Sonata Software Q3 results: Net profit falls 29% to Rs 54 crore

IT services firm Sonata Software reported a 29% drop in net profit for the quarter ended December 2020 at Rs 53.8 crore. Revenues for the quarter were up 13% at Rs 1,396.2 crore. The company made a provision for income tax settlement the Vivad se Vishwas Scheme for RS 15.6 crore for international IT Services and Rs 6.2 crore for domestic products & services. Consequently, contingent liability (based on the original demand as per order) has been reduced by Rs 33.7Crores for International IT Services and Rs15.3 crores for Domestic Products & Services, it said in a statement.

“The results for the quarter reflect all round growth across different segments of the business, growth especially in the digital business resulting in highly profitable growth. This is a clear indication that our overall strategy of building digital enterprises by creating platforms through our unique ‘Platformation’ methodology is more relevant in the current context with greater reliance and investments by enterprises in digitization and automation,” said Srikar Reddy, Managing Director & CEO, Sonata Software.