Sonata Software Limited informed the exchanges on Monday that like most businesses globally, the company had an impact owing to Covid-19 and subsequent lockdowns and travel restrictions. The company suffered a 40% impact on its profits during the first half of the year owing to a reduction of business from clients in the travel and retail industries.
“Sonata was able to deliver services for all the existing contracts fulfil all the obligations. With Innovation and adaptability from our teams, we were able to work with our clients to address the changed scenario and help them in navigating the crisis. Our platformation and digital services became more relevant to current situation. This helped to reduce the negative impact on the bottom line, as evident in our quarterly results,” company said.
Since Mid-March, the company closed all its offices and moved operations to work from home smoothly. Globally all operations are going on unhindered while work continues to be done from home. The company will review moving operations to the office premises based on various factors. But right now it does not see that as a constraining factor for its business.
“We do not see any future negative impact owing to Covid 19. On the contrary, some of the clients’ business is coming back and seeing uptick. We believe that the worst is over, unless Covid-19 takes dramatic turn with a fresh wave forcing more closures of countries and businesses,” it said.
“Sonata has adequate capital and financial resources to meet any exigencies. Our cash position net of debt is Rs399cr as of end of June 2020. Our Q1FY21 profit was Rs49.9cr, 15% decline QoQ. We continue to be profitable and don’t see major risk to balance sheet owing Covid 19 unless there is worsening of the situation that we are not aware of.”
Sonata Software Ltd is currently trading at Rs309.55 up by Rs3 or 0.98% from its previous closing of Rs306.55 on the BSE.
