Sonata Software Q1 sequential revenue up 25%

BENGALURU: Mid-tier IT services company Sonata Software reported a 25% sequential increase in quarterly revenue helped by its business from India. Total revenue rose to Rs 677.8 crore from Rs 540.9 crore, for the quarter ended March.
The Bengaluru-based company receives two-thirds of its revenues from the Indian market where it is a distributor of software products and the remaining from global IT services.Revenue from Indian market grew 35.6% to Rs 501.31 crore.
Chief financial officer Prasanna Oak said the domestic business was helped by a few large deal wins during the quarter. The company, which counts Qatar Airways and Microsoft among its clients, said revenue from its international IT services rose 4% to Rs 195.7 crore.
The international business was, however, impacted by Brexit, with revenue contribution from the UK falling to about 10-15% from 20%, Oak added.
“The quarter saw good top line performance across business divisions. This is a result of our execution of our IP led strategy of being a digital transformation partner across all our verticals and focus on digital technologies,” chief executive Srikar Reddy said.
Net profit, however, fell 3.6% to Rs 36.8 crore due to higher expenses related to salary hikes of employees and finance costs.
Sonata also said digital contributed 31% to the total revenue and its attrition during the quarter was 17%. As of June 30, the company has 3,291 people, up from 3,259 sequentially.