Sonata Software Ltd's Q4FY25 Quarterly Results

Result Summary

• Sonata Software Ltd reported a 21.6% quarter-on-quarter (QoQ) decrease in its consolidated revenues for the quarter-ended Mar (Q4FY25). On a year-on-year (YoY) basis, it witnessed a growth of 15.9%.
• Its expenses for the quarter were down by 22.9% QoQ and up 17.6% YoY.
• The net profit increased 5.1% QoQ and decreased 3.0% YoY.
• The earnings per share (EPS) of Sonata Software Ltd stood at 4 during Q4FY25.

Financial Statments for Q4FY25

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Sonata Software Ltd is a company involved primarily in the IT services industry, providing a range of services and solutions including software development, IT consulting, and digital transformation services. The company serves a diverse range of industries, offering expertise in areas such as enterprise application management, cloud infrastructure, data analytics, and software product engineering. Recent developments in the company's landscape are not specified in the provided data, so any recent strategic initiatives or market expansions remain unclarified for this analysis.

Revenue

In the fourth quarter of the fiscal year 2025 (Q4FY25), Sonata Software Ltd reported a total income of ₹2246.31 crores. This represents a 21.6% decrease on a quarter-over-quarter (QoQ) basis compared to the previous quarter (Q3FY25), where the total income was ₹2864.28 crores. However, when compared on a year-over-year (YoY) basis with Q4FY24, where the total income was ₹1938.47 crores, there is a 15.9% increase. This YoY growth suggests an improvement in revenue generation capability over the year, despite the recent quarterly decline.

Profitability

Sonata Software Ltd's profitability metrics for Q4FY25 showed a profit before tax of ₹143.58 crores, which is a 4.9% increase compared to Q3FY25, where it was ₹136.82 crores. However, this is a slight decrease from Q4FY24's profit before tax of ₹150.48 crores, marking a 4.6% decline YoY. The profit after tax for Q4FY25 was ₹110.36 crores, improving by 5.1% QoQ from ₹105.01 crores in Q3FY25, but seeing a marginal decrease of 3.0% YoY from ₹113.77 crores in Q4FY24. The earnings per share (EPS) in Q4FY25 was ₹4.00, showing a 5.3% QoQ increase from ₹3.80, yet a significant 51.2% decrease YoY from ₹8.20, indicating a substantial reduction in earnings attributed per share over the year.

Operating Metrics

For Q4FY25, Sonata Software Ltd's total expenses were ₹2102.73 crores, which decreased by 22.9% QoQ from ₹2727.46 crores in Q3FY25. Year-over-year, total expenses increased by 17.6% from ₹1787.99 crores in Q4FY24. The tax expense for Q4FY25 was ₹33.22 crores, which is a 4.4% increase QoQ from ₹31.81 crores, but a 9.5% decrease YoY from ₹36.71 crores. These changes in the operating metrics reflect the company's cost management efforts and variations in tax liabilities over the periods considered.