“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.
The company added eight new clients during the quarter and reported strong growth from digital based competencies like managed cloud services and digital platformation services (Microsoft & Open source) and focused verticals like ISV, Retail (Essential) and Commodity Business & Service Industry.
Domestic business revenues were up 110% sequentially at Rs 1,099 crores. The company said that this was driven by multiyear cloud-based annuity deals. More than 60% of revenue was from cloud-based deals. About 82% of gross margin from customers with turnover (customer’s revenue) more than 1,000 crore and more than 60% of gross margin was earned from repetitive customers with more the 5 years of association.
“We have become a much stronger organization in the quality of clients, relationships, and internal investments, in creating world class competencies aligned to ‘Platformation’ across platform engineering, cloud transformation, data analytics and Microsoft Dynamics. Specifically, we would like to mention the GBW investment made which is focussed on delivering platform based CX(customer experience) is holding premise and differentiation to our digital offering. With clear visibility and business opportunity in the immediate future, we are focused now on investing for long term growth, in talent acquisition and transformation, IP and competency development,” said Reddy. The company announced compensation revision effective January 1st, 2021.
