The share price of this fundamentally strong IT company in India was up by 3 percent on Friday after Reporting a Net profit increase of 39 percent.
Share Price Movement
In Friday’s trading session, Oracle Financial Services Software’s share price was up by 2.71 percent trading at Rs. 10,983.95 per share from the previous close of Rs.10,694.05 per share. The share price touched the day’s high of Rs. 11,148.75 apiece and in the past year, the stock has given 177.60 percent.
What Happened
The stock surge was driven by the good results in revenue and net profits reported by Oracle Financial Services Software Ltd for the recent quarter.
In its latest filing for the quarter ending September 2024, the company announced a 15.92 percent rise in revenue, reaching Rs.1,674 crore compared to Rs.1,444 crore in Q2 FY24. On a quarter-over-quarter basis, the operational revenue fell by 3.84 percent from Rs.1,741 crore in Q1FY25.
During the same period, net profit increased by 38.60 percent to Rs.578 crore in Q2 FY25, compared to Rs.417 crore in Q2 FY24, and down by 6.32 percent from Rs.617 crore in Q1 FY25.
Regarding return ratios, return on capital employed (ROCE) currently stands at around 39.50 percent, whereas return on equity (ROE) is at 29 percent. The stock is trading at a P/E (Price to Earnings) ratio of around 38.2. The company also has a strong current ratio of 5.74 and little or no debt in its books. The attrition levels stood at 10 percent in Q2FY25.
License & Cloud fees contribute around 12 percent, Maintenance Fees contribute 34 percent and Consulting Fees contribute 54 percent in Q2FY25. Geographically, India contributed around 9 percent, USA – 26 percent, Rest of America – 13 percent, Europe – 14 percent, Asia Pacific – 19 percent, and Middle East and Africa – 19 percent in Q2FY25 which includes products as well as service businesses.
Also read…
Q2FY25 Business updates
A leading U.S. bank renewed its deal with Oracle for Financial services analytical applications cloud services. A Canadian bank affirmed its commitment to Oracle’s banking technology. An established American bank enhanced its financial operations using Oracle’s Profitability Management applications.
In the UK, a prominent bank has increased its collaboration with Oracle, while another Italian bank has signed a deal for the same services. Gulf Bank in Kuwait completed a comprehensive digital transformation with Oracle, to improve its core banking system.
Additionally, NBS Bank in Malawi has upgraded to Oracle Banking applications, improving its digital and operational capabilities.
Company Profile
Oracle Financial Services Software Ltd, headquartered in Mumbai, India, provides innovative financial technology solutions. The company specializes in software for retail, corporate, and investment banking, along with consulting and outsourcing services. As a subsidiary of Oracle Corporation, it supports over 900 clients globally, enhancing their operational efficiency and compliance.
Written by – Santhosh S
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