Shares of Sonata Software Ltd surged more than 3% to reach an intraday high of Rs 649 a share after the company announced a multi-million dollar modernization deal with a major access solutions client in Australia.

According to the company, the transformative contract entails standardizing and optimizing the client’s APAC business operations across 13 countries, guaranteeing real-time collaboration and improved operational efficiency throughout their value chain of partners, suppliers, distributors, and customers.

Highlighting the partnership, Anthony Lange, Chief Revenue Officer of Sonata Software, said, “Our focus will be on automating end-to-end processes using Microsoft’s cutting-edge technology stack to enhance scalability and ensure seamless adoption for our client.”

In the September quarter, Sonata Software reported a 14% drop in total sales and a modest 0.9% increase in net profit year over year. sales from the company’s overseas operations increased to Rs 707.9 crore from Rs 687.8 crore during the same period last year, while domestic sales dropped precipitously to Rs 1,461.9 crore from Rs 1,849.4 crore. With margins improving to 6.7% from 5.7% in the previous quarter, earnings before interest and tax (EBIT) climbed 1.1% to Rs 144.3 crore.

Sonata Software’s stock has underperformed despite today’s recovery, down more than 14% so far this year, while the Nifty 50 has increased by 10%. On February 27, 2024, the stock reached its 52-week high of Rs 867 per share earlier this year.

However, at 3:30 pm, the shares of Sonata Software closed 0.016% lower at Rs 628.10 on NSE.

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