Nucleus Software Exports (531209) Q4 03/04 earnings summary

Executive summary

• FY04 consolidated revenue was Rs 8,009.07 lacs, down 9.85% YoY amid delays in product-order finalization; PAT rose 16% to Rs 972.59 lacs.

• Cost rationalization lifted consolidated PBIDT margin to 19.04% from 18.03%; several product orders closed in Q4, supporting a positive FY05 outlook.

Financial highlights

• Consolidated operating expenses fell 11% to Rs 6,484.16 lacs; PAT margin increased to 12.14% from 9.47% YoY.

• Operating cash flow rose to Rs 23.42 crore from Rs 12.25 crore; cash, bank balances and current investments reached Rs 43.41 crore at March 31, 2004.

• EPS increased to Rs 12.23 from Rs 10.63; proposed dividend rose to Rs 2.50 per share from Rs 2.00.

Outlook and guidance

• Outlook for FY05 was cautiously optimistic; Q4 product-order closures and ongoing BFSI technology demand supported growth prospects.

• Three products planned for international launch: BankONet, Fraud Management System and Customer Acquisition System.

• Headcount planned to increase by 200 by end-2004, taking total staff to 900.