Sonata Software plunges 15% on Q4 performance; profit declines 31% in FY24

Shares of Sonata Software plunged as much as 15.5 per cent at Rs 538.90 per share on the BSE in Wednesday’s intraday deals. In comparison the S&P BSE Sensex was trading marginally lower at 73,474 levels This comes after the company delivered a sluggish performance in its January-March quarter earnings for fiscal year 2023-24 (Q4FY24).

The IT firm, reported a 3 per cent year-on-year decline in net profit to Rs 110.36 crore for the fourth quarter ending March 2024, compared to Rs 113.77 crore in March 2023. For the fiscal year ended March 2024, net profit dropped by 31.73 per cent to Rs 308.50 crore, down from Rs 451.90 crore in the previous fiscal year.

In Q4, the company posted revenue of Rs 2,191.60 crore, reflecting an 11.8 per cent quarter-on-quarter dip but on a full year basis the revenue shot up by 15.6 per cent year-on-year to Rs 8,613.10 crore.

The domestic business achieved a gross contribution of Rs 260.4 crore for FY24, marking an 18.6 per cent year-on-year growth.

Further, the company’s board recommended a final dividend of Rs 4.40 per share (440 per cent on par value Rs 1), bringing the total dividend for FY24 to Rs 7.90 per share.

Samir Dhir, MD & CEO, Sonata Software said, “We remain optimistic about our long-term vision and growth prospects. In FY24, our international business delivered industry leading 34.3 per cent growth YoY. During Q4, large deals, decision delays and associated costs resulted in sequential degrowth both in our international revenue USD terms by 2.4 per cent QoQ, and consolidated PAT of 14.1 per cent QoQ.”

He added that despite Q4 and short-term headwinds, as the company reflects on the year, it has taken significant steps towards its long-term goals.

At 12:10 PM; the shares of the company were trading 13.71 per cent lower at Rs 550 per share. Presently Sonata Software is trading at a price to earnings multiple of 43 times.