Sonata Software Q1 net rises 19% to Rs 38 cr

Revenue grew 15% from same period year ago to Rs 479 cr

Sonata Software posted Rs 38.20 crore net profit in the April-June period, up 19 per cent from Rs 32 crore made in the year ago period backed by strong domestic business. Sequentially, the profits were up by 10 per cent.

Revenue grew 15 per cent from same period year ago to Rs 479.16 crore, while quarterly basis, the growth was 22 per cent.

During the three-month period, its earnings before interest, tax, depreciation and amortisation (EBITDA) improved 26 per cent year-on-year Rs 55.73 crore. Comparing with previous quarter results, EBITDA rose by 11 per cent.

As digital services has emerged as the new revenue earning platform for information technology (IT) outsourcing companies, Sonata also said it will continue to invest in these areas.

"Our sustained commitment in new digital transformation technologies and focus on improving business performance of our customers continue to help us in differentiating ourselves in our key verticals. We will continue to invest significantly in platforms as we become an intellectual property-led services company," said Srikar Reddy, managing director and Chief Executive Officer (CEO) of the Company.

The company today announced acquisition of US-based mobile enterprise solution provider Halosys for $2 million (Rs 12.74 crore). Additionally, Sonata has to pay $3 million earn out payable for a period of three years, it said in an exchange filing.

Halosys has a single unified enterprise mobile enablement platform that enables businesses build, secure, manage and deploy an enterprise wide mobile applications portfolio.