‘AI presents strong opportunity for IT industry, Q3 going to be good quarter’

AI is a key element in all the deals that the company is currently working on with various customers. 

Published: 27th October 2023 08:09 AM  |   Last Updated: 27th October 2023 08:09 AM   |  A+A-


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Express News Service

BENGALURU:  Artificial Intelligence presents a strong opportunity for the IT industry, and Sonata Software is riding high on this wave. “Our AI focus and responsible-first proprietary AI platform, Harmoni.ai, will help our customers to leverage the benefits of AI and optimize their overall digital transformation cost,” Jagannathan Chakravarthi, CFO at Sonata Software, told this newspaper.

AI is a key element in all the deals that the company is currently working on with various customers. In future, it expects 25% of its revenue to come from AI. The US inflation continues to be high and the macroeconomic headwinds may continue for a couple of more quarters, but this situation may also open up new opportunities for IT services companies from a transformation and efficiency deal perspective, he said.

The CFO of IT services and technology solutions company also said while the impact due to macroeconomics is more broad-based, hi-tech and healthcare sectors are a little soft, in comparison to other sectors. The company reported a 10% year-on-year (YoY) growth in its consolidated profit after tax for the second quarter at Rs 124.2 crore and revenues at Rs 1,912.6 crore, YoY growth of 28%.

For Sonata, key sectors that are driving growth include BFSI, retail & manufacturing, TMT (technology, media and telecom) and healthcare & lifesciences. “We will continue to maintain EBITDA before forex and other income at lower 20s,” he said. Chakravarthi said they will continue to focus on operational efficiencies to carve out investment for future growth.

“In our domestic business, Q2 is always a little soft. This is a seasonal trend. We are confident of having a good Q3,” he added. “Market is doing well, albeit correction in last one week. Enabled by AI and newer technologies, IT industry bundles huge potential in terms of serving our clients through next decade and beyond, leading to greater value creation for our shareholders and positive business outcomes,” the CFO said.

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