Nucleus Software Q2 results disappoint with poor revenue and net profit growth
Nucleus Software powers the operations of more than 200 Financial Institutions in over 50 countries.
Nucleus Software Exports Ltd is a software product company that provides lending and transaction banking products to global financial leaders. Nucleus Software powers the operations of more than 200 Financial Institutions in over 50 countries, supporting retail lending, corporate banking, cash management, mobile and internet banking, automotive finance and other business areas. Its products facilitate more than 26 million transactions each day, managing over USD 200 billion of loans and enabling more than 200,000 users to log in daily.
Consolidated revenue for the quarter Q2FY22 came in at Rs. 123.61 crore as against Rs. 146 crore in the corresponding quarter last year, registering a decline of 18.6 per cent on a YoY basis. However, there is QoQ growth of 3.36 per cent in revenue.
The operating profit for the quarter declined by 248 per cent on YoY to Rs 14 crore as against Rs 43 crore in the corresponding quarter last year, with a corresponding margin contraction of 2000 bps. EBITDA margin for the quarter stood at 8.86 per cent. This is due to an increase in employee benefit expenses.
The PAT for the quarter came in at Rs 8.58 crore as against Rs 29.5 crore in the corresponding quarter last year, YoY decline of 225 per cent, with a corresponding margin contraction of 1400 bps. PAT margin for the quarter stood at 7.20 per cent. However, there is QoQ growth of 41 per cent in net profit.
Q2 Strategic wins:
1. Opel Vauxhall Finance went live in Spain with Nucleus Software’s flagship lending product, FinnOne.
2. Nucleus Software’s FinnOne Neo to power South Indian Bank’s retail lending landscape.
3. Nucleus Software’s FinnOne Neo powers TPBank Vietnam’s TPFinance (TPFico) for digital consumer finance.
4. Bank of Sydney appoints Nucleus Software and their flagship lending solution FinnOne Neo to accelerate their digital lending transformation.
Share was trading at Rs 575, 1.51 per cent down for the day on November 15, 2021.