Oracle Financial Services Q3 Review - Results Miss, Healthy Licence Wins Restore Confidence: Dolat Capital

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 14% YoY in Indian rupee terms at Rs 14.5 billion (our estimate: at Rs 14.7 billion). Revenue miss was on account of lower working days impacting the implementation revenues (down 5% QoQ at Rs 6.6 billion). Operating profit margin stood at 40.4% for the quarter (our estimate: 41.4%) up 79 bps QoQ but the recovery was slower than expectation given sustained investments in talent costs – net added ~1000 resources on YoY basis (up 30 QoQ basis) as it is building capacity to meet rising implementation revenue opportunities (imp rev up 12% YoY on year-to-date basis).Despite the miss in Q3 performance we believe Oracle Financial Services’ delivery continues to trend on improved track as evident from strong hiring, healthy licence wins (up 7% YoY on trailing twelve months basis at $96 million). The current run rate suggest possibility of double digit growth in FY23E revenues (best in a decade) and gradual recovery in profitability over coming quarters..Click on the attachment to read the full report:.DISCLAIMERThis 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.

Oracle Financial Services Q3 Review - Results Miss, Healthy Licence Wins Restore Confidence: Dolat Capital

Operating profit margin stood at 40.4% for the quarter up 79 bps QoQ

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