Oracle Financial Services drops after weak Q1 numbers

Oracle Financial Services Software lost 2.02% to Rs 2,897.20 at 10:30 IST on BSE after consolidated net profit fell 1% to Rs 366 crore on 5% decline in revenue to Rs 899 crore in Q1 June 2013 over Q1 June 2012.

The Q1 result was announced after market hours on Tuesday, 13 August 2013.

Meanwhile, the S&P BSE Sensex was up 45.73 points or 0.24% to Rs 19,275.57.

On BSE, 20,993 shares were traded in the counter as against average daily volume of 39,088 shares in the past one quarter.

The stock lost as much as 5.13% at the day's low of Rs 2,805 so far during the day. The stock hit a high of Rs 2,926.25 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 2,350 on 22 May 2013.

The stock had outperformed the market over the past one month till 13 August 2013, surging 7.29% compared with the Sensex's 3.65% fall. The scrip had also outperformed the market in past one quarter, jumping 15.9% as against Sensex's 2.35% fall.

The large-cap company has equity capital of Rs 42.04 crore. Face value per share is Rs 5.

Oracle Financial Services Software's (OFSS) consolidated operating profit declined 14% to Rs 320 crore in Q1 June 2013 over Q1 June 2012.

The products business posted revenue of Rs 687 crore and operating margins of 42%, while the services business posted revenue of Rs 191 crore and operating margins of 25% in Q1 June 2013.

OFSS' consolidated net profit surged 30% to Rs 366 crore on 2% growth in revenue to Rs 899 crore in Q1 June 2013 over Q4 March 2013. Operating profit rose 2% to Rs 320 crore in Q1 June 2013 over Q4 March 2013.

Chet Kamat, Managing Director and CEO, Oracle Financial Services Software, said, "We continued to maintain the winning momentum in various regions across the world signing $18 million in new license fees in the quarter. All our lines of business posted strong operating performance. This performance is a testimonial to the breadth of our product capability sustained through focussed investments to grow our addressable market."

Makarand Padalkar, CFO, Oracle Financial Services Software, said, "In a challenging environment, we delivered robust performance with net margins at 41% registering a nine percentage point increase since the last quarter."

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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