Oracle Financial Services Software, a majority-owned subsidiary of Oracle, experienced a significant surge of 20%, reaching a new all-time high at ₹6,103.40 per share in today’s trading session. This surge was a direct response to the company’s robust performance in Q3 FY24.
The company reported a remarkable 69% increase in its consolidated net profit to ₹741 crore in the latest quarter. In comparison, the net profit for the same period last year was ₹437 crore, and in the preceding September quarter (Q2 FY24), it stood at ₹417 crore. The revenue from operations during the December quarter reached ₹1,824 crore, marking a 26% YoY increase. The operating profit for the quarter also showed substantial growth, reaching ₹869 crore, a 43% YoY increase.
Breaking down the revenue segments, the products business posted a revenue of ₹1,680 crore, showing a 29% YoY increase, while the services business posted a revenue of ₹144 crore, a slight 2% YoY decrease.
Oracle Financial Services Software signed license fees of $49.5 million during the quarter, involving customers from 37 countries. Additionally, 19 customers went live on Oracle Financial Services Software products in the same period.
In terms of performance for 9MFY24, the company’s consolidated net profit witnessed a 25% improvement, reaching ₹1,659 crore. Revenue from operations also rose to ₹4,730 crore, up from ₹4,227 crore in the same period last fiscal year.
Makarand Padalkar, Managing Director and Chief Executive Officer of Oracle Financial Services Software, commented on the Q3FY24 performance, stating, “The results demonstrate our strength in all aspects.
For the quarter, we posted strong growth in revenue and profits. Our license fee signings were US$ 49.5 million across our product lines for both cloud/SaaS and on-premises deployment modes.”
Padalkar highlighted a landmark cloud deal with Navy Federal Credit Union, USA, during the previous quarter, and the company continues to observe a robust deal pipeline across all regions.
The stock has recorded an impressive 41% gain in the last five trading sessions, contributing to a noteworthy January monthly gain of 47%, surpassing its entire 2023 calendar year return of 39.34%. The remarkable surge underlines investor confidence in the company’s financial performance and growth prospects.
