Nucleus Q1 net up 4% at Rs 11.65 cr

The firm had posted a net profit of Rs 11.17 crore in the year-ago period

IT services firm Nucleus Software today reported a marginal 4% rise in net profit at Rs 11.65 crore for the first quarter ended June 30, 2014.

The Noida-based firm had posted a net profit of Rs 11.17 crore in the year-ago period.

Revenue declined by 8% to Rs 79.43 crore in April-June of this fiscal from Rs 86.32 crore in the corresponding period of 2013-14 fiscal.

Reacting to the results, company's shares fell by 5.51% today to settle at Rs 192 apiece on the BSE.

Commenting on the firm's performance, Nucleus Software CEO Vishnu R Dusad said: "The revenue decline is due to shifting of some orders. There was also a delay in completing a major order, which we expect to do this quarter."

The third and fourth quarter will see better results as Nucleus's existing clients are also responding positively to its new solutions, he added.

Nucleus Software has also announced that its continued focus on strategic investments in R&D and product innovation will remain to be one of its top priorities in the coming quarters, Dusad said.

"With the launch of our lending suite, FinnOne Neo, we continue to focus on re-energising the existing product portfolio," he added.

Cash and cash equivalents, including investments in debt schemes of mutual funds, fixed deposits with banks and tax free PSU bonds stood at Rs 319.63 crore as on 30th June, 2014.

Nucleus also announced that its Board has appointed R P Singh as an additional and whole time director of the company with immediate effect.

In the first quarter, Nucleus Software completed a total of seven product module implementations across Middle East, India and Japan. The company won two product orders worldwide.

The global strength of employees at Nucleus Software as on June 30, 2014, stands at 1,488.