Shares of Sonata Software Ltd, which had been performing exceptionally well, took a sharp 14% decline in early trading following the announcement of their Q4 earnings. The IT stock plummeted by 13.80%, falling from Rs 637.40 to Rs 549.30. This drop saw a turnover of Rs 1.65 crore on BSE, with around 0.24 lakh shares changing hands. Sonata Software’s market cap also fell to Rs 15,815 crore on BSE.
Sonata Software’s decrease of 29.39%
Over the course of this year, Sonata Software’s stock has seen a decrease of 22.39%, although it has gained 29% over the past year. The stock’s performance has been quite volatile, ranging from a low of Rs 402.50 on May 15, 2023, to a high of Rs 867.10 on February 27, 2024.
Sonata Software, a global IT services and technology solutions company, announced a 3% year-on-year (YoY) decrease in net profit, amounting to Rs 110.4 crore for the quarter ending in March 2024, compared to Rs 113.8 crore in the previous year. On the bright side, revenue from operations saw a significant increase of 14.53%, reaching Rs 2,191.6 crore in the last quarter as opposed to Rs 1,913.5 crore in the corresponding period of the preceding fiscal.
The company’s board has proposed a final dividend of Rs 4.40 per equity share (440% on par value Rs 1) for the financial year ending March 31, 2024, pending approval from shareholders at the upcoming annual general meeting (AGM).
Furthermore, the board approved the merger of Encore I.T. Services Solutions Private Ltd, a wholly-owned subsidiary of Sonata Software, with the company itself. It also granted an in-principle approval for the merger of Encore Software Services Inc, USA, a subsidiary of Sonata Software North America Inc, USA, with Sonata Software North America Inc, USA, also a subsidiary of Sonata Software.
Sonata Software focuses on various specialized services including cloud and data modernization, Microsoft Dynamics modernization, digital contact center setup and management, managed cloud services, and digital transformation services.
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