Sonata Software Limited, an Indian information technology services company, saw its shares gain more than 5 percent till the afternoon on Thursday and were trading at Rs 725 levels.
The scrip remained in focus after its wholly owned subsidiary Sonata Software North America Inc signed a definitive agreement to purchase Quant Systems Inc., a Texas-based IT services Corporation. The company will make an upfront payment of US $65 Million followed by a Deferred achievement-based payment of US $95 Million over the next 2 years.
Quant Systems, Inc. a Texas-based IT services Corporation, is an Enterprise Data Analytics and Cloud modernization service provider for leading Fortune 500 clients.
This acquisition is in line with Sonata’s strategy to accelerate the growth curve and build scale. It will accelerate Sonata’s capabilities in Enterprise Data Analytics, Cloud modernization, Cyber security, Salesforce, Data Privacy, Adobe, and Digital & Mobile App solutions, including differentiated IPs for Salesforce (workbox.io) and Chatbot (Lisa) technologies.
Sonata Software Limited provides services in business intelligence and analytics, application development management (ADM), mobility, cloud, social media, testing, enterprise services (ERP and CRM), and infrastructure management services.
In the December quarter of FY23, the company reported a total revenue of Rs 2,260.78 Crore, which increased 22 percent YoY from Rs 1,858.02 Crore. From the previous quarter, their revenue jumped 51 percent from Rs 1,495.98 Crore.
Their net profit in the quarter under review was at Rs 117.66 Crore which jumped 20 percent YoY from Rs 97.67 Crore and 4 percent QoQ from Rs 112.71 Crore.
The stock has been rallying for the past month and has gained 23 percent. In the span of six months, the stock has logged a return of approximately 40 percent.
The stock has a market capitalization of Rs 10,192 Crore and a dividend yield of 2.84%. The promoters of the company hold a 28.17 percent stake while the Foreign Institutional Investors (FIIs) hold a 12.84 percent stake in the company.
Written by Anoushka Roy
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