 "Nucleus Software looks to up local hiring in key markets")
The Noida-based company, which has presence in 10 countries including some as complex as Japan, has so far managed with a predominantly Indian workforce, However, by the end of 2014, the company will have a strong local workforce in most of its markets, said Managing Director and Chief Executive Officer Vishnu R. Dusad.
"This been at the back of our minds over the last decade, but for one reason or the other it did not happen," Dusad told Business Standard. "But now we are pushing it and we are seeing results also in the feedback form customers. We are essentially attempting to make sure that we communicate the value of our Intellectual Property to the potential buyers through people who understand their own culture."
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Nucleus Software gets most of its revenue from Japan, South-East Asia, West Asia and India. It also has presence in US, Europe, Africa and Latin America, which are relatively smaller markets for the company. The company is prepared to bear the increase in costs that local hires may lead to, Dusad said.
"I don't think cost is an issue really, because the moment you have a local person talking about you, the value that the buyer can see in you is of a different nature," he said. "So even as the costs will rise, we are confident that our strategy will make up for it."
On the financial front, Dusad believes that even as Nucleus Software has performed well over the last few quarters, it is still "slightly behind what was planned". For FY14, the consolidated net profit of the company grew over 40% to Rs 64.3 crore, while its net sales increased nearly 18% to Rs 346.2 crore.
During Q4, the company saw a 80% on-year rise in consolidated net profit at Rs 18.8 crore, while its net sales rose nearly 20% to Rs 87.69 crore. On a sequential basis, however, net profit and net sales were lower by 20% and 2.5%, respectively.
This is the second consecutive quarter of robust year-on-year net profit growth, as Nucleus Software had posted a near doubling of consolidated net profit at Rs 23.38 crore in September-December 2013 (Q3).
Reacting to the strong performance of Q3, since January, the shares of Nucleus Software have appreciated nearly 50% on the National Stock Exchange. On Monday, however, the stock was down around 8% due to the quarter-on-quarter decline in earnings for Q4.
Australia foray
Nucleus Software has won a 'large' sized order in Australia, making it the company's first contract win in the region, Dusad said, without sharing any further details on the same. The company had earlier this year set up a subsidiary in Australia, through which the order will be executed.
"Till recently we used to think that when it comes to the developed part of the world, they would have all the functionalities that are required, so we will have to upgrade substantially to cater to their needs,: Dusad said. "But going by the example of Australia, we feel our capabilities might be slightly ahead of their requirements. This is not just for Australia but even for other parts of the developed world like Japan and even US."
The contract won in Australia is for the company's flagship product-FinOne, Dusad said. He added that there are several other contracts in the pipeline in Australis, which might take some time to materialise, but the company is fairly confident about this geography.