Sonata Software Reports Mixed Q3 Results Amid Strong Sales Growth and Declining Profit Margins
Sonata Software's financial results for the quarter ending December 2024 show a notable increase in net sales, reaching Rs 2,842.79 crore, the highest in five quarters. However, the company faces challenges with a decline in operating profit margin and decreases in both profit before tax and profit after tax.
Sonata Software has recently reported its financial results for the quarter ending December 2024, revealing a mixed performance landscape. The company achieved net sales of Rs 2,842.79 crore, marking the highest figure in the last five quarters and reflecting a growth of 21.2% compared to the average net sales of the previous four quarters. This positive sales trend indicates a robust demand for Sonata's offerings in the IT software sector.However, the results also highlight some challenges. The operating profit margin has reached its lowest point in the last five quarters at 5.75%, suggesting a decline in operational efficiency. Additionally, profit before tax (PBT) and profit after tax (PAT) have both shown a downward trend, with PBT at Rs 115.33 crore and PAT at Rs 105.01 crore, representing declines of 5.7% and 6.9%, respectively, from their previous four-quarter averages.
In light of these developments, Sonata Software has undergone an adjustment in its evaluation, reflecting the complexities of its current financial standing.
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