Sonata Software reports PAT of Rs 118 cr in Q3 FY23

The IT company posted 4.39% rise in consolidated net profit to Rs 117.66 crore on a 51.12% jump in revenue from operations to Rs 2,260.78 crore in Q3 FY23 over Q2 FY23.

As compared to Q3 FY22, the IT firm's net profit increased by 20.47% while revenue from operations advanced 21.68%.

Consolidated profit before tax rose by 4.73% quarter on quarter and 19.87% year on year to Rs 155.34 crore in Q3 FY23. Consolidated EBITDA grew by 4% quarter on quarter and 18% year on year to Rs 172.8 crore in Q3 FY23.

In Q3 FY23, the company reported revenue of $60.5 million, a sequential growth of 4.8% and a year on year growth of 23.9%.

Cash and cash equivalents (net of borrowings) stood at Rs 585 crore as on 31 December 2022.

Speaking on the results, Samir Dhir, CEO of the company said, "We are excited to report another quarter of strong financial performance, with industry leading QoQ revenue growth of 6.3% in INR terms (4.8% in USD terms) in the international business, and strong ROCE of 42% in the Domestic business. Our modernisation driven solutions enabled four large deal wins with enterprise clients in the quarter."

Sujit Mohanty, MD & CEO of Sonata Information Technology said, "Our domestic products and services division had an outstanding quarter significant increase in gross contribution. We are seeing the positive results of our focus on multi-year annuity enterprise sales and will continue to prioritize enterprise clients in order to drive further growth."

Further, the company's board has approved the appointment of Samir Dhir, the current whole-time director & CEO, as managing director & CEO of the company effective from 14 February 2023. The board has also appointed Srikar Reddy, the current managing director and a member of the board of directors, as executive vice chairman effective from the same date as well until 3 April 2026.

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 scrip rose 0.26% to currently trade at Rs 627.15 on the BSE.

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