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Sonata Software – FY21-22 Third Quarter Consolidated EBIDTA at Rs. 147 Crores, 8% QoQ Growth and 45% YoY Growth
Posted on January 19, 2022
Sonata Software, a global IT services and technology solutions company, today released its unaudited financial results for its third quarter and nine months ended December 31, 2021.
Srikar Reddy, Managing Director and CEO of Sonata Software noted-
“The results confirm that we continue to deliver well on our goal of being a strategic partner for our clients in building world-class digital businesses through our unique ‘platform’ methodology.
Developing world-class skills in digital services such as platform engineering, cloud transformation, data analytics, and the Microsoft Digital Platform and aligning them with the platform helped us win and execute enterprise-class digital engagements.
We are seeing a continued uptick in the demand situation for digital services with growth in both existing accounts and our pipeline of new contracts. Given the very high demand for digital talent, we continue to execute a comprehensive talent plan, including a series of initiatives to improve employee engagement and retention, build up-front capabilities, focus more on training and development and expand our delivery centers with nearly onshore delivery centers for the United States and Europe.
Our business in India continued to show robust growth with the shift to cloud and digital infrastructure.
With clear and continued visibility and business opportunities, we will continue to invest for growth, in talent acquisition and transformation, intellectual property creation, skills, capability development, and sales and marketing.
Performance highlights for the quarter:
- Revenues at Rs 1,858 Crores, 93% QoQ growth.
- EBITDA at Rs 146.9 Crores, 8% QoQ growth
- Net profit at Rs 97.6 Crores, 7% QoQ growth
- Cash and cash equivalents (net of borrowings) of approximately Rs 637 Crores.
- International IT Services:
- Revenues at Rs 395.2 crores; 10% QoQ growth;
- Revenue in USD of 53.4 million, QoQ revenue growth of 8.1% in USD and constant currency growth of 8.6%.
- Growth in all geographical areas (United States 11%, Europe 2.5%, Rest of the world 2.3%).
- EBITDA at Rs 110.5 Crores: 7% QoQ growth;
- Net Profit (PAT) at Rs 71.2 Crores, QoQ growth of 6%
- Added 11 new customers during the quarter.
- The overall strategy of building digital businesses by building a platform through our unique platform methodology delivers results.
- Strong growth in digital-enabled skills such as managed cloud services and digital platform services (Microsoft and Open source) and targeted verticals such as ISV, Retail (Essential) and Commodity Business & Service Industry.
- Strong cash and liquidity positions maintained. The DSO is 43 days.
- Our pipeline continues to be healthy and strong with multiple new digital wins from existing and new customers.
- National products and services:
- Revenues at Rs 1,464.2 crore: 142% QoQ growth;
- Domestic commercial revenue generated through multi-year, cloud-based annuity contracts. 78% of revenue comes from cloud-based offerings. Sustained growth ensured through strong customer retention, 83% gross margin from customers with turnover (customer revenue) above 1,000 crores and over 80% gross margin from repeat customers with more than 5 years of association.
- Domestic activity measured on absolute gross margin. Gross margin for the quarter at Rs 45.1 crores vs. Rs 39.9 Crores
- EBITDA at Rs 36.9 Crores: 10% QoQ growth;
- Net profit (PAT) at Rs 26.4 crores QoQ growth of 11%
- DSO at 33 days.