Oracle Financial Services shares hit 25% upper circuit on strong Q3

Shares of  Oracle Financial Services Software Ltd surged as much as 25% to hit an all-time high of ₹6,359.25 apiece on the BSE today, bolstered by better-than-expected financial results in the December quarter of FY24. The company reported a 69.4% increase in its net profit to ₹740.8 crore in the September period of FY24, as against ₹437.3 crore in the same period last year.

"Our margins were strong this quarter with the operating margin at 46.1% and net margin at 40.6%. For the nine months ended December 31, 2023, we posted a 13% increase in the operating income and a 25% increase in the net income compared to the corresponding period of the last financial year," says Avadhut Ketkar, chief financial officer, Oracle Financial Services Software.

Early today, the scrip opened higher at ₹5596.10, up 9.9%, as against the previous closing price of ₹5,087.40. At 1:04 pm, the company’s share price was trading 20.99% higher at ₹6,155.15. In contrast to this, the broader BSE Sensex was trading 328.70 points or 0.46% lower at 71,172.06.

The stock hit a 52-week low of ₹2,987.40 on February 1 last year. The company’s market capitalisation stood at ₹53,372.22 crore with more than 1.2 lakh shares exchanging hands on the BSE, as against the two-week average of 0.16 lakh shares.

In the past one month, three months and one year, the counter has given 41.06%, 49.69% and 98.20% in returns, respectively. In the year-to-date period, the counter has given 42.33% in returns.

During the quarter under review, the company revenue from operations witnessed a growth of 26% to ₹1,823.6 crore, as against ₹1,449.3 crore in the same period last year. The company’s operating income stood at ₹840.2 crore, up 46%.

 “Our license fees signings were $49.5 million across our product lines for both Cloud/SaaS and on-premises deployment modes. For the nine months ended December 2023, our license signings were US$ 117.4 million, 76% higher than the corresponding period last fiscal. We signed a landmark cloud deal with Navy Federal Credit Union, USA during the previous quarter, and we continue to see a robust deal pipeline across all the regions as we continue to serve the market with our product portfolio,” says Makarand Padalkar, MD & CEO,  Oracle Financial Services Software Ltd.

Meanwhile, the IT services software company also announced the allotment of ESOP of 6,281 equity shares of face value of Rs. 5/- each. “With this allotment, the paid-up capital of the company has increased to Rs. 433,208,820/- divided into 86,641,764 equity shares of the face value of Rs. 5/- each,” the company says in a statement.