Sonata Software hits the roof after strong Q4 earnings

Sonata Software hit an upper circuit limit of 20% at Rs 53.90 at 13:45 IST on BSE after consolidated net profit rose 9% to Rs 23.57 crore on 12% decline in revenues to Rs 340.71 crore in Q4 March 2014 over Q3 December 2013.

The result was announced after market hours on Monday, 26 May 2014.

Meanwhile, the BSE Sensex was down 247.42 points, or 1%, to 24,469.46.

On BSE, so far 10.43 lakh shares were traded in the counter, compared with an average volume of 1.27 lakh shares in the past one quarter.

The stock hit a low of Rs 48.50 in early trade. The stock hit a 52-week high of Rs 54 on 16 April 2014. The stock hit a 52-week low of Rs 22.25 on 31 July 2013.

The stock had underperformed the market over the past one month till 26 May 2014, falling 8.27% compared with 8.94% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 12.63% as against Sensex's 17.77% rise.

The small-cap company has an equity capital of Rs 10.52 crore. Face value per share is Re 1.

Sonata Software's earnings before interest, taxes, depreciation and amortization (EBITDA) rose 7% to Rs 35.02 crore in Q4 March 2014 over Q3 December 2013.

On a consolidated basis, net profit surged 239% to Rs 23.57 crore on 31% rise in revenues to Rs 340.71 crore in Q4 March 2014 over Q4 March 2013. EBITDA rose 126% to Rs 35.02 crore in Q4 March 2014 over Q4 March 2013.

On a consolidated basis, Sonata Software's net profit spurted 159% to Rs 77.77 crore on 19% rise in revenues to Rs 1565.97 crore in the year ended March 2014 over the year ended March 2013. EBITDA rose 97% to Rs 117.48 crore in the year ended March 2014 over the year ended March 2013.

Speaking on the results Mr. Srikar Reddy, Managing Director & CEO of the company said, "We are delighted with the progress we have made in the last financial year. The results are a reflection that our strategy of focusing on select verticals and delivering deep customer value through domain expertise and enhancing customer facing business process through digital transformation technologies like mobile, social, analytics, is bearing fruit. We believe the same razor sharp focus and working with our key technology partners will sustain our growth momentum."

Sonata Software is a global IT services company that focuses on enabling businesses win value with strategic IT initiatives.

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