Sonata Software Sees Mixed Profit Trends In Q1 FY25

Sonata Software has seen a mixed financial performance for the first quarter of the fiscal year 2025, including a mixed trend in its profitability. The consolidated revenues reached Rs 2,527.4 crore, a quarter-on-quarter (QoQ) growth of 15.3 per cent. 

The increase in revenue was accompanied by a rise in EBITDA to Rs 176.2 crore, representing a QoQ growth of 22. Per cent. 

Despite these gains, the company’s profit after tax (PAT) experienced a decline, standing at Rs 105.6 crore, a QoQ de-growth of 4.3 per cent. The net cash and equivalents were approximately Rs 122.9 crore after accounting for borrowings.

In the International IT Services segment, revenues saw a modest QoQ growth of 1.3 per cent, totaling Rs 687.8 crore. When measured in USD, this segment’s revenue was USD 82.7 million, a YoY growth of 6.9 per cent.

The EBITDA for this segment increased by 9.5 per cent QoQ to Rs 128.8 crore. However, PAT fell to Rs 65.1 crore, a QoQ de-growth of 7.3 per cent. The days sales outstanding (DSO) remained steady at 45 days, the same as the previous quarter. The company added 14 new customers and observed growth in verticals such as MS Sell to, HLS and BFSI. The pipeline remains strong with several modernisation deals from both existing and new clients.

The Domestic Products & Services segment reported a QoQ revenue growth of 22.1 per cent, reaching Rs 1,849.4 crore. The gross contribution for this segment grew by 5.8 per cent QoQ to Rs 68.5 crore. The EBITDA grew by 78.7 per cent QoQ to Rs 47.3 crore. PAT in this segment showed a slight QoQ growth of 0.9 per cent, amounting to Rs 40.5 crore. The DSO improved marginally to 35 days from 36 days in the previous quarter.

In a statement, Sujit Mohanty, MD & CEO of Sonata Information Technology, said, 

In a statement, Sujit Mohanty, MD & CEO of Sonata Information Technology, said, “We continue to make progress and renewed multiple existing client contracts with enhanced contract values, despite industry head winds in ITeS sector. Our consistent focus on SI business is enabling us to deliver better Gross Contribution YoY.”