On consolidated basis
Quarter ended March 2024 compared with Quarter ended December 2023.
Net sales (including other operating income) of Oracle Financial Services
Software has declined 9.94% to Rs 1642.44 crore.
Operating profit margin has declined
from 47.63% to 44.71%, leading to 15.46% decline in operating profit to Rs
734.33 crore. Employee cost increased from 41.70% to 46.12%.
Other expenses fell from 10.67% to 9.17%. Selling and
administration expenses fell from 7.64% to 5.58%. Other direct
service cost rose from 3.03% to 3.59%.
Other income fell 12.15% to Rs 82.53
crore. PBIDT fell 15.13% to Rs 816.86 crore. Provision
for interest rose 47.92% to Rs 13.86 crore. Loan funds remained
nil.
PBDT fell 15.75% to Rs 803
crore. Provision for depreciation fell 6.58% to Rs 17.76
crore.
Profit before tax down 15.94% to Rs
785.24 crore. Share of profit/loss were nil in both the
periods. Provision for tax was expense of Rs 225.12 crore, compared
to Rs 193.33 crore. Effective tax rate was 28.67% compared to
20.70%.
Minority interest was nil in both
the periods. Net profit attributable to owners of the company
decreased 24.39% to Rs 560.12 crore.
Promoters’ stake was 72.75% as of 31
March 2024 ,compared to 72.78% as of 31 December 2023 .
Quarter ended March 2024 compared
with Quarter ended March 2023.
Net sales (including other operating income) of Oracle Financial Services
Software has increased 11.69% to Rs 1642.44 crore. Sales of Product
license & related activitie segment has gone up 11.55% to Rs 1,490.93 crore
(accounting for 90.78% of total sales). Sales of IT Solutions &
Consulting services segment has gone up 13.07% to Rs 151.50 crore (accounting
for 9.22% of total sales).
Profit before interest, tax and
other unallocable items (PBIT) has jumped 14.67% to Rs 761.80
crore. PBIT of Product license & related activitie segment rose
13.12% to Rs 717.59 crore (accounting for 94.20% of total
PBIT). PBIT of IT Solutions & Consulting services segment rose
47.46% to Rs 44.21 crore (accounting for 5.80% of total PBIT).
PBIT margin of Product license &
related activitie segment rose from 47.46% to 48.13%. PBIT margin of
IT Solutions & Consulting services segment rose from 22.38% to
29.18%. Overall PBIT margin rose from 45.18% to 46.38%.
Operating profit margin has jumped
from 44.26% to 44.71%, leading to 12.83% rise in operating profit to Rs 734.33
crore. Employee cost decreased from 48.04% to 46.12%.
Other expenses rose from 7.70% to 9.17%. Selling and
administration expenses rose from 5.11% to 5.58%. Other direct
service cost rose from 2.59% to 3.59%.
Other income rose 34.70% to Rs 82.53
crore. PBIDT rose 14.71% to Rs 816.86 crore. Provision
for interest rose 80.70% to Rs 13.86 crore. Loan funds declined from
Rs 69.40 crore as of 31 March 2023 to Rs 42.96 crore as of 31 March
2024. Sundry debtors were higher at Rs 1,319.31 crore as of 31 March
2024 compared to Rs 1,083.37 crore as of 31 March 2023. Cash and
bank balance rose to Rs 5,538.19 crore as of 31 March 2024 from Rs 5,469.74
crore as of 31 March 2023.
PBDT rose 13.99% to Rs 803
crore. Provision for depreciation fell 4.98% to Rs 17.76
crore. Fixed assets declined from Rs 238.72 crore as of 31 March
2023 to Rs 199.16 crore as of 31 March 2024. Intangible assets stood
at Rs 608.66 crore.
Profit before tax grew 14.51% to Rs
785.24 crore. Share of profit/loss were nil in both the
periods. Provision for tax was expense of Rs 225.12 crore, compared
to Rs 206.46 crore. Effective tax rate was 28.67% compared to
30.11%.
Minority interest was nil in both
the periods. Net profit attributable to owners of the company
increased 16.86% to Rs 560.12 crore.
Equity capital increased from Rs
43.20 crore as of 31 March 2023 to Rs 43.34 crore as of 31 March
2024. Per share face Value remained same at Rs 5.00.
Promoters’ stake was 72.75% as of 31
March 2024 ,compared to 72.98% as of 31 March 2023 .
Full year results analysis.
Net sales (including other operating income) of Oracle Financial Services
Software has increased 11.84% to Rs 6372.96 crore. Sales of Product
license & related activitie segment has gone up 12.77% to Rs 5,786.20 crore
(accounting for 90.79% of total sales). Sales of IT Solutions &
Consulting services segment has gone up 3.41% to Rs 586.76 crore (accounting
for 9.21% of total sales).
Profit before interest, tax and
other unallocable items (PBIT) has jumped 12.85% to Rs 2,908.63
crore. PBIT of Product license & related activitie segment rose
12.27% to Rs 2,747.40 crore (accounting for 94.46% of total
PBIT). PBIT of IT Solutions & Consulting services segment rose
23.65% to Rs 161.24 crore (accounting for 5.54% of total PBIT).
PBIT margin of Product license &
related activitie segment fell from 47.69% to 47.48%. PBIT margin of
IT Solutions & Consulting services segment rose from 22.98% to
27.48%. Overall PBIT margin rose from 45.23% to 45.64%.
Operating profit margin has jumped
from 43.37% to 43.66%, leading to 12.59% rise in operating profit to Rs
2,782.51 crore. Employee cost decreased from 48.68% to 46.80%.
Other expenses rose from 7.95% to 9.53%. Selling and
administration expenses rose from 5.29% to 6.05%. Other direct
service cost rose from 2.66% to 3.49%.
Other income rose 78.37% to Rs
342.19 crore. PBIDT rose 17.33% to Rs 3124.7
crore. Provision for interest rose 122.04% to Rs 28.11
crore. Loan funds declined from Rs 69.40 crore as of 31 March 2023
to Rs 42.96 crore as of 31 March 2024. Sundry debtors were higher at
Rs 1,319.31 crore as of 31 March 2024 compared to Rs 1,083.37 crore as of 31
March 2023. Cash and bank balance rose to Rs 5,538.19 crore as of 31
March 2024 from Rs 5,469.74 crore as of 31 March 2023.
PBDT rose 16.83% to Rs 3096.59 crore. Provision
for depreciation fell 7.93% to Rs 74.26 crore. Fixed assets declined
from Rs 238.72 crore as of 31 March 2023 to Rs 199.16 crore as of 31 March
2024. Intangible assets stood at Rs 608.66 crore.
Profit before tax grew 17.60% to Rs
3,022.33 crore. Share of profit/loss were nil in both the
periods. Provision for tax was expense of Rs 802.97 crore, compared
to Rs 763.76 crore. Effective tax rate was 26.57% compared to
29.72%.
Minority interest was nil in both
the periods. Net profit attributable to owners of the company
increased 22.88% to Rs 2,219.36 crore.
Equity capital increased from Rs
43.20 crore as of 31 March 2023 to Rs 43.34 crore as of 31 March
2024. Per share face Value remained same at Rs 5.00.
Promoters’ stake was 72.75% as of 31
March 2024 ,compared to 72.98% as of 31 March 2023 .
Cash flow from operating activities
increased to Rs 1,790.67 crore for year ended March 2024 from Rs 1,758.42 crore
for year ended March 2023. Cash flow used in acquiring fixed assets
during the year ended March 2024 stood at Rs 30.11 crore, compared to Rs 38.13
crore during the year ended March 2023.
Dividend: The
Board of directors approved an Interim Dividend for the financial year 2023-24
of Rs. 240/- per equity share of face value of Rs. 5/- each.
Management Comment:
Commenting on the performance, Makarand Padalkar,
Managing Director and Chief Executive Officer, Oracle Financial Services
Software said, “We are very pleased to report double-digit growth in revenues,
operating income, and net income for the fiscal year
ended March 31, 2024. This was a result of our winning portfolio of products
and services focused on the financial services industry. During the fiscal year
2024, we signed license fees of US$ 137.3 million across our entire range of
products registering 43.7% growth over license fee signings in fiscal year
2023. The robust growth of our cloud offering pipeline drove the strength of
cloud bookings this fiscal year, and we expect to see continued strength in our
cloud offering pipeline. With customer preference shifting toward cloud
services, our revenue mix is shifting more toward recurring revenue services,
including cloud services, and less for transactional revenue, including signed
license fees which were US$ 19.9 million for the quarter ended March 31,
2024.
We successfully delivered a number of complex and
challenging product implementations across various regions, demonstrating the
richness and quality of our offerings. Our strong financial performance this
fiscal year reflects the continued importance of our product offerings to
global financial institutions, supporting them in their innovation and transformation
business objectives.”
Avadhut Ketkar, Chief Financial Officer, Oracle
Financial Services Software said “For
the quarter, our revenue increased by 12% and net income grew by 17% on
year-over-year basis. We continued to deliver robust financial performance by
offering industry leading products and services to the financial services
industry. For the quarter ended March 31, 2024, our operating margin was 43%
and net margin was 34%. For the year ended March 31, 2024, we posted operating
margin of 42% and net margin of 35%.”
| Oracle Financial Services Software : Consolidated Results | | | Quarter ended | Year ended |
|---|
| Particulars | 202403 | 202303 | Var.(%) | 202403 | 202303 | Var.(%) |
|---|
| Net Sales (including other operating income) | 1,642.44 | 1,470.52 | 11.69 | 6,372.96 | 5,698.31 | 11.84 | | OPM (%) | 44.71 | 44.26 | 45 bps | 43.66 | 43.37 | 29 bps | | OP | 734.33 | 650.85 | 12.83 | 2,782.51 | 2,471.38 | 12.59 | | Other Inc. | 82.53 | 61.27 | 34.70 | 342.19 | 191.84 | 78.37 | | PBIDT | 816.86 | 712.12 | 14.71 | 3,124.70 | 2,663.22 | 17.33 | | Interest | 13.86 | 7.67 | 80.70 | 28.11 | 12.66 | 122.04 | | PBDT | 803.00 | 704.45 | 13.99 | 3,096.59 | 2,650.56 | 16.83 | | Depreciation | 17.76 | 18.69 | -4.98 | 74.26 | 80.66 | -7.93 | | PBT | 785.24 | 685.76 | 14.51 | 3022.33 | 2569.9 | 17.60 | | Share of Profit/(Loss) from Associates | 0 | 0 | - | 0 | 0 | - | | PBT before EO | 785.24 | 685.76 | 14.51 | 3022.33 | 2569.9 | 17.60 | | EO Income | 0 | 0 | - | 0 | 0 | - | | PBT after EO | 785.24 | 685.76 | 14.51 | 3022.33 | 2569.9 | 17.60 | | Taxation | 225.12 | 206.46 | 9.04 | 802.97 | 763.76 | 5.13 | | PAT | 560.12 | 479.3 | 16.86 | 2219.36 | 1806.14 | 22.88 | | Minority Interest (MI) | 0 | 0 | - | 0 | 0 | - | | Net profit | 560.12 | 479.3 | 16.86 | 2219.36 | 1806.14 | 22.88 | | P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | | Net profit after discontinued operations | 560.12 | 479.3 | 16.86 | 2219.36 | 1806.14 | 22.88 | | EPS (Rs)* | 64.62 | 55.30 | 16.86 | 256.05 | 208.37 | 22.88 | | | * EPS is on current equity of Rs 43.34 crore, Face value of Rs 5, Excluding extraordinary items. | | # EPS is not annualised | | bps : Basis points | | EO : Extraordinary items | | Figures in Rs crore | | Source: Capitaline Corporate Database |
|
| Oracle Financial Services Software : Consolidated Segment Results | | | Quarter ended | Year ended |
|---|
| % of (Total) | 202403 | 202303 | Var.(%) | % of (Total) | 202403 | 202303 | Var.(%) |
|---|
| Sales | | Product license & related activitie | 90.78 | 1,490.93 | 1,336.54 | 11.55 | 90.79 | 5,786.20 | 5,130.90 | 12.77 | | IT Solutions & Consulting services | 9.22 | 151.50 | 133.99 | 13.07 | 9.21 | 586.76 | 567.41 | 3.41 | | KPO-Services | 0.00 | 0.00 | 0.00 | - | | Joint Venture | 0.00 | 0.00 | 0.00 | - | | Corporate | 0.00 | 0.00 | 0.00 | - | | BPO-Services | 0.00 | 0.00 | 0.00 | - | | Total Reported Sales | 100.00 | 1,642.44 | 1,470.52 | 11.69 | 100.00 | 6,372.96 | 5,698.31 | 11.84 | | Less: Inter segment revenues | | 0.00 | 0.00 | - | | 0.00 | 0.00 | - | | Net Sales | 100.00 | 1,642.44 | 1,470.52 | 11.69 | 100.00 | 6,372.96 | 5,698.31 | 11.84 | | PBIT | | Product license & related activitie | 94.20 | 717.59 | 634.36 | 13.12 | 94.46 | 2,747.40 | 2,447.10 | 12.27 | | IT Solutions & Consulting services | 5.80 | 44.21 | 29.98 | 47.46 | 5.54 | 161.24 | 130.40 | 23.65 | | KPO-Services | 0.00 | 0.00 | 0.00 | - | | Joint Venture | 0.00 | 0.00 | 0.00 | - | | Corporate | 0.00 | 0.00 | 0.00 | - | | BPO-Services | 0.00 | 0.00 | 0.00 | - | | Total PBIT | 100.00 | 761.80 | 664.34 | 14.67 | 100.00 | 2,908.63 | 2,577.50 | 12.85 | | Less : Interest | | -74.71 | -61.74 | -21.01 | | -331.67 | -167.28 | -98.27 | | Add: Other un-allcoable | | -51.26 | -40.31 | -27.17 | | -217.97 | -174.88 | -24.64 | | PBIT Margin(%) | | Product license & related activitie | | 48.13 | 47.46 | 66.73 | | 47.48 | 47.69 | -21.14 | | IT Solutions & Consulting services | | 29.18 | 22.38 | 680.45 | | 27.48 | 22.98 | 449.70 | | KPO-Services | | 0.00 | 0.00 | 0.00 | | Joint Venture | | 0.00 | 0.00 | 0.00 | | Corporate | | 0.00 | 0.00 | 0.00 | | BPO-Services | | 0.00 | 0.00 | 0.00 | | PBT | 100.00 | 785.24 | 685.77 | 14.51 | 100.00 | 3,022.34 | 2,569.90 | 17.60 |
|
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