FY24, our international business delivered industry leading 34.3% growth YoY. During the Q4, large deals decisioning delays & associated costs resulted in sequential degrowth both in our international revenue USD terms by 2.4% QoQ, and consolidated PAT of 14.1% QoQ. Despite Q4 and shortterm headwinds, as we reflect on the year, we have taken significant steps towards our long-term goals.?

Sujit Mohanty, MD & CEO of Sonata Information Technology, said, ?Our PAT de-grew by 6% QoQ due to seasonality; however, Annual PAT grew 16% over the previous year. We had fruitful engagements with our existing customers through targeted GTMs which helped us expand our business from our existing customer base.

Meanwhile, the company?s board has recommended a final dividend of Rs 4.40 per share for the financial year ended 31st March 2024, subject to the approval of shareholders.

Further, the board of directors approved merger of Encore I.T. Services Solutions (a wholly owned subsidiary of the company) with the company. Also, accorded in-principle approval for merger of Encore Software Services Inc., USA (a wholly owned subsidiary of Sonata Software North America Inc., USA) with Sonata Software North America Inc., USA (wholly owned subsidiary of the company).

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.

Shares of Sonata Software tumbled 13.61% to Rs 550.65 on the BSE.