Info-tech

Sonata Software reports 93 per cent QoQ growth in revenue

BL Bengaluru Bureau | Updated on: Jan 17, 2022
3d business graph shows  financial growth

3d business graph shows financial growth | Photo Credit: bluebay2014

Year on Year revenue grew by 33 per cent

Sonata Software, the mid-size IT service provider, has reported a 93 per cent quarter-on-quarter(QoQ) sequential growth in revenue to ₹1,858 crore for the quarter that ended in December 2021.

Further, on a year-on-year(YoY) basis the revenue grew by 33 per cent. The consolidated net profit for the quarter jumped to ₹97.6 crore, an 82 per cent increase YoY. On a sequential basis, it spiked 7 per cent QoQ. The earnings before interest, taxes, depreciation and amortization (EBITDA) rose by 8 per cent sequentially to ₹146.9 crore. On a year-on-year(YoY) basis the EBITDA grew by 29 per cent.

Domestic business revenue spiked by 142 per cent QoQ at ₹ 1,464.2 crores. The company said the revenue was driven by multi-year cloud-based annuity deals. 78 per cent of revenue from cloud-based deals. 83 per cent of gross margin from customers with turnover (customer’s revenue) more than 1,000 Crores and more than 80 per cent of gross margin was earned from repetitive customers with more the five years of association

Srikar Reddy, Managing Director and CEO of Sonata Software said, “The results are an affirmation that we continue to execute well on our goal of being a strategic partner for our clients in building world-class digital enterprises through our unique ‘platformation’ methodology. The company sees a continued uptick in the demand situation for digital services with growth in both existing accounts and in our new deal pipeline.”

Further, Reddy noted that developing competencies in digital services like platform engineering, cloud transformation, data analytics and Microsoft digital platform and aligning them to platformation has helped the company to execute enterprise-class digital engagements.

“In view of super high demand for digital talent, we continue to execute on a comprehensive talent plan, comprising a range of initiatives on improving employee engagement and retention, creating capacity in advance, more focus on training and development, and expanding our delivery centers with nearshore delivery centers for the US and Europe. Our India business has continued to show robust growth with the shift to cloud and digital infrastructure,” he added. Going forward, the company will continue to invest in talent acquisition, IP creation, competency, capability development and sales and marketing.

Published on January 17, 2022
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