ORACLE FINANCIAL Announces Quarterly Results (1QFY21); Net Profit Up 27.1%

Tue, 22 Sep

ORACLE FINANCIAL has announced its results for the quarter ended June 2020. Here is a detailed performance review of the same:

ORACLE FINANCIAL Quarterly Financials

No. of Mths Qtr. Ending		3 Jun-19*	3 Mar-20*	3 Jun-20*	QoQ Change	YoY Change
Net Sales	Rs m	12,751	12,635	13,373	5.8%	4.9%
Other income	Rs m	320	371	478	28.7%	49.2%
Turnover	Rs m	13,071	13,007	13,850	6.5%	6.0%
Expenses	Rs m	6,563	6,983	6,472	-7.3%	-1.4%
Gross profit	Rs m	6,188	5,652	6,901	22.1%	11.5%
Depreciation	Rs m	265	274	266	-3.0%	0.2%
Interest	Rs m	27	396	43	-89.2%	56.5%
Profit before tax	Rs m	6,216	5,354	7,070	32.1%	13.7%
Tax	Rs m	2,442	2,661	2,272	-14.6%	-7.0%
Profit after tax	Rs m	3,774	2,692	4,798	78.2%	27.1%
Gross profit margin	%	48.5	44.7	51.6
Effective tax rate	%	39.3	49.7	32.1
Net profit margin	%	28.9	20.7	34.6

Year-on-Year Performance:

• The company's operating income during the quarter grew 4.9% on a year-on-year (YoY) basis. The expenses were down by 1.4% YoY during the same period.
• The company's operating profit increased by 11.5% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 51.6% in 1QFY21 as against 48.5% in 1QFY20.
• Depreciation charges increased by 0.2% and finance costs increased by 56.5% YoY, respectively.
• Other income increased by 49.2% YoY during the quarter.
• Net profit for the quarter increased by 27.1% YoY. Net profit margins during the quarter increased from 28.9% in 1QFY20 to 34.6% in 1QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 5.8% on a quarter-on-quarter (QoQ) basis. The expenses were down by 7.3% QoQ during the same period.
• The company's operating profit increased by 22.1% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 51.6% in 1QFY21 as against 44.7% in 4QFY20.
• Net profit for the quarter increased by 78.2% QoQ, while net profit margins increased from 20.7% in 4QFY20 to 34.6% in 1QFY21.

To see how ORACLE FINANCIAL has performed over the last eight quarters,please visit here.

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ORACLE FINANCIAL Share Price Performance

Over the last one year, ORACLE FINANCIAL share price has moved down from Rs 3,161.2 to Rs 2,975.1, registering a Loss of Rs 186.1 or around 5.9%.

Meanwhile, the S&P BSE IT Index is trading at Rs 19,838.9 (down 0.1%). Over the last one year it has moved up from 15,579.3 to 19,838.9, a gain of 4,260 points (up 27.3%).

Overall, the S&P BSE SENSEX is up 3.3% over the year.

Current Valuations

At the current price of Rs 2,975.1, the price to earnings (P/E) ratio of ORACLE FINANCIAL stands at 16.1 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 7.7 times.