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Oracle Financial Services gains after stellar Q1 earnings

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Capital Market
Last Updated : Aug 03 2013 | 8:05 AM IST

Oracle Financial Services Software rose 1.65% to Rs 2,671 at 9:18 IST on BSE after consolidated net profit jumped 90.33% to Rs 368.10 crore on 9.71% growth in revenue to Rs 946.33 crore in Q1 June 2012 over Q4 March 2012.

The company announced the results after market hours on Thursday, 2 August 2012.

Meanwhile, the BSE Sensex was down 78.64 points or 0.46% to 17,145.72.

On BSE, 2,545 shares were traded in the counter as against average daily volume of 4,343 shares in the past one quarter.

The stock hit a high of Rs 2,675 and a low of Rs 2,624.90 so far during the day. The stock had hit a record high of Rs 2,765.90 on 12 April 2012. The stock had hit a 52-week low of Rs 1,699 on 22 August 2011.

The stock had outperformed the market over the past one month till 2 August 2012, rising 2.58% compared with the Sensex's 1% fall. The scrip had also outperformed the market in past one quarter, gaining 1.23% as against Sensex's 0.45% fall.

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The large-cap software firm has equity capital of Rs 41.99 crore. Face value per share is Rs 5.

Commenting on the first quarter performance, Chet Kamat, Managing Director and Chief Executive Officer, Oracle Financial Services Software said, "Our product revenues grew 48% over the corresponding quarter year-over-year driven by our strong execution and new strategic customer wins. We signed $19 million new license fees posting an increase of 46% over the license fee signed in the corresponding quarter. This performance is a testimonial to the breadth of our product capability and our success with customers across regions both directly and through our partner eco-systems".

Commenting on the Q1 results, Makarand Padalkar, Chief Financial Officer, Oracle Financial Services Software said, "In the tough and uncertain market environment, we maintained strong discipline and delivered robust operating performance on all parameters. The operating margin for the quarter was 39% registering an eight percentage point increase. Strong collection helped ensure the days of sales outstanding (DSO) reduce to 76 days at the end of the quarter".

Oracle Financial Services makes software products and services for the financial services industry. US computer technology major Oracle Corporation holds 80.36% stake in Oracle Financial Services Software (as per the shareholding pattern as on 30 June 2012).

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First Published: Aug 03 2012 | 9:19 AM IST

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