Sonata Software garners consolidated Q2 PAT of Rs91.2cr; declares dividend of Rs8 per share

The company’s net profit jumped 59.39% to Rs91.17cr in the quarter ended September 2021 as against Rs57.20cr during the previous quarter ended September 2020.

Oct 20, 2021 11:10 IST India Infoline News Service

Sonata Software
Sonata Software, a global IT Services and Technology Solutions Company reported its unaudited financial results for its 2nd quarter and six months ended 30th September 2021.

The company’s net profit jumped 59.39% to Rs91.17cr in the quarter ended September 2021 as against Rs57.20cr during the previous quarter ended September 2020.

The sales of the company increased 19.83% to Rs963.18cr in the quarter ended September 2021 as against Rs803.77cr during the previous quarter ended September 2020.

The stock is currently trading at Rs932.35 down by Rs34.45 or 3.56% from its previous closing of Rs966.80 on the BSE.

Speaking on the results 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 continue to invest in creating a stronger organization with investments, in creating world class competencies aligned to Platformation. World class competency development focus has been on digital services like platform engineering, cloud transformation, data analytics and Microsoft digital platform.”

“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 new acquisitions Encore and GBW show great promise for the future. With continued clear visibility and business opportunity, we stay focused now on investing for long term growth, in talent acquisition and transformation, IP, competency development and sales and marketing,” Srikar Reddy added.
Performance Highlights for the quarter:                                                                                                                           
  •  Consolidated:
Ø  Revenues at Rs 963.2 crores; YoY growth of 20%
Ø  EBITDA at Rs 136.6 crores; YoY growth of 52%
Ø  PAT at Rs 91.2 crores; YoY growth of 59%
Ø  DSO days improved from 38 days to 35 days
Ø  Cash and equivalents of approximately Rs 703 Crores (net of borrowings).
  • International IT Services:
Ø  Revenues at Rs 360.8 crores; YoY growth of 25%
Ø  Revenue in USD at 49.4 Million, YoY revenue growth of 26.7% in USD terms
Ø  QoQ Growth across all geographies (USA 13.7%, Europe 7.3%, Rest of World 9.5%).
Ø  Strong Execution through Platformation led growth, IP led growth and Alliance led growth
Ø  Sonata’s approach to Digitizing business using Platformation
Ø  EBITDA at Rs 103.5 crores; YoY growth of 47%
Ø  PAT at Rs 67.3 crores; YoY growth of 54%
Ø  Addition of 8 new customers.
Ø  Strong cash and liquidity positions maintained. DSO is at 38 days.
Ø  Our pipeline continues to be healthy and strong through multiple new digital wins from existing and new
customers.

· Domestic Products & Services:
Ø  Revenues at Rs 605.5 crores; YoY growth of 16%
Ø  DSO days improved from 39 days to 32 days
Ø  EBITDA at Rs 33.7 crores; YoY growth of 72%
Ø  PAT at Rs 23.9 crores; YoY growth of 76%

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