Oracle Financial Services Software reports 17% rise in Q4 PAT at ₹560 crore, stock down nearly 3%
Upstox
2 min read • Updated: April 25, 2024, 11:54 AM
Summary
Oracle Financial Services Software’s products business revenue rose 12% YoY to ₹1,491 crore, and operating profit rose 13% to ₹718 crore. The services business revenue increased 13% YoY to ₹151 crore and its operating profit rose 47% to ₹44 crore. Operating margin for the quarter stood at 43% while net margin stood at 34%.
Oracle Financial Services Software, a majority-owned subsidiary of Oracle, on Tuesday announced a 12% year-on-year (YoY) rise in its consolidated revenue for the fourth quarter at ₹1,642 crore.
Operating profit for the quarter rose 13% YoY at ₹703 crore while net profit rose 17% to ₹560 crore.
After the earnings report was out, Oracle Financial's stock edged lower at the stock markets. The shares reached the day's low of ₹7,141.95 on the NSE, down nearly 3% as against the previous day's close.
For the fourth quarter, the company's products business revenue rose 12% YoY to ₹1,491 crore, and operating profit rose 13% to ₹718 crore. The services business revenue increased 13% YoY to ₹151 crore and its operating profit rose 47% to ₹44 crore. Operating margin for the quarter stood at 43% while net margin stood at 34%.
For the fiscal year 2024, Oracle Financial Services posted a 12% increase in its revenue to ₹6,373 crore. Operating profit rose 13% YoY to ₹2,680 crore while net profit rose 23% to ₹2,219 crore. The company posted an operating margin of 42% and a net margin of 35% for FY24.
Makarand Padalkar, Managing Director and Chief Executive Officer at Oracle Financial Services Software said during the fiscal year 2024, the company signed license fees of $137.3 million across its entire range of products, registering a 43.7% YoY growth. “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,” he said.
Padalkar also pointed out that with customer preference shifting toward cloud services, the company’s revenue mix is shifting more toward recurring revenue services, including cloud services, and less for transactional revenue, including signed license fees which were $19.9 million for the quarter-ended March 31, 2024.
The board of directors of the company declared an interim dividend of ₹240 per equity share for the fiscal year.
Shares of the company have gained over 67% since the beginning of the year. The stock has risen over 112% in the last one year.