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earnings | IST

International business operational margin to maintain 25% growth in short term: Sonata Software

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Sonata Software posted a sequential jump of 74 percent in December quarter revenue led by the domestic products vertical which doubled quarter-on-quarter (QoQ).

Sonata Software posted a sequential jump of 74 percent in December quarter revenue led by the domestic products vertical which doubled quarter-on-quarter (QoQ).
To discuss the performance and the way forward, the company's CFO Jagannathan Chakravarthi spoke to CNBC-TV18.
On international business, he said, “In dollar terms, we had a 5 percentage QoQ growth in the international business. On a constant currency basis it is what 2.5 percentage, this is again an industry-leading growth on QoQ basis.”
The company’s international business EBITDA margins have improved to 29 percent in Q3FY21 as compared to 24 percent in the previous quarter.
Chakravarthi expects EBITDA growth to continue in the range of 24-25 percent for international business.
“We are very confident of doing that in the medium terms,” he said.
On domestic business, Chakravarthi said, “As we mentioned earlier in our commentaries also the domestic will be a lumpy QoQ because it depends on the contracts of the customers. You have to see a year on year growth always for the domestic business. This domestic business needs to be measured on what is the absolute amount of gross contribution that the business make.”
“This quarter we have made about Rs 39 crore of gross contribution which is historically high for this business,” he added.
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