Sonata Software stock plunges 15% on disappointing Q4FY24 results
Upstox
2 min read • Updated: May 8, 2024, 12:53 PM
Summary
Sonata Software, an IT firm, saw its shares plummet by nearly 15% after reporting disappointing Q4 FY24 results. The company's consolidated revenue dropped by 12% sequentially to ₹2,191.6 crore, while profit after tax declined by 14% compared to the previous quarter.
Shares of IT firm Sonata Software plunged nearly 15% in the opening trade on May 8 (Wednesday) after the company reported weak set of numbers for the fourth quarter ended March 2024 (Q4 FY24).
The Sonata Software stock slid as much as 14.6% on Wednesday to hit an intraday low of ₹545.05 on the National Stock Exchange of India (NSE). Notably, the stock has corrected 28% in the past one month itself.
On Tuesday, Sonata Software announced that its consolidated revenue during Q4 FY24 fell 12% sequentially to ₹2,191.6 crore compared with ₹2,493.4 crore in Q3 FY24. Revenue, however, rose 15% when compared with ₹1,913.5 crore in the year-ago quarter.
Consolidated profit after tax (before exceptional items) declined 14% quarter-on-quarter to ₹110.4 crore in the March quarter compared with ₹128.5 crore in the December 2023 quarter, net profit declined 3% YoY from ₹113.8 crore in Q4 FY23.
The company’s operating profit, or EBITDA (earnings before interest, tax, depreciation and amortisation) was down 12% sequentially to ₹198.8 crore, but it was 13% higher compared with the year-ago quarter.
For the full FY24, Sonata Software’s revenue jumped 16% to ₹8,613.1 crore, while consolidated profit rose 7% to ₹483.2 crore compared with FY23.
Sonata Software’s MD and CEO Samir Dhir said, “During Q4, large deals decision delays and associated costs resulted in sequential degrowth. Despite Q4 and short-term headwinds, as we reflect on the year, we have taken significant steps towards our long-term goals.”
The company also recommended a final dividend of ₹4.40 per equity share of face value of ₹1 each for 2023-24.
Besides that, Sonata Software also approved the merger of its wholly-owned subsidiary Encore IT Services Solutions Pvt Ltd with itself for operational efficiency and synergy benefits.