Nucleus Software Q2 net dips 10% to Rs 9 cr

Banking software solutions provider Nucleus Software today reported a 9.91 per cent decline in net profit at Rs 8.90 crore for the quarter ended September 30, 2010, against Rs 9.88 crore for the same period a year ago.

Consolidated revenue stood at Rs 70.19 crore from software products and software development services as against Rs 70.75 crore in the corresponding quarter last year.

"Last year, we had a highly profitable services assignment, but there were no such similar assignments this quarter and hence our profits are down a bit," Vishnu R Dusad, CEO and managing director, Nucleus Software said.

However, there is a strong growth momentum building up and the numbers would pick up in the coming quarters, he added. The company is also looking at hiring 100-200 people over the next two quarters to fuel the growth.

"As of September 30, 2010, we had 1,562 people on our payrolls. We would look at hiring another 100-200 people in the coming two quarters," he said.

For the second quarter ended September 30, the company received 15 new orders and added nine new customers.

"This quarter, we added nine new customers and bagged 15 new orders in the second quarter of FY11 from leading financial institutions in India, Middle East, Africa, South East Asia and Japan," Dusad said.

This region has immense potential in terms of growth in the banking sector as institutions, both large and small, are increasingly realising the importance of technology in enhancing businesses, he added.