This Smallcap IT Stock Trades Ex-Dividend Today, Announces 700% Dividend; Key Details Here

Dividend Paying Stocks: Sonata Software Ltd shares are trading ex-dividend on the BSE in Monday’s trading session, a day ahead of the record date for its declared interim dividend that it had announced with its second-quarter earnings for the current fiscal or Q2 FY23.

“We wish to inform you that at the meeting of the Board of Directors of the company held on 18th October, 2022, declared an Interim Dividend of Rs. 7.00 per share (700 per cent on the par value of Rs. 1/-) for the financial year 2022-23. The record date for the purpose of payment of the Interim Dividend will be on Tuesday, 1st November, 2022,” the Indian IT company informed in an exchange filing on Wednesday.

A dividend means the distribution of surplus from the profits of a listed company to its shareholders. Sonata Software has a good dividend track record with a high dividend yield.

The Interim Dividend will be paid to the registered shareholders on or after Monday, 14th November, 2022 through electronic mode or by dividend warrants, as applicable.

“Pursuant to the amendments introduced in the Income Tax Act, 1961 (Act), vide Finance Act, 2020, w.e.f. April 1, 2020, the Company will be required to withhold taxes at the prescribed rates on dividend paid to the shareholders. Hence, the Interim Dividend declared shall be paid after deducting tax at source (‘TDS’) in accordance with the provisions of the Income Tax Act, 1961,” it added.

Sonata Software Ltd: Financials

For the quarter that ended September 2022, the company’s consolidated net profit came at Rs 112.7 crore, witnessing a year-on-year (YoY) growth of 24 per cent, on the back of its revenue growing 55 per cent from the year-ago quarter to Rs 1,496 crore.

Speaking on the results, Samir Dhir, CEO of Sonata Software said: “The results for the quarter reflect strong growth in our business across our operating markets. We have increased our nearshore delivery presence, most recently developing talent in Ireland, to reach best-in-class talent in every geography we service our clients.”

Sonata Software Limited is a global technology company and is a service provider in business intelligence and analytics, application development management, mobility, cloud, social media, enterprise services, and infrastructure management services among others. The IT stock is down more than 21 per cent in 2022 (YTD) so far, whereas it has declined 20 per cent in a year’s period.

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