In Thursday’s trading session, shares of Oracle Financial Services Software witnessed an impressive surge of 19.8%, reaching a new record high of Rs 6,098.50. The rally was fueled by robust revenue and profit growth reported for the December quarter (Q3FY24).
Surpassing its previous high of Rs 5,145 on October 19, 2021, the stock showcased resilience amidst a 0.72% decline in the S&P BSE Sensex, which stood at 70,987 at 10:32 AM.
Oracle Financial Services Software, a majority-owned subsidiary of Oracle Corporation, specializes in providing products and services to the financial services industry.
On a consolidated basis, Q3 revenue witnessed an impressive 26% YoY growth, amounting to Rs 1,824 crore. Net profit demonstrated a substantial jump of 69% to Rs 741 crore on a YoY basis. The quarter displayed strong margins, with the operating margin at 46.1% and net margin at 40.6%.
The company’s products business contributed significantly to the positive performance, recording a revenue of Rs 1,680 crore, marking a 29% YoY increase. Operating income in this segment reached Rs 867 crore, reflecting a substantial 41% YoY growth.
Oracle Financial Services Software reported license fees signings of $49.5 million across its product lines for both Cloud/SaaS and on-premises deployment modes. Notably, for the nine months ending December 2023, license signings stood at $117.4 million, indicating a remarkable 76% increase compared to the corresponding period in the previous fiscal.
The management highlighted a landmark cloud deal with Navy Federal Credit Union, USA, in the previous quarter and expressed confidence in a robust deal pipeline across all regions.
