Sonata Software, a global IT services and technology solutions provider has yet again shown its competence in the world of information technology witnessing international services revenue growth of 4.6% QoQ (40% YoY) in USD, while exhibiting Domestic Gross Contribution growth of 16.5% YoY in INR.  With this, the board has approved 1:1 bonus issue and interim dividend of ₹ 7 per share.

"We are proud and excited to deliver yet another quarter of Industry-leading growth, despite the macro geo-political issues, economic challenges, and slowdown in tech-spending. Our International services Revenue in USD terms grew 4.6% QoQ. Consolidated PAT for Q2'24 grew 3.4% QoQ. We won our first multi-year AI-enabled business transformation large deal – powered by Sonata's Harmoni.AI," highlighted Samir Dhir, MD & CEO of the Company speaking on the quarterly results.

Adding his thoughts on the quarterly results, Sujit Mohanty, MD & CEO of Sonata Information Technology Limited stated, "Our domestic products division delivered a good performance during this quarter. Our Gross Contribution grew by 1% QoQ and 16.5 % YoY. Our Q2 PAT grew by 19% YoY. We also successfully renewed all our large multiyear software contracts with our key customers. Going forward we will continue focusing on our Multi-Cloud Management offerings and System Integration business to drive future growth."

Sonata’s consolidated PAT for Q2 FY 23-24 grew by 3% QoQ. The company has reported its unaudited financial results for its 2nd quarter that ended on 30th September 2023.

Below are the Key Performance Highlights for the quarter:

• Consolidated:  

  • Revenues at ₹ 1,912.6 crores; YoY growth of 28%

  • EBITDA at ₹ 220.5 crores; YoY growth of 33%

  • PAT at ₹ 124.2 crores; YoY growth of 10%

  • Net Cash and equivalents of approximately ₹ 267 Crores (net of borrowings).

  • DSO improved to 40 days (Q1'24: 41 days).

• International IT Services:  

  • Revenues at ₹ 670.0 crores; YoY growth of 46%

  • Revenue in USD at 80.9 Million, QoQ revenue growth of 4.6% & YoY 40.0% in USD terms,

  • EBITDA at ₹ 165.0 crores; YoY growth of 38%

  • PAT at ₹ 83.7 crores; YoY growth of 7%

  • DSO improved to 45 days (Q1'24: 46 days)

  • Four New customer added during the quarter

  • Overall strategy of delivering outcome-based Modernization services using our Domain-Led and technology-based Modernization anchored by GTMs executed through PlatformationTM.

  • Strong growth from digital based competencies like Managed cloud services and Digital PlatformationTM Services (Microsoft & Open source) and focused verticals like TMT, Healthcare & Life Sciences, Manufacturing, Retail / CPG/ TTH, BFSI and Emerging.

  • Our pipeline continues to be healthy and strong through multiple new digital wins from existing and new customers.

• Domestic Products & Services:  

  • Revenues at ₹ 1,244.0 crores; YoY growth of 20%

  • Gross contribution at ₹ 62.4 Crs grew by 16.5% YoY.

  • EBITDA at ₹ 56.4 crores; YoY growth of 20%

  • PAT at ₹ 40.5 crores; YoY growth of 19%

  • DSO improved to 35 days (Q1'24: 36 days)

About Sonata Software

Accelerating businesses with superior technology deliverability prowess, Sonata Software has been a leading Modernization Engineering company, powered by its unique Platformation™ framework. This framework offers a sustained value to its niche clients by tying a strong knot between industry expertise, platform technology excellence, design innovation and strategic engagement models.

As part of modernization programs, the company has been successfully partnering with Fortune 500 clients to help them reinvent their business processes. Sonata has been bridging the much needed gap in this promising phase to align business enablement sessions, consulting, and business processes with best-in-class industry-specific practices.

Furthermore, the company’s outcome-based Modernization Services include Cloud, Data, Dynamics, Managed Services, Automation and Digital Contact Center. We offer services and solutions around newer technologies like Generative AI, MS Fabric, among other modernization platforms. Sonata has spread its wings across geographies with strong global presence in strategic regions including US, UK, Europe, APAC, and ANZ. Sonata has been a trusted partner of world leading companies in TMT, Retail & CPG. Manufacturing, BFSI and HLS space. Its partner ecosystem boasts of strong relationships with Microsoft, AWS, Salesforce, Snowflake, Google, and Industry partners. These partnerships have been critical to the value Sonata has time after time created for its niche clients.