Last Updated on October 28, 2023 by BFSLTeam BFSLTeam
On October 17, 2023: Oracle Financial Services Software Limited (BSE, NSE: OFSS) announced its Q2 2023-24 financial results, displaying promising results as far as Revenue growth and Net Income go.
Table of Content
Q2 Result Highlights
The following are the Q2 2023-24 business result highlights of OFSS:
- Revenue for Q2 was up by 5% YoY, standing at ₹1,445 crore.
- Net Income for Q2 stood at ₹417 crore, a rise of 5% YoY.
- For Q2, Operating Income was ₹531 crore, a decrease of 2% YoY.
- For the second quarter of 2023-24, the Products side of the business had a revenue of ₹1,298 crore, an increase of 6% YoY. In the same segment of Products, the operating income posted was at ₹553 crore, equally the same as that of Q2 of the last fiscal year.
- The Services component of the company has posted a revenue of ₹147 crore, which is a drop of 2% YoY. The operating income of the same segment is at ₹33 crore which is down by 17% YoY.
Additional Read: Q2 Results Dashboard
Key Management Commentary
The new MD and CEO of Oracle Financial Services Software, Makarand Padalkar, commented on the result, focusing on the following features:
- The new MD and CEO expressed his delight at getting an opportunity to lead a company such as Oracle Financial Services Software and take it further on its growth journey.
- In Q2, the company had robust licence wins that were boosted through major cloud wins.
- Across the portfolio of the company, key subsequent deals are in the offing for the future.
Additionally, the company’s new CFO, Avadhut Ketkar, had some more comments that revolved around the following:
- The new CFO expressed his delight in joining the company.
- The company has been successful at sustaining consistent performance in Q2 with a Net Margin of 28.9% and an Operating Margin of 36.8%.
- The Accounts Receivable are sound with DSO (Days of Sales Outstanding) amounting to 61 days.
Additional Read: Oracle Financial Services Software Share Price
Business Achievements – Oracle Financial
In Q2, the company experienced significant achievements such as:
- Oracle Financial Services Software signed licence fees of $40.5 million in Q2, comprising customers from 26 nations.
- 11 clients went live on the software products of the company.
- The privately-held technology-based financial company, Westlake Financial, extended its existing corporate relationship with OFSS.
- Symbiotic Investments SA, Geneva has selected Oracle Banking Cloud Services for Treasury Management and Corporate Lending.
- Among enterprises that have chosen to opt for the implementation of Oracle Bank Cloud Services is a substantial credit union.
- A Chile-based company that operates car loan, leasing, credit, and asset management services, among others, has opted for the implementation of Oracle Financial Services’ applications (in supply chain financing) to boost its fintech portfolio.
- A famous bank in the USA has continued its investment in Oracle Banking technology and has sealed a deal for Oracle Financial Services Analytical Applications.
- An FDB (Farmers Development Bank), Mandalay Bank in Myanmar, has opted to have Oracle as its technology partner of choice while it commences its digital banking process.
- Notable partnerships and collaborations with banks in Nigeria, Egypt, and Bangladesh have put Oracle’s services at the forefront of its industry, resulting in what is hoped to be a future for the growth of the company while aiding other companies to excel in their businesses.
Key Financial Results
The following table shows key parameters and metrics portraying the QoQ and YoY (%) details of Oracle Financial Services Software (amounts except for percentages are in INR million):
| Metrics | Q2 FY 2023-24 | Q2 FY 2023-24 Percentage of Revenue | Q2 FY 2022-23 | Q2 FY 2022-23 Percentage of Revenue | Percentage Increase(Decrease) |
| Total Revenue | 14,445 | 100% | 13,760 | 100% | 5% |
| Total Segment Results | 5,858 | 41% | 5,922 | 43% | (1%) |
| Operating Income | 5,311 | 37% | 5,399 | 39% | (2%) |
| Income Before the Provision of Tax | 5,962 | 41% | 5,855 | 43% | 2% |
| Net Income | 4,174 | 29% | 3,978 | 29% | 5% |
About Oracle Financial Services Software Limited
Oracle Financial Services Software Limited (OFSS) is an India-based company, a subsidiary of Oracle, involved in the business of the provision of business processing and information technology solutions services to the financial industry, mainly the financial services industry. The segments of the organisation comprise Product licences and activities related to these (the “Products”) and information technology-centric solutions and services that include consulting (the “Services”). The segment that deals with Products includes a variety of banking software products and linked activities, which comprise implementation, maintenance, and enhancement activities. The segment of Services offers services that span the entire application lifecycle used by financial service enterprises or institutions.
In its financial services banking product portfolio, you will discover Oracle FLEXCUBE Universal Banking, Oracle FLEXCUBE Investor Servicing, Oracle FLEXCUBE for Islamic Banking, Oracle Banking Platform, Oracle Banking Origination, Oracle Banking Branch, Oracle Financial Services Lending and Leasing, Oracle Banking Cash Management, and Oracle Banking Accounts. With its vast experience in delivering value-focused IT solutions to financial institutions on a global scale, OFSS has a robust international reach, boasting a presence in several overseas locations across more than a hundred countries.
Source:
https://investor.ofss.oracle.com/home/default.aspx
https://www.bseindia.com/corporates/anndet_new.aspx?newsid=f5251fa2-1583-4a9a-9653-1b00bed6de1e
