Nucleus Software Exports (531209) Q4 97/98 earnings summary

Executive summary

• FY ended 30 Jun 1998 was pressured by the Southeast Asian currency crisis, disrupting markets that had accounted for nearly all business since 1990; gross revenue and operating profit declined YoY.

• New business in India and other international markets included American Express Bank, HDFC Bank, State Bank of Mauritius, and clients in the US and Canada.

Financial highlights

• Gross revenue was Rs 539.83 lakh vs Rs 559.40 lakh in FY 1996-97; operating profit (PBIDT) was Rs 52.92 lakh vs Rs 56.34 lakh.

• PBT was Rs 5.36 lakh vs Rs 21.50 lakh; the balance sheet abstract reports EPS of Rs 0.16 for FY 1997-98.

• Income from operations was Rs 535.86 lakh and other income Rs 3.97 lakh; total income was Rs 539.83 lakh.

Outlook and guidance

• SEI-CMM Level 3 certification was targeted for 1999, with plans to pursue Six Sigma quality standards thereafter.

• The financial year-end shifted from June to March; the transition year was scheduled to end 31 Mar 1999, followed by April-March financial years.

• FINNESS was planned for extension into insurance, building on the information kiosk developed for New India Assurance.