Oracle Financial Services Q4 PAT down 41% QoQ to Rs 269 cr

Oracle Financial Services Software (OFSS)'s consolidated net profit fell 41.05% to Rs 269.22 crore on 8.91% increase in net sales to Rs 1,263.54 crore in Q4 March 2020 over Q3 December 2019.

Consolidated profit before tax (PBT) fell 4.22% to Rs 535.37 crore in Q4 March 2020 as against Rs 558.97 crore in Q3 December 2019. Total tax expenses surged 160.38% at Rs 266.14 crore in Q4 March 2020 as against Rs 102.21 crore paid in Q3 December 2019. The results were announced post trading hours yesterday, 14 May 2020.

The company's net profit rose 5.51% to Rs 1,462.22 crore on 1.97% decline in net sales to Rs 4,861.28 crore in the year ended March 2020 (FY20) over the year ended March 2019 (FY19).

During the quarter, Oracle Financial Services Software signed license deals worth $23 million with customers in 33 countries. 13 customers went live on Oracle Financial Services Software products during the quarter. The firm has declared an interim dividend of Rs 180 per equity share of Rs 5 each on 8 May 2020. However, the board has not recommended any final dividend for the financial year ended 31 March 2020.

Speaking on the Q4 earnings, Chet Kamat, the managing director (MD) and chief executive officer (CEO) of Oracle Financial Services Software, has commented that, "We are pleased to report a solid quarter, which included more than a month of impact of COVID-19. We signed $23 million of new licenses in the quarter, 12% higher year-over-year. For the full year, the net income rose 6% with net margins at 30%.

I am very proud that our robust infrastructure, processes, and most importantly our people, have ensured that we continue to deliver the commitments with minimal disruptions caused by the global COVID-19 pandemic. We have been proactive to respond to these challenges and were early to switch to work from home globally without impacting customer deliverables.

The COVID-19 pandemic is resulting in a series of government interventions around the globe to help alleviate the economic distress, and we have seamlessly helped our customers to meet these challenges. Our processes enable us to deliver our support, services and software, anytime anywhere.

While we experienced, and may continue to experience, some delays in new deal signings, especially from regions with 'in-person' cultures for Board Meetings and financial institutions conserving budgets in the face of cost pressures, our value proposition remains very relevant, and even more so when the economic recovery begins," he added.

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.

Shares of OFSS gained 1.53% to Rs 2,610 on BSE. The scrip hovered in the range of Rs 2,559.30 to Rs 2,630 so far.

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