Sonata Software program Hits Excessive, Shares Rise 44% Since 12 months Begin

Sonata Software program shares hit a brand new excessive of Rs 809, rallying 5% on the BSE in Thursday’s intraday commerce on a strong greenback income progress outlook.

Within the calendar yr, info expertise (IT) inventory has risen 44% in comparison with a 3.4% decline within the S&P BSE Sensex. At 9:52 am, it quoted 3% larger at Rs 796.40, towards a 0.56% fall within the benchmark index.

Sonata Software program shares soared 27% prior to now month after the corporate acknowledged a stable monetary efficiency for Q3FY23. Sonata’s IT companies greenback revenues grew 4.7% quarter-on-quarter (QoQ) and three.9% in fixed forex (CC) phrases, whereas income got here in at Rs 489.6 crore, up 6.3% QoQ and 23.9% year-on-year (YoY).

Ebitda margins in IT companies fell 70 bps QoQ to 25.2% as a result of raised worker prices and enlarged advertising and marketing spending in Q3. After-tax, the corporate’s consolidated revenue soared 20% YoY and 4% QoQ at Rs 117.60 crore.

Sonata presents IT companies at 30% and product licensing & deployment at 70%. The corporate delivers IT companies to journey, retail, agro & commodities, manufacturing, and software program sellers. The corporate is internet debt free, having a wholesome double-digit return ratio, RoCE of over 30%.

On February 22, Sonata’s wholly-owned US secondary contracted a definitive settlement to acquire a 100% stake in US-based Quant Programs (QS) for a complete reflection of $160 million (4.3 occasions gross sales), $65 million to be waged upfront whereas the remaining $95 million paid in 2 years on sure milestones.