Oracle Financial Services Q4 Review - TTM Licence Up 17%, Adj. For SaaS Lic Up 36%; Drags OPM: Dolat Capital
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Dolat Capital Report
Oracle Financial Services Software Ltd. reported results below our estimate with revenue growth of 5% YoY at Rs 12.7 billion (our estimate: Rs 13.9 billion) owing to deferment of revenue recognition due to large software-as-a-service based deal signings, which also resulted in operating profit margin declined by ~500 basis points YoY to 41.7%.
Profit after tax stood at Rs 4.8 billion (our estimate: Rs 5.2 billion).
During Q4 Oracle Financial Services has signed new licenses worth $29.5 million but large part of these were in SaaS model and thus could recognise only $16.5 million as part of profit and loss during Q4 (implies 17% growth on trailing twelve months basis) below our estimate of $27 million as it signed 21 new deals across markets and product offerings and also witnessed nine customers went-live in the quarter.
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