Nucleus Software Exports (531209) Q2 24/25 earnings summary

Executive summary

• Revenue for the quarter reached INR 202.2 crores, showing a slight sequential increase but a marginal year-on-year decline.

• Net profit for the quarter was INR 33.1 crores, up quarter-on-quarter but down from INR 44.6 crores year-on-year.

• Audited standalone and unaudited consolidated financial results for the quarter and half year ended September 30, 2024, were approved by the Board and reviewed by the Audit Committee.

• Statutory auditors expressed an unmodified opinion on standalone results and a clean review conclusion on consolidated results.

• The company is progressing with its Hoshin Kanri lean initiative, aiming for long-term operational improvements and enhanced customer experience.

Financial highlights

• Consolidated revenue: INR 202.2 crores (Q2 FY25) vs. INR 195.4 crores (Q1 FY25) and INR 205.3 crores (Q2 FY24).

• EBITDA: INR 31.5 crores, up from INR 28.8 crores sequentially, but down from INR 51.7 crores year-on-year.

• Net profit: INR 33.1 crores, up from INR 30.2 crores sequentially, down from INR 44.6 crores year-on-year.

• EPS: INR 12.35, up from INR 11.28 sequentially, down from INR 16.65 year-on-year.

• Order book: INR 720.5 crores as of September 30, 2024, down from INR 813.4 crores at June 30, 2024.

Outlook and guidance

• Management expects long-term benefits from the Hoshin Kanri initiative, targeting improved profitability, margins, and customer experience.

• The sales pipeline remains strong, but order conversion cycles have lengthened significantly, with decisions now taking up to twice as long.

• The Board approved a final dividend of ₹12.50 per share for FY24, paid in July 2024.

• Buyback of 448,018 equity shares at ₹1,615 per share was completed in September 2024.

• No specific revenue or earnings guidance provided.