Sonata Software shares fall 14% in early deals, here's why

Shares of multibagger Sonata Software Ltd fell 14% in early deals post Q4 earnings. The IT stock slipped 13.80% to Rs 549.30 against the previous close of Rs 637.40. Total 0.24 lakh shares of the firm changed hands amounting to a turnover of Rs 1.65 crore on BSE. Market cap of the firm slipped to Rs 15,815 crore on BSE.  Sonata Software stock has lost 22.39% this year and gained 29% in a year. The software industry stock fell to a 52-week low of Rs 402.50 on May 15, 2023 and climbed to a 52 week high of Rs 867.10 on February 27, 2024.

Global IT services and technology solutions company Sonata Software reported a 3% year-on-year (YoY) drop in net profit to Rs 110.4 crore for the March 2024 quarter against a net profit of Rs 113.8 crore, the company said. Revenue from operations rose 14.53% to Rs 2,191.6 crore in the last quarter against Rs 1,913.5 crore in the corresponding period of the preceding fiscal.

The board of the firm has recommended a final dividend of Rs 4.40 per equity share (440% on par value Rs 1) for the financial year ended March 31, 2024. The final dividend is payable subject to the approval of shareholders at the ensuing annual general meeting (AGM).

Additionally, board of the firm cleared the merger of Encore I.T. Services Solutions Private Ltd (a wholly-owned subsidiary of the company) with the company. It accorded an in-principle approval for the merger of Encore Software Services Inc, USA (a wholly-owned subsidiary of Sonata Software North America Inc, USA) with Sonata Software North America Inc, USA, also a wholly-owned subsidiary.

Sonata Software specialises in cloud and data modernisation, Microsoft Dynamics Modernization, digital contact center setup and management, managed cloud services and digital transformation services.