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Oracle Financial Services Software slips as promoter to sell stake

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Capital Market
Last Updated : May 08 2013 | 10:30 AM IST

The announcement was made after trading hours on Tuesday, 7 May 2013.

Meanwhile, the BSE Sensex was up 91.55 points, or 0.46%, to 19,980.50.

On BSE, 16,000 shares were traded in the counter as against an average daily volume of 6,008 shares in the past one quarter.

The stock hit a high of Rs 2,661 and a low of Rs 2,535.55 so far during the day. The stock had hit a record high of Rs 3,414 on 10 January 2013. The stock had hit a 52-week low of Rs 2,360 on 21 May 2012.

The stock had underperformed the market over the past one month till 7 May 2013, rising 2.11% compared with the Sensex's 7.80% rise. The scrip had also underperformed the market in past one quarter, sliding 12.90% as against Sensex's 1.58% rise.

The large-cap IT company has an equity capital of Rs 42.03 crore. Face value per share is Rs 5.

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Oracle Financial Services Software said it has received a letter from the promoter notifying the company about their intention to reduce their shareholding in the company by 5.3%, to comply with the minimum public shareholding requirements, Oracle Financial Services Software said in a filing.

As on 31 March 2013, promoters held 80.27% in Oracle Financial Services Software. As per the norms stipulated by the market regulator Securities and Exchange Board of India (Sebi), privately promoted companies are expected to have public shareholding at 25% by 3 June 2013.

Meanwhile, Oracle Financial Services Software announced its Q4 March 2013 results after trading hours on Tuesday, 7 May 2013.

On a consolidated basis, the company's net profit jumped 45% to Rs 281.30 crore on 2% increase in total revenue to Rs 881.50 crore in Q4 March 2013 over Q4 March 2012. Operating income declined 6% to 314.30 crore in Q4 March 2013 over Q4 March 2012.

Consolidated net profit rose 18.24% to Rs 1075.14 crore on 10.23% increase in total income to Rs 3933.54 crore in the year ended March 2013 over the year ended March 2012. Operating income rose 8% to 1153.60 crore in the year ended March 2013 over the year ended March 2012.

Chet Kamat, managing director and chief executive officer for Oracle Financial Services Software said, "We delivered strong growth in the licence revenue of 24%. The license signing momentum in the quarter was solid and we booked new license of Rs 119.40 crore. The customer wins represent a wide spectrum of usage and in particular we are pleased with significant customers wins across EMEA, North America and Asia."

Makarand Padalkar, chief financial officer for Oracle Financial Services Software, said, "We delivered a robust operating margin of 33% for the full year. Our focus on operational execellence has delivered strong operating metrics; the days of sales outstanding were at 68 days, cash flow from operations in the year was 46% higher as compared to the last year; gross employee attrition was well under control at around 15%. With this, we delivered a net margin of 31% for the full year which was two percentage points higher than last fiscal year."

Oracle Financial Services Software is a world leader in providing products and services to the financial services industry and is a majority-owned subsidiary of Oracle Corporation.

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First Published: May 08 2013 | 10:05 AM IST

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