Despite a decrease in the net profit, the share price of an IT company moved up by 1.82 percent to Rs. 767.75 at 11:50 AM, compared to its opening price of Rs. 754 on Friday. This happened following the announcement of the company’s financial results for Q3 FY23-24.
With a market cap of Rs. 21,444 crore, shares of Sonata Software Ltd. opened at Rs. 754 on February 1st, whereas its previous closing price was Rs. 764.65.
The company has delivered nearly 46.3 percent returns in the last six months, whereas it has given more than 144 percent in the last one year. So far, it has given positive returns of around 5.9 percent in 2024.
The fluctuations in the share prices were observed after the company announced its financial results on Monday, for the third quarter and nine months ended 31st December 2023, through a recent filing with the stock exchanges.
The net profit of the company decreased by 137 percent from Rs. 124 crore in Q2 FY23-24 to a loss of Rs. 46 crore in Q3 FY23-24, whereas, the net profit on a year-on-year basis decreased by 139 percent from a profit of Rs. 118 crore in Q3 FY22-23 to a loss of Rs. 46 crore in Q3 FY23-24.
However, the company’s revenue from operations increased by 10.26 percent year-on-year basis from Rs. 2,261 crore in Q3 FY22-23 to Rs. 2,493 crore in Q3 FY23-24.
On a quarterly basis, the revenue from operations of the company increased by 30.31 percent from Rs. 1,913 crore in Q2 FY23-24 to Rs. 2,493 crore in Q3 FY23-24.
As of December 2023, FIIs hold 14.47 percent of the shares, whereas DIIs hold 17.60 percent of the shares in the company, aggregating to 32.07 percent of the institutional holdings.
On March 10 last year, Sonata Software North America Inc., (SSNA) a wholly owned subsidiary of Sonata Software Limited, acquired a 100 percent stake in Quant Systems Inc., for a purchase consideration of Rs. 1303.48 crore including cash consideration of Rs. 579.60 crore and Rs. 723.88 crore of contingent consideration payable over two years.
Sonata Software is a leader in Modernisation Engineering and offers services and solutions around newer technologies such as Generative Al, MS Fabric, and other modernization platforms.
Written by Shivani Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
