Sonata Software: International Services delivered Industry leading Dollar revenue growth; up 3.5% QoQ (38.3% YoY). Domestic business delivered strong Gross contribution growth of 14.2% QoQ (25.8% YoY) in INR.
February 1, 2024, Bengaluru: Sonata Software [NSE: SONATSOFTW, BSE: 532221], a leader in Modernization Engineering, today reported its unaudited financial results for its 3rd quarter ended December 31, 2023.
in Crores
Description For the Quarter ended For the nine months ended
Revenues 31-Dec-23 30-Sep-23 QoQ 31-Dec-22 YoY 31-Dec-23 31-Dec-22 YoY
International IT Services 696.8 670.0 4% 489.6 42% 2000.6 1386.8 44%
Domestic - Products & Services 1800.3 1244.0 45% 1773.6 2% 4436.0 4156.9 7%
Consolidated 2493.4 1912.6 30% 2260.8 10% 6421.5 5535.6 16%
EBITDA
International IT Services 168.5 165.0 2% 123.2 37% 484.1 358.6 35%
Domestic - Products & Services 59.2 56.4 5% 51.7 14% 172.1 142.8 21%
Consolidated 227.2 220.5 3% 172.8 31% 654.2 498.4 31%
PAT after exception items ^
International IT Services
(88.8)
83.7 - 81.3 -
74.9
235.9 -
Domestic - Products & Services
42.6
40.5 5% 36.3 17%
123.3
102.2 21%
Consolidated
(46.2)
124,2 - 117.6 -
198.1
338.1 -
PAT before exception items ^
International IT Services 85.9 83.7 3% 81.3 6% 249.5 235.9 6%
Domestic - Products & Services 42.6 40.5 5% 36.3 17% 123.3 102.2 21%
Consolidated 128.5 124,2 3% 117.6 9% 372.8 338.1 10%
(^Sonata Software North America Inc., (SSNA) a wholly owned subsidiary of Sonata Software Limited, acquired a 100% stake in the Quant Systems Inc., (Quant) on March 10, 2023, for a purchase consideration of USD 159 mn (INR 130,348 Lakhs) (net of working capital) including cash consideration of USD 70.70 mn (INR 57,960 Lakhs) and USD 88.30 mn (INR 72,388 Lakhs) of contingent consideration payable over 2 years. The Company has re-measured the fair value of the contingent consideration payable to be USD 105.42 mn (INR 87,719 Lakhs), thereby an increase of USD 17.12 mn (INR 14,244 Lakhs). Similarly, the Company has re-measured the fair value of the contingent consideration payable with respect to an earlier acquisition, which has resulted in the change in fair value by USD 3.87 mn (INR 3,222 Lakhs). The above changes in fair value of contingent consideration payable amounting to USD 20.99 mn (INR 17,466 Lakhs) are owing to the better financial performance of the acquired entities and are recorded in the Statement of Profit and Loss. The Management has disclosed the above changes in fair value as an 'exceptional item', considering the significance of the amount and its non-recurring nature.)
Speaking on the quarterly results Mr. Samir Dhir, MD & CEO of the Company said, 'We are proud and excited to deliver yet another quarter of Industry-leading growth, despite the macro geo-political issues, economic challenges, and slowdown in tech-spending. Our International services Revenue in USD terms grew by 3.5% QoQ and Domestic Gross contribution grew by 14.2% QoQ. We are delighted to be adjudged 'Best Governed Company 2023' at ICSI national awards for excellence in corporate governance and certified as 'Most Preferred Workplace 2023-24' by Marksmen Daily.'
Speaking on the results Mr. Sujit Mohanty, MD & CEO of Sonata Information Technology Limited said, 'We had one of our best quarter's performances delivered in our Domestic Business during the quarter. Our Gross Contribution grew by 14.2 % QoQ and 25.8 % YoY. Our Q3 PAT grew by 17.4% YoY. We had fruitful engagements with our existing customers through targeted GTMs which helped us expand our business from our existing customer base.'
Performance Highlights for the quarter:
Consolidated:
? Revenues at ? 2,493.4 crores; QoQ growth of 30%
? EBITDA at ? 227.2 crores; QoQ growth of 3%
? PAT before exceptional item stood at ? 128.5 Crores; QoQ growth of 3%.
? Net Cash and equivalents of approximately ? 228 Crores (net of borrowings).
International IT Services:
? Revenues at ? 696.8 crores; QoQ growth of 4%
? Revenue in USD at 83.7 Million, QoQ revenue growth of 3.5% & YoY 38.3% in USD terms,
? EBITDA at ? 168.5 crores; QoQ growth of 2%
? PAT before exceptional items stood at ? 85.9 Crores, QoQ growth of 3%.
? DSO at 45 days (Q2'24: 45 days)
? 13 New Customers added during the quarter
? Overall strategy of delivering outcome-based Modernization services using our Domain-Led and technology-based Modernization anchored by GTMs executed through PlatformationTM.
? Strong growth from digital-based competencies like Managed cloud services and Digital PlatformationTM
Services (Microsoft & Open source) and focused verticals like TMT, Healthcare & Life Sciences,
Manufacturing, Retail / CPG/ TTH, BFSI and Emerging.
? Our pipeline continues to be healthy and strong through multiple new digital wins from existing and new
customers.
Domestic Products & Services:
? Revenues at ? 1,800.3 crores; QoQ growth of 45%
? Gross contribution at ? 71.3 Crs grew by 25.8% YoY.
? EBITDA at ? 59.2 crores; QoQ growth of 5%
? PAT at ? 42.6 crores; QoQ growth of 5%
? DSO at 36 days (Q2'24: 35 days)
About Sonata Software
Sonata Software is a leading Modernization Engineering company, powered by its unique Platformation framework that brings together industry expertise, platform technology excellence, design innovation, and strategic engagement models to deliver sustained value to customers. We partner with Fortune 500 clients to help them reimagine their business processes as part of modernization programs. As part of this phase, we drive business enablement sessions, consulting, and business processes to be aligned with best-in-class industry-specific practices. Our outcome-based Modernization Services include Cloud, Data, Dynamics, Managed Services, Automation, and Digital Contact Center. We offer services and solutions around newer technologies like Generative AI, MS Fabric, and other modernization platforms. Sonata has a strong global presence in key regions including the US, UK, Europe, APAC, and ANZ. We are a trusted partner of world-leading companies in TMT, Retail & CPG, Manufacturing, BFSI, and HLS space. Our partner ecosystem boasts of strong relationships with Microsoft, AWS, Salesforce, Snowflake, Google, and Industry partners and is critical to the value we create with our clients.
For further information, please contact:
Nandita Venkatesh
Sonata Software Limited
CIN- L72200MH1994PLC082110
Sonata Towers, Global Village,
RVCE Post, Mysore Road,
Bangalore 560019, India
Tel: +91 80 67781999
Nandita.v@sonata-software.com
SONATA SOFTWARE LIMITED 
