Sonata Software profit jumps 13 per cent to Rs 40 crore
Chirag Gothi / 09 Feb 2016
Sonata Software posted Rs 40.2 crore consolidated net profit in the Oct-Dec period, up 13 per cent from Rs 35.7 crore made in the previous year backed by strong domestic business. Sequentially, the profits were up by 2.3 per cent. Revenue grew 11.8 per cent Y-o-Y to Rs 522 crore, while quarterly basis, the growth was 31 per cent.
Sonata Software posted Rs 40.2 crore consolidated net profit in the Oct-Dec period, up 13 per cent from Rs 35.7 crore made in the previous year backed by strong domestic business. Sequentially, the profits were up by 2.3 per cent. Revenue grew 11.8 per cent Y-o-Y to Rs 522 crore, while quarterly basis, the growth was 31 per cent.
During third quarter, its earnings before interest, tax, depreciation and amortisation (EBITDA) improved 21 per cent Y-o-Y Rs 62.7 crore. Comparing with previous quarter results, EBITDA rose by 8.4 per cent. Its EBITDA margin expanded by 98 basis points to 12.01 per cent as compared to corresponding quarter of the last year.
As digital services has emerged as the new revenue earning platform for information technology (IT) outsourcing companies, Sonata also said it will continue to invest in these areas.
Segment-wise company's revenue from India increased by 9 per cent in Q3FY16 compared to the same quarter of the last year and as a result its contribution to the total revenue reached to 65.8 per cent. Remaining 34.2 per cent revenue coming from international IT services, which also increased by 16 percent against the same quarter of the last year. However, at bottom-line, the domestic business grew by 26 per cent to Rs 8.6 crore whereas international IT services grew by 9 per cent to Rs 31.6 crore on Y-o-Y basis.
For the first nine months of FY16, the company’s net profit grew by 19 per cent to Rs 117.8 crore as against Rs 98.9 crore in the same period last fiscal. Total income grew by 9 per cent to Rs 1,399.6 crore as against 1,290 crore in the same period of the previous year. Operating income grew by 26 per cent to Rs 177.2 crore along with EBITDA margin, which expanded by 179 bps to 12.66 per cent.
During the quarter the company has acquired 100 per cent of the equity stake in the Interactive Business Information System Inc. (IBISI), a Georgia company which has strategic partnership with Microsoft for the Dynamics solution and delivers world-class supply chain solutions, including its proprietary Advanced Supply Chain Software solution. The consideration includes an upfront payment of USD 8.6 million and earn out of USD 5.4 million payable over the next two calendar years.
On Tuesday, the stock closed at Rs 161, up by 2.58 per cent.
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