ADVERTISEMENT

Oracle Financial Services Q2 Results Review - Revenue Miss, Strong Hiring Keeps Hope Intact: Dolat Capital

Revenue miss was on account of weak licence signings at $13.1 million led by slower deal decision making/signings.

<div class="paragraphs"><p>A female working on a laptop. (Photo:Dai-Ke-Gkra /Unsplash)</p></div>
A female working on a laptop. (Photo:Dai-Ke-Gkra /Unsplash)

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

Dolat Capital Report

Oracle Financial Services Software Ltd. reported revenue growth of 7% YoY in Indian rupee terms at Rs 13.7 billion (our estimate at Rs 14.2 billion).

Revenue miss was on account of weak licence signings at $13.1 million led by slower deal decision making/signings. Operating profit margin stood at 39% for the quarter (our estimate: 45%) owing to weak licence bookings and sustained strong hiring in the quarter – net added ~600 resources as it is building capacity to meet rising implementation revenue run rate (imp rev up 8% QoQ and % YoY).

Despite lower than expected performance we believe Oracle Financial Services’ delivery continues to trend on improved track as evident from strong hiring and thus expect improved financial performance on TMF basis.

We believe the current run rate still suggest possibility of better revenue growth performance in FY23E and gradual recovery in profitability in H2.

Click on the attachment to read the full report:

Dolat Capital Oracle Financial Services Software Q2FY23 Result Update.pdf

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.