Sonata Software: Delivers revenue growth of 4.4% $(CC)$ QoQ in International Services, Domestic Business delivers Gross Contribution growth of 16.7% QoQ

PR Newswire

BENGALURU, India, Feb. 6, 2025

BENGALURU, India, Feb. 6, 2025 /PRNewswire/ -- Sonata Software (NSE: SONATSOFTW) (BSE: 532221), a leader in Modernization Engineering, today reported its unaudited financial results for its Quarter ended December 31, 2024.

 
 
                                                                                   in Crores 
-------------------------------------------------------------------------------------------- 
Description                   For the Quarter ended                For the nine months ended 
                 ---------------------------------------------  ---------------------------- 
                 31-Dec-24  30-Sep-24   QoQ   31-Dec-23   YoY   31-Dec-24  31-Dec-23   YoY 
Revenues 
International 
 IT Services         731.7      707.9    3 %      696.8    5 %    2,127.4    2,000.6     6 % 
Domestic- 
 Products & 
 Services          2,111.1    1,461.9   44 %    1,800.3   17 %    5,422.4    4,436.0    22 % 
Consolidated       2,842.8    2,169.8   31 %    2,493.4   14 %    7,540.1    6,421.5    17 % 
---------------  ---------  ---------  -----  ---------  -----  ---------  ---------  ------ 
 
EBITDA(#) 
International 
 IT Services         107.1      128.9  -17 %      157.3  -32 %      364.8      445.7   -18 % 
Domestic- 
 Products & 
 Services             56.4       48.4   17 %       50.3   12 %      152.2      137.6    11 % 
Consolidated         163.6      177.3   -8 %      207.7  -21 %      517.1      583.3   -11 % 
---------------  ---------  ---------  -----  ---------  -----  ---------  ---------  ------ 
 
PAT after 
exceptional 
item 
International 
 IT Services          56.9       62.2   -8 %     (88.8)      -      184.2       74.9       - 
Domestic- 
 Products & 
 Services             48.1       44.3    8 %       42.6   13 %      132.8      123.3     8 % 
Consolidated         105.0      106.5   -1 %     (46.2)      -      317.1      198.1       - 
 
 
PAT before 
exceptional 
item 
International 
 IT Services          56.9       62.2   -8 %       85.9  -34 %      184.2      249.5   -26 % 
Domestic- 
 Products & 
 Services             48.1       44.3    8 %       42.6   13 %      132.8      123.3     8 % 
Consolidated         105.0      106.5   -1 %      128.5  -18 %      317.1      372.8   -15 % 
---------------  ---------  ---------  -----  ---------  -----  ---------  ---------  ------ 
(#) EBITDA (before Other Income & Fx) 
 

Speaking on the quarterly results, Mr. Samir Dhir, MD & CEO of the Company said, "In Q3'25, our International business delivered 4.4%(CC) QoQ growth and EBIDTA drop due to onetime cost items. During the quarter, we won two large deals, our first multi-million-dollar deal on Microsoft Fabric, and for Gen AI modernization. We remain optimistic about our long-term vision and growth prospects of Sonata."

Speaking on the results, Mr. Sujit Mohanty, MD & CEO of Sonata Information Technology Limited said, "We had one of our best quarter's performances delivered in our Domestic Business during the quarter. We had good wins from New corporate customers and the defence sector during this quarter and we also have renewed all the large contracts with our customers for Software and Hyperscaler business. We also increased our Security Business with our existing clients during this quarter."

Performance Highlights for the Q3'25:

   -- International IT Services: 
 
          -- Revenues for Q3'25 at 731.7 Crores; QoQ growth of 3.4%. 
 
          -- Revenue for Q3'25 in USD at 87 Mn, QoQ growth of 2.8% and YoY 
             growth of 3.9%. 
 
          -- EBITDA (Before Other Income & Fx ) for Q3'25 at 107.1 crores; QoQ 
             de-growth of 16.9%. 
 
          -- PAT for Q3'25 stood at 56.9 Crores; QoQ de-growth of 8.4%. 
 
          -- DSO at 47 days (Q2'25 45 days) 
 
          -- 11 New Customer added during the quarter. 
 
   -- Domestic Products & Services: 
 
          -- Gross contribution for Q3'25 at 81.9 Crores; QoQ growth of 16.7%. 
 
          -- EBITDA (Before Other Income and Fx) for Q3'25 at 56.4 crores; QoQ 
             growth of 16.6%. 
 
          -- PAT for Q3'25 at 48.1 Crores; QoQ growth of 8.5%. 
 
          -- DSO at 41 days (Q2'25 35 days) 
 
          -- ROCE of 48.5% in Q3'25 (Q2'25 45.2%) 
 
          -- RONW of 47.7% in Q3'25 (Q2'25 44.6%) 
 
   -- Consolidated: 
 
          -- EBITDA for Q3'25 is 163.6 Crores; QoQ de-growth of 7.8%. 
 
          -- PAT for Q3'25 stood at 105 Crores; QoQ de-growth of 1.4%. 
 
          -- Cash and cash equivalents (net) of approximately 176 Crores. 

About Sonata Software

In today's market, there is a unique duality in technology adoption. On one side, extreme focus on cost containment by clients, and on the other, deep motivation to modernize their Digital storefronts to attract more consumers and B2B customers.

As a leading Modernization Engineering company, we aim to deliver modernization-driven hypergrowth for our clients based on the deep differentiation we have created in Modernization Engineering, powered by our Lightening suite and 16-step Platformation$(TM)$ playbook. In addition, we bring agility and systems thinking to accelerate time to market for our clients.

Headquartered in Bengaluru, India, Sonata has a strong global presence, including key regions US, UK, Europe, APAC, and ANZ. We are a trusted partner of world-leading companies in TMT (Telecom, Media, and Technology), Retail & CPG, Manufacturing, BFSI (Banking, Financial Services and Insurance), and HLS (Healthcare and Lifesciences) space. Our bouquet of Modernization Engineering Services cuts across Cloud, Data, Dynamics, Contact Centers, and around newer technologies like Generative AI, MS Fabric, and other modernization platforms.

For more information, please visit https://www.sonata-software.com/

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SOURCE Sonata Software

/CONTACT: Media Contact: Vinitha Oommen vinitha.oommen@sonata-software.com, 91-9886787900

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February 06, 2025 09:23 ET (14:23 GMT)