Shares of Sonata Software program Ltd plummeted by over 13% after touching a day’s excessive of Rs 483.10 on seventh February, following the agency’s disclosure of a consumer ramp-down in a key vertical throughout Q3FY25, which is predicted to affect income for Q4FY25.
Sonata Software program confronted an unplanned ramp-down and gave a one-time low cost to a serious hi-tech consumer in Q3FY25, resulting in a decline within the TMT vertical.
The corporate expects a ‘full-quarter affect’ in Q4FY25 because of the ramp-down, projected to be a ‘de-growth’ quarter.
The ramp-down additionally impacted Q3FY25 margins, as EBITDA noticed a detrimental impact partially because of the one-time low cost.
A ‘ramp down’ refers to a gradual discount in providers or engagement with a consumer, probably resulting in contract termination.
The corporate’s Q3FY25 consolidated web revenue fell 1.4% QoQ to Rs 105 crore, with worldwide providers revenue declining by 8.4% to Rs 57 crore.
Consolidated EBITDA fell 7.8% QoQ to Rs 163.6 crore, and worldwide providers EBITDA dropped 16.9% QoQ to Rs 107 crore.
Worldwide providers income grew 3.4% QoQ to Rs 731.7 crore, whereas the home enterprise rose by 44.4% to Rs 2111 crore.
At 11:32 AM, the shares of Sonata Software program have been buying and selling 12.05% decrease at Rs 485.15 on NSE.
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