Nucleus Software Exports (531209) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 was described as a reasonable quarter, with management expressing optimism for future quarters and highlighting ongoing benefits from the Hoshin Kanri initiative focused on operational improvements and customer value delivery.

• Audited standalone and unaudited consolidated financial results for the quarter and nine months ended December 31, 2024, were approved by the Board and reviewed by the Audit Committee.

• Statutory auditors expressed unmodified opinions on both standalone and consolidated results.

Financial highlights

• Consolidated revenue for the quarter was INR 205.7 crore (₹20,570 lakh), up from INR 202.2 crore sequentially and INR 204.1 crore year-over-year; total income was ₹22,127 lakh.

• Product revenue was INR 174.8 crore, and projects/services revenue was INR 30.9 crore.

• EBITDA stood at INR 33 crore, compared to INR 31.5 crore last quarter and INR 47.4 crore a year ago.

• Net profit was INR 35 crore (₹3,328 lakh), up from INR 33.1 crore sequentially but down from INR 41.3 crore year-over-year; nine-month profit was ₹9,487 lakh.

• EPS for the quarter was INR 13.28 (consolidated, basic); for nine months, ₹36.90.

Segment performance

• India remains the largest revenue contributor, followed by Far East and South East Asia; segment profit before tax for India was ₹6,622 lakh for the quarter, while South East Asia showed a loss.

• Revenue from the top five clients contributed 28.1% of total revenue, nearly flat sequentially.

• Product segment continues to dominate, with over 90% of the INR 700 crore order book attributed to products.

• Transaction banking product FinnAxia is gaining traction, with recent successful implementations and a focus on digital payments and cross-border solutions.

• Geographical profitability outside India remains volatile due to sales and account management bandwidth, but management expects stabilization.