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NUCLEUS SOFTWARE 2018-19 Annual Report Analysis
Sun, 31 Mar

NUCLEUS SOFTWARE has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

NUCLEUS SOFTWARE Income Statement Analysis

  • Operating income during the year rose 17.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 30.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.8% in FY19 as against 14.2% in FY18.
  • Depreciation charges increased by 41.1% increased by 0.0% YoY, respectively.
  • Other income grew by 4.7% YoY.
  • Net profit for the year grew by 19.2% YoY.
  • Net profit margins during the year grew from 15.2% in FY18 to 15.4% in FY19.

NUCLEUS SOFTWARE Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 4,118 4,840 17.5%
Other income Rs m 288 301 4.7%
Total Revenues Rs m 4,406 5,141 16.7%
Gross profit Rs m 587 766 30.7%
Depreciation Rs m 70 99 41.1%
Interest Rs m 5 5 0.0%
Profit before tax Rs m 799 963 20.6%
Tax Rs m 173 218 25.6%
Profit after tax Rs m 626 745 19.2%
Gross profit margin % 14.2 15.8
Effective tax rate % 21.7 22.6
Net profit margin % 15.2 15.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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NUCLEUS SOFTWARE Balance Sheet Analysis

  • The company's current liabilities during FY19 down at Rs 2 billion as compared to Rs 2 billion in FY18, thereby witnessing an decrease of -4.7%.
  • Current assets rose 13% and stood at Rs 4 billion, while fixed assets rose 0% and stood at Rs 3 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 7 billion as against Rs 6 billion during FY18, thereby witnessing a growth of 7%.

NUCLEUS SOFTWARE Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 4,613 5,086 10.2
 
Current Liabilities Rs m 1,769 1,686 -4.7
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 6,353 6,775 6.6
 
Current assets Rs m 3,172 3,593 13.3
Fixed Assets Rs m 3,181 3,182 0.0
Total Assets Rs m 6,353 6,775 6.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



NUCLEUS SOFTWARE Cash Flow Statement Analysis

  • NUCLEUS SOFTWARE's cash flow from operating activities (CFO) during FY19 stood at Rs 561 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -284 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -260 million, an improvement of 81% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 22 million from the Rs 27 million net cash flows seen during FY18.

NUCLEUS SOFTWARE Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 769 561 -27.1%
Cash Flow from Investing Activities Rs m 609 -284 -
Cash Flow from Financing Activities Rs m -1,347 -260 -
Net Cash Flow Rs m 27 22 -17.9%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for NUCLEUS SOFTWARE

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 25.7, an improvement from the EPS of Rs 21.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 338.9, stands at 12.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 2.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 14.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 141.8 166.7
TTM Earnings per share Rs 21.5 25.7
Diluted earnings per share Rs 23.4 27.8
Price to Cash Flow x 15.5 14.2
TTM P/E ratio x 17.2 12.2
Price / Book Value ratio x 2.7 2.4
Market Cap Rs m 12,290 11,996
Dividends per share (Unadj.) Rs 8.0 9.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for NUCLEUS SOFTWARE

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.1x during FY19, from 1.8x during FY18. The current ratio measures the company's ability to pay short-term and long-term obligations.

    Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 189.8x during FY19, from 157.6x during FY18. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company improved and stood at 14.7% during FY19, from 13.6% during FY19. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

    Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 19.0% during FY19, from 17.4% during FY18. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

    Return on Assets (ROA): The ROA of the company improved and stood at 11.1% during FY19, from 9.9% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 1.8 2.1
Debtors’ Days Days 701 536
Interest coverage x 157.6 189.8
Debt to equity ratio x 0.0 0.0
Return on assets % 9.9 11.1
Return on equity % 13.6 14.7
Return on capital employed % 17.4 19.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how NUCLEUS SOFTWARE has performed over the last 5 years, please visit here.

NUCLEUS SOFTWARE Share Price Performance

Over the last one year, NUCLEUS SOFTWARE share price has moved down from Rs 401.7 to Rs 338.9, registering a loss of Rs 62.8 or around 15.6%.

Meanwhile, the S&P BSE IT Index is trading at Rs 15,280.3 (up 0.4%). Over the last one year it has moved up from 12,100.6 to 15,280.3, a gain of 3,180 points (up 26.3%).

Overall, the S&P BSE SENSEX is up 16.3% over the year.

(To know more, check out historical annual results for NUCLEUS SOFTWARE and quarterly results for NUCLEUS SOFTWARE)

Annual Report FAQs

What is the current share price of NUCLEUS SOFTWARE?

NUCLEUS SOFTWARE currently trades at Rs 1,182.5 per share. You can check out the latest share price performance of NUCLEUS SOFTWARE here...

What was the revenue of NUCLEUS SOFTWARE in FY19? How does it compare to earlier years?

The revenues of NUCLEUS SOFTWARE stood at Rs 5,141 m in FY19, which was up 16.7% compared to Rs 4,406 m reported in FY18.

NUCLEUS SOFTWARE's revenue has grown from Rs 3,753 m in FY16 to Rs 5,141 m in FY19.

Over the past 4 years, the revenue of NUCLEUS SOFTWARE has grown at a CAGR of 11.1%.

What was the net profit of NUCLEUS SOFTWARE in FY19? How does it compare to earlier years?

The net profit of NUCLEUS SOFTWARE stood at Rs 745 m in FY19, which was up 19.2% compared to Rs 626 m reported in FY18.

This compares to a net profit of Rs 662 m in FY17 and a net profit of Rs 325 m in FY16.

Over the past 4 years, NUCLEUS SOFTWARE net profit has grown at a CAGR of 31.9%.

What does the cash flow statement of NUCLEUS SOFTWARE reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of NUCLEUS SOFTWARE reveals:

  • Cash flow from operations decreased in FY19 and stood at Rs 561 m as compared to Rs 769 m in FY18.
  • Cash flow from investments decreased in FY19 and stood at Rs -284 m as compared to Rs 609 m in FY18.
  • Cash flow from financial activity increased in FY19 and stood at Rs -260 m as compared to Rs -1,347 m in FY18.

Here's the cash flow statement of NUCLEUS SOFTWARE for the past 4 years.

(Rs m)FY16FY17FY18FY19
From Operations325951769561
From Investments66-773609-284
From Financial Activity-357-13-1,347-260
Net Cashflow421602722

What does the Key Ratio analysis of NUCLEUS SOFTWARE reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of NUCLEUS SOFTWARE reveals:

  • Operating profit margins witnessed a fall and down at 15.8% in FY19 as against 14.2% in FY18.
  • Net profit margins grew from 15.2% in FY18 to 15.4% in FY19.
  • Debt to Equity ratio for FY19 stood at 0.0 as compared to 0.0 in FY18.

Here's the ratio/financial analysis of NUCLEUS SOFTWARE for the past 4 years.

 FY16FY17FY18FY19
Operating Profit Margin (%)8.614.314.215.8
Net Profit Margin (%)9.317.815.215.4
Debt to Equity Ratio (x)0.00.00.00.0

Read: Latest Annual Report Analysis of NUCLEUS SOFTWARE

 

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