Oracle Financial Services - Q2 Miss, Adverse Seasonality Apparent In Muted License: Dolat Capital

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.Oracle Financial Services Software Ltd. reported revenue growth of 16% YoY in Rs terms at Rs 16.7 billion (our estimate: at Rs 17.3 billion, 19.6% growth). Revenue miss was due to weaker than expected license signings at $22 million (our estimate: $25 million). However, Ebit margin improved to 43.8% (our estimate: 43.1%), up 645 bps YoY attributed to cost control and improved operational efficiencies. Cloud and License revenues for Q2 stood at ~$22 million and were down 33% QoQ but up 37% on trailing twelve months basis. Headcount saw an addition of 167 resources to support implementation traction. Cloud deals continue to drive the new win momentum & thus to avoid ambiguity the company has stopped disclosing licence signing data in Q2.We believe healthy license win momentum would ensure double digit growth in FY25 and any further large deal wins would add comfort on visibility beyond that. Given the consistent performance and positive outlook we have upgraded our rating to ‘Accumulate’ with DCF-based target price of Rs 11,420 (implies ~32 times FY27E PER)..Click on the attachment to read the full report:.Cyient Q2 Results Review - Decent Quarter, But Uncertainties Remain: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Oracle Financial Services - Q2 Miss, Adverse Seasonality Apparent In Muted License: Dolat Capital

Given the consistent performance and positive outlook the brokerage has upgraded its rating to ‘Accumulate’.

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Oracle Financial Services - Q2 Miss, Adverse Seasonality Apparent In Muted License: Dolat Capital

Given the consistent performance and positive outlook the brokerage has upgraded its rating to ‘Accumulate’.

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