Nucleus Software Exports (531209) Q4 00/01 earnings summary

Executive summary

• Consolidated revenue reached Rs.3,572.70 lacs and PAT from ordinary activities Rs.937.23 lacs; YoY growth was 107.30% in revenue and 256.87% in ordinary net profit on an annualised comparison.

• Products contributed 20% of revenue, with more than 30 live customer sites; 18 of 20 new clients were large corporations.

• FY 2000-01 covered April-March after a fiscal-year change; the prior comparison period was nine months, and management used an annualised prior-year basis in its analysis.

Financial highlights

• Standalone revenue was Rs.2,724.13 lacs and PAT Rs.963.54 lacs; reported growth was 133.33% and 677.36%, respectively, on an annualised basis versus the prior nine-month period.

• Standalone software services and products income was Rs.2,702.82 lacs; operating profit (PBIDT) Rs.1,294.65 lacs, PBT Rs.1,023.54 lacs and PAT Rs.963.54 lacs.

• Standalone export income rose to Rs.2,080.97 lacs, up 242.62% annualised; exports represented 76.99% of operating revenue.

• Consolidated exports were Rs.2,916.03 lacs; consolidated operating profit Rs.1,310.96 lacs and PAT from ordinary activities Rs.937.23 lacs.

Outlook and guidance

• FY 2001-02 identified as a year of strategic change, with continued product-line investment and stronger alignment to customer needs.

• Management expected improved U.S. subsidiary revenue and profitability in FY 2001-02 after its first-year loss.

• Planned expansion included Japan subsidiary formation and support or branch offices in the U.K., Australia and South East Asia.

• Noida infrastructure project covered 20,000 sq. m.; first phase designed for 800-1,000 people, with completion targeted by March 31, 2002; construction timing was also described as rescheduled for 2002.

• Management was strengthening SEI CMM Level 3 processes and investing in improved forecasting and MIS capabilities.