Sonata Software Shares Surge 3.42% Following Multi-Million Dollar Deal in Australia

Sonata Software’s stock price rose by 3.42% on the BSE, reaching an intraday high of Rs 649.60 on Wednesday, following the announcement of a major multi-million dollar contract win in Australia. The deal, secured during Q1 of the financial year 2024-25, involves the modernization of business processes for an access solutions client across 13 countries in the APAC region.

The contract will focus on streamlining and integrating the client’s operations to ensure real-time engagement with customers, suppliers, distributors, and partners. Sonata Software aims to leverage Microsoft’s technology stack to enhance scalability and automation for the client.

In a statement, Anthony Lange, Chief Revenue Officer at Sonata Software, emphasized that the project would help improve operational efficiency while accelerating technology adoption for the client. The deal is seen as a significant boost to Sonata’s portfolio in the region.

Despite a slight dip in revenue for Q2FY25, Sonata Software posted a modest 0.9% rise in net profit, reaching Rs 106.5 crore. However, revenue fell by 14% quarter-on-quarter, from Rs 2,527.4 crore in Q1 to Rs 2,169.8 crore. The company’s international revenue saw a positive uptick, rising from Rs 687.8 crore to Rs 707.9 crore, while domestic revenue saw a decline.

Earnings before interest and tax (EBIT) grew by 1.1%, and operating margins improved to 6.7% from the previous quarter’s 5.7%, indicating some operational improvement despite the revenue drop.