Shares of this fintech company engaged in lending and transaction banking products surged by 6 percent after announcing a partnership with Bank Muscat to transform collections through the innovative FinnOne Neo platform.
Price Action
In Tuesday’s trading session, Nucleus Software Exports Ltd’s share price reached an intra-day high of Rs.1,168.00 per share, rising 6.1 percent from its previous close of Rs.1,100.05 apiece. Over the past five years, the stock delivered over 300 percent returns.
What happened
Nucleus Software has partnered with Bank Muscat to implement FinnOne Neo® Collections, a digital platform aimed at improving collections operations. The system enhances delinquency management through proactive monitoring and early detection of potential issues.
It also supports Bank Muscat’s “Change the Bank” initiative by streamlining collections processes and boosting operational efficiency. This shift to FinnOne Neo® is part of a long-term collaboration between the two companies, focusing on reducing overdue loans, minimizing credit losses, and improving profitability.
Products and Services
Nucleus Software provides a comprehensive range of products and services, including FinnOne Neo, a leading lending solution that manages $500 billion in loans in India and $700 billion globally. Their FinnAxia platform supports transaction banking services such as cash management, mobile, and internet banking.
The company also offers business analytics to help financial institutions enhance decision-making and professional services, including consulting, application development, training, and managed infrastructure.
Management Commentary
Mr. Ashwani Arora, Senior Vice President of Nucleus Software, stated, “We are excited to partner with Bank Muscat on this pivotal project. FinnOne Neo® Collections is designed to address the dynamic needs of modern banking, and its successful implementation showcases our commitment to driving digital transformation in the sensitive area of collections.
This platform is more than just a tool; it’s a comprehensive solution that enhances operational efficiency and customer engagement. Together, we are setting a new standard for collections processes in the Middle East and Africa region, paving the way for others to follow.”
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Financials
In its latest filing, Nucleus Software Exports Ltd reported a 2 percent decline in revenue, totaling Rs.202 crore in Q2 FY25, compared to Rs.205 crore in Q2 FY24. The company’s net profit also dropped by 27 percent, falling to Rs.33 crore in Q2 FY25 from Rs.45 crore in Q2 FY24.
Important Ratios
In terms of return ratios, return on capital employed (ROCE) stands at 32.0 percent, while return on equity (ROE) is at 24.0 percent. The company also features a strong current ratio of 1.24 and a nil debt-to-equity ratio.
Company Overview
Nucleus Software Exports Limited is a leading provider of lending and transaction banking solutions for the global financial services industry. Its software supports over 200 financial institutions in 50 countries, covering retail and corporate banking, cash management, internet banking, automotive finance, and more.
Written by – Siddesh S Raskar
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