In the first quarter of this financial year, Sonata Software, a small-cap IT company, demonstrated strong financial performance. Their net profit increased by 5.6% QoQ, reaching Rs.120.1 crore compared to the previous quarter’s Rs.113.7 crore. Additionally, the company’s revenue witnessed a growth of 5.3% QoQ, reaching INR 2,015.3 crore from the previous quarter.
Comparing the net income to the previous year, it showed significant improvement, amounting to Rs.1,201.2 million, whereas a year ago, it was Rs.1,077.6 million.
On the downside, the company’s QoQ EBIT experienced a decline of 25.5%, settling at Rs.147 crore, and the margin dropped to 7.3 percent from the previous quarter’s 10.3 percent.
In terms of earnings per share from continuing operations, basic earnings per share were Rs.8.66, an increase from Rs.7.78 a year ago, while diluted earnings per share from continuing operations were Rs.8.65, also higher than the Rs.7.78 a year ago.
On the Bombay Stock Exchange (BSE), the company’s stock ended the day with a nearly 0.9 percent increase, trading at Rs 1,061.8 per share on Friday, July 28.
Moreover, the company is well on track to achieve a significant milestone of USD 500 million in revenue by FY26. The company has been proactive while emphasizing on large deals and is witnessing a surge in data and artificial intelligence (AI) related engagements.