Oracle Financial Services Software (532466) Q4 00/01 earnings summary

Executive summary

• FY2000-01 total revenue rose 56% to Rs 3,211.21m; profit after tax increased 59% to Rs 1,100.22m.

• Customer base reached 281 financial institutions across 74 countries; exports generated 95% of operating revenue.

• Product and services mix remained balanced, with products contributing 54% and services 46% of operating revenue.

Financial highlights

• Earnings before tax increased 56% to Rs 1,128.21m from Rs 721.00m; profit after tax was Rs 1,100.22m versus Rs 692.73m.

• EPS was Rs 66.13 versus Rs 41.63, with EPS and book value computed on the current equity base after the 1:1 bonus issue.

• Other income rose 43% to Rs 125.33m; interest income on bank deposits increased 76%, and return on average deployable funds was 7.60% versus 5.01%.

• Cash and bank balances increased 70% to Rs 1,472.95m; cash and cash equivalents were Rs 776.46m, with deposits of Rs 696.49m.

Outlook and guidance

• Management was optimistic that global demand for financial-services products and services would remain strong, citing IT as a competitive advantage for financial institutions.

• Growth strategy focused on deeper penetration in existing markets and expansion in new markets, including the US, Europe, Japan, Latin America and ASPAC.

• The HDFC joint venture was expected to begin offering FLEXCUBE through a pay-for-use ASP model in FY2001-02; further investment was planned for that year.