Nucleus Software Exports (531209) Q4 01/02 earnings summary

Executive summary

• FY02 consolidated revenue rose 74% to Rs 6,229.18 lacs; PAT increased 12.9% to Rs 1,084.01 lacs amid a turbulent operating environment.

• Product-led banking and financial services focus, international expansion and a Rs 62 crore order book supported expectations for further growth in FY03.

Financial highlights

• Consolidated operating profit (PBIDT) was Rs 1,599.56 lacs, versus Rs 1,310.04 lacs; PAT from ordinary activities was Rs 975.98 lacs, versus Rs 937.23 lacs.

• Standalone revenue from operations grew 49.58% to Rs 4,042.91 lacs; standalone PAT rose to Rs 1,019.92 lacs from Rs 963.54 lacs.

• Standalone export income increased 51.14% to Rs 3,145.28 lacs and represented 75.80% of revenue from operations.

• Personnel expenses rose 124% YoY as headcount increased from 471 to 611; operating expenses grew 86.34% standalone, reflecting continued product development and capacity investment.

Outlook and guidance

• Order book stood at Rs 62 crore as of May 21, 2002, for delivery in FY03, exceeding FY02 billings; management expected the order pipeline to add to turnover.

• Management was cautiously optimistic on FY03 growth; planned heavy fixed-asset investment and first-phase work at the Noida facility was expected to begin later in 2002.

• CMM Level 5 certification was targeted by March 2003, following Level 3 certification in December 2001.