Shares of Oracle Financial Services Software Ltd (OFSS) surged more than 30 per cent during the trading session on Thursday, bucking the selling pressure and hitting new 52-week highs, after the company announced a strong performance in the December 2023 quarter. IT firm Oracle Financial Services Software reported a 69.4 per cent year-on-year (YoY) jump in net profit at Rs 740.8 crore for the third quarter that ended December 31, 2023. The company had clocked a net profit of Rs 437.3 crore in the same quarter previous year. OFSS reported a 26 per cent growth in the revenue from operations in the December 2023 quarter to Rs 1823.6 crore as against Rs 1449.2 crore in the corresponding period of the preceding fiscal. The operating income for the quarter was Rs 840 crore, up 45 per cent year-over-year. Following the announcement, shares of Oracle Financial Services Software rallied more than to 30 per cent to Rs 6,613.60 on Thursday, hitting its new 52-week mark, and commanding a total market capitalization of close to 56,600 crore. The scrip had previously settled at Rs 5,087.40 on Wednesday. Margins of OFSS came in strong for the quarter ended on December 31, 2023 as it clocked an operating margin at 46.1 per cent and net margin at 40.6 per cent. Its margins stood at around 37 per cent about a year ago. The company signed license fees of $49.5 million during the quarter with customers in 37 countries. 19 customers went live on OFSS products during the quarter. Shares of OFSS have rallied about 42 per cent since the beginning of this year, while the stock is up 55 per cent in the last six months. The stock has gained about 95 per cent in the last one year, while it has gained about 105 per cent from its 52-week low at Rs 2,987.40 hit on February 1, 2023. "The results demonstrate our strength in all aspects. For the quarter, we posted strong growth in revenue and profits. Our license fees signings were $49.5 million across our product lines for both Cloud/SaaS and on-premises deployment modes," said Makarand Padalkar, Managing Director and Chief Executive Officer at Oracle Financial Services Software. "We signed a landmark cloud deal with Navy Federal Credit Union, USA during the previous quarter, and we continue to see a robust deal pipeline across all the regions as we continue to serve the market with our product portfolio," he added. Oracle Financial provides products and services to the financial services industry and is a majority owned subsidiary of Texas-based Oracle Corporation. The company provides services to capital markets, banking, wealth management, corporate banking, payments, retail banking, and risk and compliance domains.
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