Oracle Financial Services drops after Q4 results

Oracle Financial Services Software lost 1.51% to Rs 2868.75 at 9:59 IST on BSE after consolidated net profit rose 10% to Rs 311 crore on 2% growth in revenue to Rs 895 crore in Q4 March 2014 over Q4 March 2013.

The Q4 result was announced after market hours on Friday, 16 May 2014.

Meanwhile, the S&P BSE Sensex was up 146.49 points or 0.61% at 24,268.23.

On BSE, so far 102 shares were traded in the counter as against average daily volume of 3,854 shares in the past one quarter.

The stock hit a high of Rs 2,900 and a low of Rs 2,868.75 so far during the day. The stock had hit a record high of Rs 3,415 on 2 January 2014. The stock had hit a 52-week low of Rs 2,350 on 22 May 2013.

The stock had underperformed the market over the past one month till 16 May 2014, sliding 7.21% compared with the Sensex's 8.28% rise. The scrip had also underperformed the market in past one quarter, declining 5.62% as against Sensex's 18.44% rise.

The large-cap company has equity capital of Rs 42.07 crore. Face value per share is Rs 5.

Oracle Financial Services Software's consolidated net profit rose 26% to Rs 1359 crore on 8% growth in revenue to Rs 3741 crore in the year ended March 2014 (FY 2014) over the year ended March 2013 (FY 2013). Operating income rose 15% to Rs 1328 crore in FY 2014 over FY 2013.

The revenue and operating income from the products business was Rs 2900 crore, up 11% and Rs 1256 crore, up 18% respectively, while the revenue and operating income from the services business was Rs 740 crore, down 4% and Rs 152 crore, down 4%, respectively, in FY 2014 over FY 2013, Oracle Financial Services Software said in a statement.

Chet Kamat, managing director and chief executive officer for Oracle Financial Services Software, said, "We signed US$ 14.7 million of new license fees in the quarter; while we have a strong pipeline, new license fees for the year were down 18%. We are investing in the sales and marketing infrastructure and processes to grow our core banking and analytics deal flow".

Makarand Padalkar, chief financial officer for Oracle Financial Services Software, said, "We posted another solid operating performance with the operating margins for the year at 35%, a 2 percentage point improvement over operating margin in the fiscal year ended March 2013. Our focus on operational excellence has delivered strong operating metrics; the days of sales outstanding at the end of March 2014 were at 61 days as compared to 68 days at the end of March 2013".

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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