Sonata software report 25% drop in Q1 net profit

Sonata Software has reported a net profit of ₹49.92 crore for the June-ended quarter, a 25.5 per cent decline when compared to ₹67.05 crore posted the same period last year

On a sequential basis, net profits were down by 19.2 per cent as compared to ₹61.79 crore posted in the March-ended quarter.

The reason for the dip stated was Covid-19 related impact. Consolidated net revenue for Q1FY21 came in at ₹952.44 crore, an 8.9 per cent increase, when compared to ₹874.63 crore posted in the year-ago period. On a sequential basis, this was an increase of 2.56 per cent from ₹928.68 crore in Q4FY20.

Jagannathan Chakravarthi, CFO of Sonata Software said that the company is seeing better traction amongst clients, which is reflected in the revenues, even as certain sectors such as travel continue to be under stress. "Second half of this fiscal will be better as more customers are looking to digitalise their business processes," Chakravarthi added.

EBITDA was at ₹78.08 crore in Q1FY21, a dip of 5.96 per cent sequentially. For Q4FY20, it had posted EBITDA of ₹83.03 crore. EBITDA margin as of Q1FY21 was at 8.2 per cent, also a decline of 0.74 per cent on a sequential basis. Shares of Sonata closed at ₹298.8, up marginally by 0.76 per cent when compared to previous day's close.