Sonata Software net up 18% in Q3

Bengaluru, Jan 24 (IANS) Leading IT services and technology solutions firm Sonata Software on Friday reported Rs 76 crore consolidated net profit for the third quarter of 2019-20, registering 18 per cent annual growth from Rs 64 crore in the same period last year

In a regulatory filing on the BSE, the city-based software firm said consolidated revenue for the quarter under review (Q3) grew 47 per cent annually to Rs 1,237 crore from Rs 844 crore in the like period a year ago.

“Though sequentially net profit grew 5 per cent to Rs 76 crore from Rs 72 crore, revenue zoomed a whopping 76 per cent to Rs 1,237 crore from Rs 703 crore a quarter ago,” it said in the filing.

Earnings before interest, tax, depreciation and ammortisation (Ebitda) increased 24 per cent annually to Rs 118 crore from Rs 95 crore a year ago and 6 per cent sequentially from Rs 111 crore a quarter ago.

“The growth in profit and revenue have been due to our focus on being a digital transformation partner through our proprietary Platformation methodology and strategy of IP-led differentiation,” said Sonata Chief Executive Srikar Reddy in a statement.

The company also benefited from business growth in diverse verticals such as retail, distribution, consumer packaged goods, software vendors, commodity and service industries and investment in new technologies, he said

“We believe Platformation is mainstream for us, as we see increased traction in the market with addition of new marquee clients and strong pipeline,” Reddy added.

The large increase (76 per cent) in sequential revenue is owing to a large transaction in the domestic products and services business.