Sonata Software skids after Q4 PAT drops 19% QoQ

Sonata Software lost 4.24% to Rs 198.65 after consolidated net profit dropped 18.54% to Rs 61.79 crore on a 25% decline in revenue from operations to Rs 928.68 crore in Q4 March 2020 over Q3 December 2019.

Consolidated EBITDA fell 19% to Rs 95.20 crore in Q4 March 2020 from Rs 118.30 crore in Q3 December 2019. The company has made provision for PF investment (IL&FS) of Rs 12.70 crore during the quarter and Rs 23.20 crore for the year. The result was declared after market hours yesterday, 11 May 2020.

Consolidated profit before tax tumbled 21.36% to Rs 82.43 crore in Q4 March 2020 as against Rs 104.83 crore in Q3 December 2019. Current tax expenses fell 21.06% to Rs 21.81 crore in Q4 March 2020 as compared to Rs 27.63 crore in Q3 December 2019.

The revenues from international IT services segment fell 1% to Rs 325.50 crore in Q4 March 2020 as compared to Rs 329.80 crore in Q3 December 2019. The domestic-products & services segment revenue dropped 33% to Rs 607 crore in Q4 March 2020 over Rs 912 crore in Q3 December 2019. The International IT services business added six new customers.

Commenting on the Q4 performance, Srikar Reddy, the managing director (MD) & chief executive officer (CEO) of Sonata Software, said, "These last few weeks have been unprecedented in the speed of evolution of events and the impact it has had on businesses globally. We have been able to move 100% of our work force to work remotely/ from home globally and been able to create and implement processes to deliver different kinds of services to our clients extremely effectively without any disruption and in some cases with more productivity. While we will be affected in the short term due to the impact of the COVID-19 we believe our long term business model and strategy and the investments we have made and continue to make in IP creation will stand us in good stead to take advantage of the opportunities that will definitely emerge when the crises ends."

Sonata Software is a global IT Services company that provides services in business intelligence and analytics, application development management, mobility, cloud, social media, testing, enterprise services, and infrastructure management services.

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