Sonata Software Q2 net profit dips 4% to Rs 37.8 cr

IT services firm Sonata Software today said its consolidated net profit declined 4 per cent to Rs 37.8 crore for the September quarter, impacted by forex movement and additional investment in intellectual property (IP) development.
The company's net profit stood at Rs 39.3 crore in the year-ago period, Sonata said in a statement.
Its revenues grew 31 per cent to Rs 522.5 crore in July-September, from Rs 398.4 crore in the same quarter last year.
Further, the company has reported an exceptional item of Rs 2.09 crore in the first quarter on account of interest on refunds received from the Income Tax department.

"Though our profits are down marginally year-on-year due to forex and additional investment in IP development, we are pleased with our growth in international services and this is a result of our IP-led strategy to drive digital transformation in our verticals of travel, retail, distribution and ISVs (independent software vendors)," Sonata MD and CEO Srikar Reddy said.
The company's international IT services revenue was at Rs 209 crore (up 7 per cent quarter on quarter) while domestic products and services revenue stood at Rs 317 crore (down 35 per cent q-o-q).
Its cash and equivalents stood at approximately Rs 132 crore (net of borrowings), the statement said.

On sequential basis, net profit grew 3 per cent from Rs 36.8 crore in April-June 2016 while revenue slipped 23 per cent from Rs 677.8 crore.