Sonata Software Q1 PAT up 5% QoQ to Rs 91 crore

Sonata Software reported 5% rise in consolidated net profit to Rs 91.2 crore on a 24% drop in revenues to Rs 963.2 crore in Q2 FY22 over Q1 FY22.

The international IT services revenues of the company was Rs 360.8 crore (up 11% QoQ) and revenue from domestic product and services was Rs 605.5 crore (down 36% QoQ) in the second quarter.

EBITDA rose by 6% to Rs 136.6 crore in Q2 FY22 from Rs 129.1 crore in Q1 FY22.

As compared with Q2 FY21, the company's net profit and revenue in Q2 FY22 have risen by 59% and 20%, respectively.

Srikar Reddy, Managing Director & CEO of the Company said, Our overall strategy of building digital enterprises by creating platforms through our unique Platformation methodology has continued to drive our growth and differentiate ourselves.

We see the demand situation across the board for digital services being very promising with growth in existing accounts and new deal pipeline. In view of super high demand for talent we are executing on a comprehensive talent plan for digital skills, including a range of initiatives on improving employee engagement and retention, creating capacity in advance and expanding our delivery centers with near shore delivery centers for US and Europe.

Our India business has continued to show robust growth with shift to cloud and digital infrastructure.

The company announced its September quarter results just before market closing hours yesterday.

Shares of Sonata Software slumped 4.84% to currently trade at Rs 920 on the BSE.

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. The company's domestic subsidiary Sonata Information Technology primarily distributes software products and is focused on the Indian market.

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