Shares of this large-cap stock associated with the Information Technology (IT) sector jumped approximately 21 percent in Thursday’s trading session after the company announced financial results for Q3FY23-24, i.e., for the quarter ended December 2023.
With a market capitalization of Rs 53,055.14 crores, the stocks of Oracle Financial Services Software Limited started their trading session on Thursday at Rs 5,596.10 and currently trade at Rs 6123.95, gaining a whopping 21 percent compared to the previous closing levels of Rs 5,087.40 apiece.
Such a sudden spike in the company’s share price were witnessed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), announced its financial results for the quarter ended December 2023.
On a sequential basis, the company reported an increase in its prime business indicators, viz, revenue from operations as well as after-tax profits.
The former rose from Rs 1,444 crores during Q2FY23-24 to Rs 1,824 crores during Q3FY23-24, and the latter, keeping the timeframe the same, took a shift from Rs 417 crores to Rs 741 crores exhibiting an increase of around 78 percent.
In addition to the above, the company, on a yearly basis too, reported an increase in the abovementioned metrics with the operating revenues shifting up from Rs 1,449 crores during Q3FY22-23 to Rs 1,824 crores during Q3FY23-24, and the bottom-line numbers, during the same horizon, moving up from Rs 437 crores to Rs 741 crores.
Historically, the company, despite increased cost pressure annually, was able to maintain healthy margins and profitability ratios in FY22-23. The net profit margin (NPM) was reported at 30.79 percent, return on equity (RoE) at 24.21 percent, and return on capital employed (RoCE) at 31.56 percent.
As per the latest shareholding data for the December 2023 quarter, the company’s Promoters hold a 72.78 percent stake, and the Foreign Institutional Investors (FIIs) hold a 6.89 percent stake in the company.
Oracle Financial Services Software Limited is a company based in India that provides computer systems, software systems, and other consulting services. Its flagship “Flexcube”
offerings include investor servicing, universal banking, private banking, mobile banking, etc. The firm also offers business process outsourcing (BPO) and other services.
Written by Amit Madnani
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