NUCLEUS SOFTWARE 2018-19 Annual Report Analysis

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NUCLEUS SOFTWARE 2018-19 Annual Report Analysis
Thu, 20 Jun

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 35.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.4% in FY19 as against 14.3% in FY18.
  • Depreciation charges increased by 41.1% increased by 0.0% YoY, respectively.
  • Other income declined by 4.3% YoY.
  • Net profit for the year grew by 19.2% YoY.
  • Net profit margins during the year grew from 14.2% in FY18 to 14.6% 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 287 275 -4.3%
Total Revenues Rs m 4,405 5,115 16.1%
Gross profit Rs m 587 793 35.0%
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 % 14.3 16.4
Effective tax rate % 21.7 22.6
Net profit margin % 14.2 14.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 fell 7% and stood at Rs 447 million 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 6%.

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 6,473 6,854 5.9
 
Current assets Rs m 3,172 3,593 13.3
Fixed Assets Rs m 483 447 -7.4
Total Assets Rs m 6,473 6,854 5.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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: Company Reports, Regulatory Filings, 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 345.0, stands at 15.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the price to sales ratio stands at 2.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 13.2 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 19.3 23.0
Price to Cash Flow x 14.4 13.2
TTM P/E ratio x 13.4 15.0
Price / Book Value ratio x 2.7 2.4
Market Cap Rs m 10,019 11,178
Dividends per share (Unadj.) Rs 8.0 9.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 11.0% during FY19, from 9.7% 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 70 54
Interest coverage x 157.6 189.8
Debt to equity ratio x 0.0 0.0
Return on assets % 9.7 11.0
Return on equity % 13.6 14.7
Return on capital employed % 17.4 19.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 up from Rs 370.7 to Rs 345.0, registering a loss of Rs 25.7 or around 6.9%.

Meanwhile, the S&P BSE IT Index is trading at Rs 15,908.3 (down 0.5%). Over the last one year it has moved up from 13,648.9 to 15,908.3, a gain of 2,259 points (up 16.6%).

Overall, the S&P BSE SENSEX is up 11.5% over the year.

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

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For the quarter ended September 2019, NUCLEUS SOFTWARE has posted a net profit of Rs 211 m (up 10.2% YoY). Sales on the other hand came in at Rs 1 bn (up 5.5% YoY). Read on for a complete analysis of NUCLEUS SOFTWARE's quarterly results.

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