Bangalore-based IT consulting and software services firm Sonata Software on Thursday reported a consolidated net loss of Rs 25.98 crore for the September quarter, against a net profit of Rs 9 crore a year ago, despite growth in revenues.

The company attributed the poor numbers to the losses incurred on sale of its subsidiary TUI InfoTec during the quarter.

“During the quarter, Sonata Europe divested its 50.1 per cent shareholding in TUI InfoTec, its joint venture in Germany...at a loss,” it said, adding the losses are extraordinary in nature.

As part of this deal, Sonata was accorded status of a “preferred partner” for IT services to TUI Travel. Further, the offshore development centres currently being run by Sonata for TUI Travel and TUI InfoTec will continue, it said.

Total revenues stood at Rs 378.01 crore, up 49.33 per cent from Rs 253.13 crore in the corresponding period last year.

The company has two business verticals, including international IT services and domestic products. The international IT services business posted an increase of 24 per cent in revenues on year-on-year basis to Rs 81.82 crore as against Rs 66.06 in the same quarter last year.

“We have made significant investments in this business in terms of expanding the sales team, investment in sales and marketing developing new technology and practice areas such as mobility and cloud,” Managing Director and Chief Executive Srikar Reddy said.

In the domestic products business, it reported a 55 per cent growth in revenues and a growth in profit after tax at Rs 3.1 crore.

“Primary reason for the swing is improvement in the overall quality of our business and realignment of our product portfolio. Focus in this business will be to improve profitability while maintaining effective return on capital employed,” he said.

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