Sonata Software Ltd. share price target

Sonata Software reported revenue of INR 19,135 mn in Q4FY23 as against INR 14,636 mn in Q4FY22, registering a growth of 30.7% on a YoY basis. However, revenue declined by 15.4% on a QoQ basis mainly due to slowdown in the Hi-tech segment. The USD IITS revenue grew by 18.1% YoY and 8.7% QoQ to USD 65.8 mn.

Sonata Software Ltd (SSL) is a leading modernization and digital engineering company, headquartered in Bangalore (founded in 1986)

Sonata software reported rupee revenue of INR 22,608 Mn with a 51% QoQ growth for Q3FY23. It reported an industry leading QoQ revenue growth of 6.3% in INR terms (4.8% in USD terms) at INR 4896 Mn in the international business. Among the business verticals, ISV accounted for 36% of the revenue, followed by distribution and manufacturing which accounted for 22%. TMT, manufacturing, retail/TTH are the industry verticals which witnessed a strong growth during the quarter.

Sonata Software (Sonata) has reported IITS (international IT services) revenue at
US$57.8mn (+4% QoQ CC, 1.8% QoQ US$, largely in line with our estimates) in Q2FY23.

Sonata Software Ltd (SSOF) Q2FY23 performance was marginally higher than our estimate. Rupee revenue grew by ~55% YoY to INR 14,960Mn (KRChoksey est. INR 12,122Mn).