Share price of Sonata Software rose 8.32 per cent to Rs 677 per share on the BSE in intraday deals on Thursday after the software and consulting firm bagged a multi-million dollar strategic IT outsourcing deal from a leading US healthcare and wellness company.
This deal was secured in June 2024, after an extensive evaluation and selection process, and was also discussed during our Q1FY25 earnings call on July 31, 2024, the company said in a stock exchange filing.
As part of the collaboration, Sonata Software will support the customer in achieving two objectives: optimizing IT budgets and cost savings through systematic improvements and technical levers and modernizing the technology landscape by leveraging enterprise data, artificial intelligence and automation in patient-facing systems and back-office operations.
“As part of its five-year strategic plan to achieve $1.5 billion in annual revenues, Sonata Software has made targeted investments in the Healthcare & Life Sciences (HLS) vertical. These investments are already paying off, making HLS one of Sonata’s fastest growing business units,” the company said in a statement.
Sonata Software Limited (SSL) is a global systems integration and technology partner, providing IT services and software solutions to customers worldwide. The company helps accelerate digital transformation and modernization for businesses.
For the April-June quarter of financial year 2024-25 (Q1FY25), Sonata Software reported a quarter-on-quarter decline of 4.3 percent in consolidated net profit, which translates to Rs 105.60 crore. On a year-on-year basis, the profit declined 12 percent.
Despite this, revenues in the June quarter rose to Rs 2,527 crore, up 15 per cent from the previous quarter of Rs 2,191 crore. The same quarter last year saw a 25 per cent increase from Rs 2,015 crore.
The company has a total market capitalization in India of Rs 18,227.61 crore. The stock is trading at a price-earnings ratio of 46.07 times with an EPS of Rs 13.56 per share.
At 11:13 am, the company’s stock was trading up 4.17 per cent at Rs 651. In comparison, the BSE Sensex was trading up 0.29 per cent at 82,021 levels.
First publication: Aug 29, 2024 | 11:26 AM IST