Sonata Software posted consolidate revenues at Rs1,396cr, growth of 74% qoq compared to Rs803.8cr in Q2FY21 and growth of 13% on yoy basis compared to Rs1,236.9cr in Q3FY20.
The company’s net profit at Rs53.8cr showed sequential decline of 6% compared to Rs57.2cr in Q2FY21 and 29% yoy compared to Rs75.9cr in Q3FY20. EBITDA at Rs114.2cr, growth of 27% qoq from Rs89.7cr in Q2FY21 and decline of 3% tot from Rs118.3cr. Cash and equivalents (net of borrowings) approximately Rs604cr.
During the quarter provision for income tax settlement under Vivad se Vishwas Scheme(“VsVs”)is made Rs15.6cr for International IT Services (Sonata Software Limited), Rs6.2cr for Domestic Products and Services (Sonata Information Technology Limited) and Rs21.8cr for Consolidation financials. Consequently, contingent liability (based on the original demand as per order) has been reduced by Rs33.7cr for International IT Services (Sonata Software Limited), Rs15.3cr for Domestic Products and Services (Sonata Information Technology Limited) and Rs 49Crores for Consolidation financials.
International IT Services revenues stood at Rs300cr; growth of 4% qoq but decline of 9% yoy. Growth across all geographies (USA 7.1%, Europe 4.9% , Rest of World 1.4%). EBITDA stood at Rs87cr:growth of 24% qoq and decline of 5% yoy.
Net profit stood from International IT Services at Rs41.4cr , qoq decline of 5% and 28% drop yoy.
“The company added 8 new customers during the quarter. Overall strategy of creating digital enterprises by creating platform through our unique platformation methodology are yielding results,” company said.
From Domestic Products and Services, revenues stood at Rs1,099cr, growth of 110% qoq and 21% yoy.
“Domestic business revenue was driven by multiyear cloud-based annuity deals. More than 60% of revenue from cloud-based deals. Sustained growth ensured through strong customer retention, ~82% of gross margin from customers with turnover (customer’s revenue) more than 1,000 Crores and more than 60% of gross margin earned from repetitive customers with more the 5 years of association,” company said.
Domestic business measured on absolute Gross Margin. Gross margin for the Quarter at Rs38cr vs Q2FY21 Rs30cr, qoq growth of 26%. EBITDA at Rs27cr, growth of 39% qoq and 1% yoy.
Net profit (PAT) was at Rs12.4cr, qoq decline of 9% and 32% drop yoy DSO days improved from 63 days to 57 days.
“The results for the quarter reflect all round growth across different segments of the business, growth especially in the digital business resulting in highly profitable growth. This is a clear indication that our overall strategy of building digital enterprises by creating platforms through our unique ‘Platformation’ methodology is more relevant in the current context with greater reliance and investments by enterprises in digitization and automation,” Srikar Reddy, Managing Director & CEO of the Company, said.
At around 10.52 am, Sonata Software Ltd was trading at Rs404.75 per piece up Rs2.35 or 0.58% on the BSE.