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Sonata Software Q4 Results | Revenue up 19%, net profit dips 3%; declares dividendProfit after tax (PAT) for the full year FY25 surged 69.9% YoY to ₹246.6 crore. Shares of Sonata Software Ltd ended at ₹396.85, up by ₹11.35 or 2.94% on the BSE.By Jomy Jos Pullokaran   May 7, 2025, 6:38:55 PM IST (Published)3 Min ReadIT company Sonata Software Ltd on Wednesday, May 7, reported a 2.56% year-on-year (YoY) decline in net profit at ₹107.53 crore for Q4FY25 over ₹110.36 crore last year.

Revenue from operations increased 19.4% to ₹2,617.2 crore against ₹2,191.61 crore in the corresponding period of the preceding fiscal.

In its international IT services segment, the company posted revenue of ₹2,829.7 crore for the full year, registering a 5.6% YoY increase. However, revenue for Q4FY25 declined 4% sequentially to ₹702.3 crore. In USD terms, FY25 revenue stood at $335.5 million, up 3.7% YoY, while Q4 revenue came in at $81.3 million, marking a 6.6% quarter-on-quarter (QoQ) decline.

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The company’s EBITDA (before other income and forex) for the year stood at ₹480.5 crore, reflecting a 14.7% drop from FY24. Q4 EBITDA was ₹115.7 crore, up 8% sequentially. Profit after tax (PAT) for FY25 surged 69.9% YoY to ₹246.6 crore from ₹145.1 crore.

Profit after tax (PAT) for Q4FY25 stood at ₹62.3 crore, up 9.5% QoQ. The segment also showed operational efficiency with days sales outstanding (DSO) improving to 61 days in Q4, compared to 64 days in Q3. The company added 14 new customers during the quarter.

In the domestic products & services segment, Sonata reported robust revenue growth of 23.4% YoY in FY25, reaching ₹7,340.6 crore. The Q4FY25 revenue was ₹1,918.2 crore, down 9.1% QoQ. Gross contribution for the year stood at ₹299.1 crore, up 14.8% YoY, while Q4 contribution declined 4.3% to ₹78.4 crore.

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EBITDA (before other income and forex) for the domestic business rose 26.8% YoY to ₹208.6 crore in FY25. The Q4 EBITDA remained largely flat at ₹56.5 crore, up 0.1% QoQ. PAT for the year was ₹178.1 crore, a 9% increase YoY, but Q4 PAT declined 6% sequentially to ₹45.2 crore.

Days sales outstanding in this segment improved to 46 days in Q4, compared to 51 days in the previous quarter. Return on capital employed (ROCE) stood at 43.2%, down from 48.5% in Q3, while return on net worth (RONW) was 41.8%, compared to 47.7% in the prior quarter.

The board has recommended a final dividend of ₹4.40 per equity share of ₹1 for the financial year ended March 31, 2025, payable subject to the approval of shareholders at the ensuing annual general meeting (AGM). The dividend will be dispatched/credited within 30 days of the AGM.

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The results came after the close of the market hours. Shares of Sonata Software Ltd ended at ₹396.85, up by ₹11.35, or 2.94%, on the BSE.

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