Shares of Sonata Software declined after the company reported its Q2 FY25 earnings, showing a mixed performance. Sonata’s consolidated net profit increased marginally by 0.81% to ₹106.49 crore in Q2 FY25, up from ₹105.63 crore in the previous quarter (Q1 FY25). However, the company’s revenue fell 14.13% quarter-on-quarter to ₹2,169.83 crore, reflecting a slowdown in growth.
Year-on-year, Sonata Software’s consolidated revenue saw a 13.45% increase, though net profit declined by 12.24% compared to Q2 FY24. The company’s profit before tax (PBT) rose 13.31% QoQ to ₹144.34 crore, indicating improved profitability in relation to the previous quarter. EBITDA stood at ₹177.3 crore, marking a slight 1% growth from ₹176.2 crore in Q1 FY25.
In dollar terms, Sonata’s revenue was $84.6 million for Q2 FY25, up 2.3% QoQ and 4.6% YoY. The company added eight new customers during the quarter and reported a healthy pipeline with multiple modernization deals from both existing and new clients.
The stock’s decline reflects investor caution regarding the revenue dip and potential challenges in sustaining growth, despite the positive profit figures.
As of 10:34 the shares of Sonata Software were trading 1.30% lower at ₹623.55
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