Nucleus Software Exports (531209) Q4 04/05 earnings summary

Executive summary

• FY05 was a record year, with consolidated revenue topping Rs 100 crore for the first time and operating margin and profitability reaching new highs.

• FinnOne secured a major lending and collections rollout across 41 countries, while the client base grew by 18 to 97.

Financial highlights

• Consolidated revenue from operations was Rs 10,314.09 lacs, up 29% YoY; PBIDT was Rs 2,706.83 lacs, up 77%.

• Consolidated PAT rose 113% to Rs 2,074.97 lacs; EPS was Rs 12.90 versus Rs 6.12 in FY04, adjusted for the 1:1 bonus issue.

• Parent revenue increased 24% to Rs 6,703.23 lacs and PAT rose 53% to Rs 1,582.84 lacs.

• Consolidated gross margin was 42.11% versus 36.47% YoY; PBIDT margin rose to 26.24% from 19.04%.

Outlook and guidance

• Management was cautiously optimistic on FY06 growth; favorable conditions among major clients and expansion activity were creating opportunities for broader solutions.

• Product-related revenue was 26% of FY05 total revenue versus 33% in FY04; the share was expected to rise with large multi-country installations.

• Planned R&D investment was 10% of total revenue, with continued emphasis on new products and product development.

• The Noida campus could scale to 2,000 seats; expansion could be completed within a year without borrowing or restricting technology spending.