Sonata Software Limited – International Services Revenue grew by 4.8% QoQ in USD terms. Consolidated Q3 FY 22-23 PAT at Rs 117.6 Crores, QoQ growth of 4.4%

Bengaluru, January 24, 2023 : Sonata Software, a leading Modernization and Digital Engineering Company, today reported its unaudited financial results for its 3^rd quarter ended and nine months ended 31^st December 2022.

Speaking on the results, Samir Dhir, CEO of Sonata Software Ltd. 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. Sonata was accorded “Microsoft Cloud Solution Provider” status in recognition of our engineering expertise on Cloud and Data modernisation. We received the coveted Golden Peacock Award for excellence in Corporate Governance.”

Speaking on the results Mr. Sujit Mohanty, MD & CEO of Sonata Information Technology Limited 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.”

Performance Highlights for the quarter:                                                                                              

• Consolidated:
• Revenues at Rs 2,260.8 Crores, growth of 51% QoQ
• EBITDA at Rs 8 Crores, growth of 4% QoQ
• Net Profit (PAT) at Rs6 Crores, growth of 4% QoQ
• Cash and equivalents (net of borrowings) approximately Rs 585 Crores
• Consolidated DSO at 42 days

• International IT Services:
• Revenues at Rs 6 crores; growth of 6.3% QoQ
• Revenue in USD at 60.5 million, QoQ revenue growth of 4.8% in USD terms and YoY growth of 23.9%
• EBITDA at Rs 2 Crores: growth of 3.2% QoQ
• Net profit (PAT) at Rs3 Crores, QoQ growth of 3.4%
• Addition of 20 new customers during the quarter.
• Sonata’s Modernization Services helps in creating digital businesses with connected ecosystem to realize business agility, scalability, and improved efficiencies with our unique Platformation^TM
• We have added new clients across different industries – Retail, BFSI, Mfg., and Travel. We will continue to focus on Enterprise clients to accelerate our growth across the markets we operate.

• Domestic Products & Services:
• Revenues at Rs 1,773.6 crores: growth of 70.5% QoQ;
• Domestic business measured on absolute Gross Contribution. Gross margin for the Quarter at Rs7 Crores vs Rs 53.6 Crores, growth of 5.8% QoQ.
• Domestic business major revenue contribution from multi year annuity enterprise sale.
• EBITDA at Rs 7 Crores: growth of 9.7% QoQ;
• Net profit (PAT) at Rs 3 crores QoQ growth of 6.5%