- Consolidated Revenue: INR205.7 crores for the quarter, compared to INR202.2 crores quarter-on-quarter and INR204.1 crores year-on-year.
- Revenue in Foreign Currency: USD 24.4 million for the quarter, compared to USD 24.1 million quarter-on-quarter and USD 25.1 million year-on-year.
- Product Revenue: INR174.8 crores for the quarter, compared to INR171.4 crores quarter-on-quarter and INR175.4 crores year-on-year.
- Revenue from Projects and Services: INR30.9 crores for the quarter, compared to INR30.8 crores quarter-on-quarter and INR28.8 crores year-on-year.
- Cost of Delivery: 70.7% of revenue, compared to 71.4% quarter-on-quarter and 61.8% year-on-year.
- Marketing and Sales Expenses: 5.6% of revenue, compared to 4.5% quarter-on-quarter and 6% year-on-year.
- G&A Expenses: 7.6% of revenue, compared to 8.5% quarter-on-quarter and 8.9% year-on-year.
- EBITDA: INR33 crore for the quarter, compared to INR31.5 crores quarter-on-quarter and INR47.4 crores year-on-year.
- Other Income: INR15.6 crore for the quarter, compared to INR19 crore quarter-on-quarter and INR12 crore year-on-year.
- Net Profit: INR35 crores for the quarter, compared to INR33.1 crores quarter-on-quarter and INR41.3 crores year-on-year.
- Total Comprehensive Income: INR33.3 crores for the quarter, compared to INR30.4 crores quarter-on-quarter and INR42.9 crores year-on-year.
- EPS: INR13.28 for the quarter, compared to INR12.35 quarter-on-quarter and INR15.43 year-on-year.
- Total Cash and Cash Equivalents: INR877.9 crores as of December 31, compared to INR895.1 crores as of September 30.
- Revenue Contribution from Top Five Clients: 28.1% for the quarter, compared to 28.2% in the previous quarter.
Release Date: January 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Nucleus Software Exports Ltd (BOM:531209, Financial) reported a slight increase in consolidated revenue for the quarter, reaching INR205.7 crores compared to INR202.2 crores in the previous quarter.
- The company is observing initial benefits from the Hoshin Kanri initiative, which is expected to drive significant product gains in future quarters.
- Product revenue for the quarter increased to INR174.8 crores from INR171.4 crores quarter-on-quarter.
- The company has a substantial order book of INR700 crores to be executed over the next three to five years.
- Nucleus Software Exports Ltd (BOM:531209) is focusing on AI and digital transformation, which is expected to enhance customer efficiency and decision-making capabilities.
Negative Points
- Net profit for the quarter decreased to INR35 crores from INR41.3 crores year-on-year.
- The company experienced a reduction in employee count from 1,938 in September 2024 to 1,903 by December 2024.
- Marketing and sales expenses increased to 5.6% of revenue from 4.5% quarter-on-quarter.
- The company faces challenges with longer customer decision cycles, impacting revenue growth.
- Despite optimism, the company does not provide specific revenue guidance, creating uncertainty about future financial performance.
Q & A Highlights
Q: Could you provide the order book number and the employee count for the recent quarters?
A: Surya Prakash Kanodia, Chief Financial Officer, stated that the order book stands at approximately INR700 crores. The employee count was 1,938 at the end of September 2024, which decreased to 1,903 by December 2024.
Q: How many new customers were added in the last quarter, and what is the traction like for the upcoming quarters?
A: Ashish Khanna, Chief Marketing Officer, mentioned that while the sales cycle is longer, there is significant traction in digital transformation, especially in regions like Southeast Asia, the Middle East, and Australia. However, specific numbers for new customers were not provided as they are still in the closing stages.
Q: Can you elaborate on the growth of your key products over the past nine months and the order book outlook?
A: Ashish Khanna explained that both FinnAxia and FinnOne products have seen positive traction, with existing customers appreciating new features. The company is optimistic about future growth, driven by industry events and interest from large players looking to transform from legacy systems.
Q: How has the price increase in key products been received by customers, and what is the order book execution timeline?
A: Vishnu Dusad, Managing Director, noted that customers have been understanding of the price increase due to previously discounted rates. The order book is expected to be executed over a three to five-year period.
Q: What are the initiatives mentioned in the opening remarks, and what benefits are expected?
A: Vishnu Dusad highlighted the adoption of lean management practices aimed at improving productivity and reducing wastage. While immediate financial benefits are not yet quantifiable, the company is optimistic about long-term improvements in operational efficiency.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
