Sonata Software share price tanks over 16% post Q3 results; here is what disappointed investors

The company had reported a net profit of ₹106.49 crore during the last quarter of the same fiscal year.

During the morning trade, shares of the company was trading at ₹460.7 apiece on BSE, tumbling over 16.28%.

Sonata Software’s earnings before interest, taxes, depreciation and amortization (EBITDA) fell 7.8% QoQ to ₹163.6 crore, while the company’s cash and cash equivalents stood at ₹176 crore at the end of the quarter.

The company’s revenue from international IT services stood at ₹731.7 crore during the quarter, marking a 3.4% sequential increase. In dollar terms, revenue was $87 million, growing 2.8% QoQ and 3.9% YoY. EBITDA for the segment declined 16.9% QoQ to ₹107.1 crore, while PAT fell 8.4% to ₹56.9 crore.

The IT services firm delivered revenue growth of 4.4% (CC) QoQ in international services and domestic business delivered gross contribution growth of 16.7% QoQ.

Speaking on the quarterly results, Mr. Samir Dhir, MD & CEO of the Company said, “During the quarter, we won two large deals, our first multi-million-dollar deal on Microsoft Fabric, and for Gen AI modernization. We remain optimistic about our long-term vision and growth prospects of Sonata.”

Headquartered in Bengaluru, Sonata has a strong global presence, including key regions US, UK, Europe, APAC, and ANZ.