Sonata Software Reports Mixed Q3 Results, Shares Plunge on Client Ramp-Down

Sonata Software announced its Q3FY25 results, reporting a 4.4% QoQ revenue growth in International Services and a 16.7% QoQ gross contribution growth in Domestic Business. However, the company's shares plummeted by over 15% following the disclosure of an unplanned client ramp-down in the hi-tech sector. The ramp-down is expected to impact Q4FY25 revenue, with management guiding for a 2.5-3.5% sequential decline. Despite the setback, CEO Samir Dhir remains optimistic about long-term prospects, highlighting two large deal wins, including a multi-million-dollar Microsoft Fabric project. The company's consolidated revenue grew 31% QoQ to ₹2,842.8 crore, while net profit declined 1.4% to ₹105 crore.

Sources: Economic Times, CNBC-TV18, Moneycontrol