Sonata Software net slips in Q2

Bengaluru, Nov 2 (IANS) Global IT services firm Sonata Software Ltd on Wednesday reported consolidated net profit of Rs.37.8 crore for the second quarter of 2016-17, registering 4 per cent decline from Rs.39.3 crore in same period last year.

In a regulatory filing to the stock exchanges, the city-based listed firm said consolidated revenue for the quarter under review increased 31 per cent to Rs 522 crore from Rs 398 crore in last year.

Sequentially, however, net profit rose 3 per cent from Rs 36.8 crore in first quarter but revenue declined 23 per cent from Rs 677.8 crore in Q1.

Earnings before interest, tax, depreciation and amortisation (Ebitda) remained flat and sequentially at Rs.59 crore as against Rs 59.6 crore last year and Rs.58.5 crore last quarter.

“Though our profit declined YoY due to forex volatility and additional investment in IP (Intellectual Property) development, we had 7 per cent sequential growth in international services as a result of IP-led strategy to drive digital transformation in verticals such as travel, retail and distribution,” said Sonata Chief Executive Srikar Reddy in a statement.