This company, which provides IT solutions and services to its US clients, surged 8% after it announced the signing of its second-largest deal in its history, with a contract value of Rs 622.54 crore.
Price Movement
With a market capitalization of Rs 9,707 crore, the shares of Sonata Software Ltd are currently trading at Rs 346 per share, down by 54 percent from its 52-week high of Rs 764 per share. During the last one year, the stock has given a negative return of 49.40 percent.
About the announcement
On Monday, Sonata Software announced that it has signed a large contract with a Total Contract Value of $73 Million (Rs 622.54 crore) for 5 years, with a leading US TMT Company
This multi-year agreement with a US firm is to fuel its digital agenda, with an emphasis on global scalability, accelerated innovation, and optimization of IT operations through an AI-first outsourcing approach. Under the agreement.
Sonata will establish an AI-driven Modernisation Engineering Center in India. The hub will manage platform engineering, cloud modernization (with the use of Amazon Cloud), company systems such as Salesforce and Workday, cybersecurity, data services, and new application development, all backed by automation and scalable engineering practices.
“This is the second-largest deal in Sonata’s history and a proud milestone for Team Sonata. It reflects our unique positioning as a right-sized partner for enterprises seeking deep modernization capabilities and AI-first transformation. We are excited to help our client unlock new speed, agility, and digital resilience levels,” said Samir Dhir, Managing Director and CEO of Sonata Software.
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Financial Highlights
It reported a revenue of Rs 2,843 crores in Q3 FY25, up by 14 percent, from its Q3 FY24 revenue of Rs 2,493 crores. However, it reported an increase of 43 percent in its Q3 FY25 net profit of Rs 105 crore as compared to a net loss of Rs 46 crore in Q3 FY24. It has an ROE and ROCE of 30.3 percent and 35.5 percent respectively, and is trading at a P/E of 23.06x as compared to its industry average of 31.41x.
About the company
Sonata Software Limited and its subsidiaries provide IT solutions and services in the US, Europe, the Middle East, Asia, India, and Australia. It has expertise in domains such as data modernization, cloud services, AI, process automation, and application management. It caters to sectors including banking, insurance, healthcare, manufacturing, and retail, and has alliances with leading technology companies such as Microsoft, AWS, Salesforce, ServiceNow, Snowflake, SAP, and Google Cloud.
Written by Satyajeet Mukherjee
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