Are Sonata Software latest results good or bad?

Sonata Software has reported its financial results for the quarter ending June 2025, highlighting several operational trends. The company achieved its highest net sales in the last five quarters, amounting to Rs 2,965.18 crore, which reflects a growth of 13.30% compared to the previous quarter. Additionally, the profit after tax reached Rs 109.34 crore, marking a slight increase of 1.68% from the prior period, and earnings per share rose to Rs 3.94, suggesting enhanced profitability for shareholders.
However, the company faced challenges in its operating profit, which fell to Rs 159.65 crore, the lowest in five quarters, resulting in a decline in the operating profit margin to 5.38%. Furthermore, cash and cash equivalents decreased to Rs 449.43 crore, indicating a reduction in short-term liquidity, and the annual dividend per share was reduced to Rs 4.40, with a lower dividend payout ratio of 57.14%.

Overall, while Sonata Software experienced positive trends in net sales and profitability, it also encountered difficulties in operating profit and liquidity. Notably, the company saw an adjustment in its evaluation over the last three months, reflecting changes in its overall financial health.