Poor Performance Continues in Nucleus Software
Hopefully recovers soon
Con-call Highlights –
Nucleus Software Q1 FY 2024-25 Earnings Call Key Takeaways
Financial Performance:
- Consolidated revenue: Rs. 195.4 crore
- Consolidated EBIDTA: Rs. 28.8 crore
- Consolidated PAT: Rs. 30.2 crore
- Consolidated EPS: Rs. 11.3
- Standalone revenue: Rs. 181.7 crore
- Standalone PAT: Rs. 31.2 crore
- Standalone EPS: Rs. 11.6
- Order book: Rs. 813.4 crore
- Cash and cash equivalent as of June 30, 2024: Rs. 920.8 crore
Operational Performance:
- Added 62 employees during the quarter
- Revenue mix: 58% domestic, 42% international
- No customer losses due to repricing initiatives
- Repricing progress slower than anticipated
- New customer acquisition yielded no revenue in the last quarter
- Long lead times for new implementations due to pricing complexity
Future Outlook:
- Management expressed confidence in bouncing back financially in coming quarters – Continued focus on product licensing and cloud-based services
- Plans to onboard sales leaders in different regions
Concerns:
- Decline in topline and bottom line performance
- Stagnant revenue growth
- Repricing initiative facing challenges
Other Important Points:
- Long-term focus over short-term fluctuations
- Committed to retaining top industry talent
- Exploring dividend payout and buyback options
- New product developments include an Islamic version of FinnOne Neo for the Middle East and Malaysia
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