Sonata Software net up 19% quarterly, 29% yearly

Last Updated: Fri, May 31, 2019 13:27 hrs
Sonata Software (Image Courtesy: Sonata Software)

Bengaluru: Global IT solutions provider Sonata Software has reported Rs 65 crore consolidated net profit for the fourth quarter of fiscal 2018-19, registering 19 per cent growth from Rs 55 crore in the same period a year ago.

"Consolidated net profit for fiscal 2018-19 grew 29 per cent annually to Rs 249 crore from Rs 193 crore in fiscal 2017-18," said the city-based firm in a statement on Friday.

Consolidated revenue for the quarter (Q4) under review from international IT services and domestic products and services increased 34 per cent annually to Rs 836 crore from Rs 626 crore in the same period a year ago.

Revenue for the fiscal (FY19) under review grew 21 per cent to Rs 2,961 crore from Rs 2,454 crore in FY18.

Sequentially, net profit, however, grew marginally two per cent to Rs 65 crore in the quarter under review (Q4) from Rs 64 crore a quarter ago.

Sequential revenue growth also remained flat (-1 per cent) at Rs 836 crore from Rs 844 crore a quarter ago.

Earnings before interest, tax, depreciation and ammortisation (Ebitda) for the quarter grew 28 per cent annually to Rs 97 crore from Rs 75 crore a year ago and 34 per cent for the fiscal to Rs 366 crore from Rs 278 crore a year ago.

Sequentially, Ebitda's growth was marginal (two per cent) to Rs 97 crore from Rs 95 crore a quarter ago.

"We have posted 21 per cent top-line (revenue) growth and 29 per cent net profit growth as we remain focused on our goal to be digital transformation partner of choice to our global customers," said Sonata Managing Director Srikar Reddy in the statement here.

The company's board has recommended a whopping 800 per cent (Rs 8) per share of Re 1 face value as final dividend and 1,275 per cent (Rs 12.75) per share as total dividend for the fiscal under review (FY19).

The outsourcing firm acquired for an unspecified amount Scalable Data Systems in Australia and Sopris Systems in the US during the quarter for monetising its growth in the Microsoft-led digital transformation opportunity.

"We invest in emerging technologies like robotic process automation (RPA), artificial intelligence (AI), machine learning (ML) and platform engineering for the cloud," said Reddy.

The company also invests in new talent for organic and inorganic growth.

"We also made strategic investment in real time retail data platform Retail 10X to enhance our retail and consumer goods platform growth," added Reddy.

The company's scrip with Re 1 face value traded at Rs 355.45 till noon on the BSE on Friday as against Thursday's closing rate of Rs 354.45 and opening price of Rs 359.20.