ORACLE FINANCIAL Announces Quarterly Results (4QFY20); Net Profit Down 17.4%

Tue, 19 May

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

ORACLE FINANCIAL Quarterly Financials

No. of Mths Qtr. Ending		3 Mar-19*	3 Dec-19*	3 Mar-20*	QoQ Change	YoY Change
Net Sales	Rs m	12,149	11,601	12,635	8.9%	4.0%
Other income	Rs m	613	621	371	-40.2%	-39.5%
Turnover	Rs m	12,762	12,222	13,007	6.4%	1.9%
Expenses	Rs m	6,931	6,339	6,983	10.2%	0.8%
Gross profit	Rs m	5,219	5,262	5,652	7.4%	8.3%
Depreciation	Rs m	162	268	274	2.1%	69.0%
Interest	Rs m	0	25	396	1506.8%	0.0%
Profit before tax	Rs m	5,670	5,590	5,354	-4.2%	-5.6%
Tax	Rs m	2,410	1,022	2,661	160.4%	10.5%
Profit after tax	Rs m	3,260	4,568	2,692	-41.1%	-17.4%
Gross profit margin	%	43.0	45.4	44.7
Effective tax rate	%	42.5	18.3	49.7
Net profit margin	%	25.5	37.4	20.7

Year-on-Year Performance:

• The company's operating income during the quarter grew 4.0% on a year-on-year (YoY) basis. The expenses were up by 0.8% YoY during the same period.
• The company's operating profit increased by 8.3% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 44.7% in 4QFY20 as against 43.0% in 4QFY19.
• Depreciation charges increased by 69.0% and finance costs increased by 0.0% YoY, respectively.
• Other income declined by 39.5% YoY during the quarter.
• Net profit for the quarter declined by 17.4% YoY. Net profit margins during the quarter declined from 25.5% in 4QFY19 to 20.7% in 4QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 8.9% on a quarter-on-quarter (QoQ) basis. The expenses were up by 10.2% QoQ during the same period.
• The company's operating profit increased by 7.4% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 44.7% in 4QFY20 as against 45.4% in 3QFY19.
• Net profit for the quarter declined by 41.1% QoQ, while net profit margins declined from 37.4% in 3QFY19 to 20.7% in 4QFY20.

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 3,432.4 to Rs 2,443.2, registering a Loss of Rs 989.2 or around 28.8%.

Meanwhile, the S&P BSE IT Index is trading at Rs 13,616.0 (up 0.9%). Over the last one year it has moved down from 15,409.1 to 13,616.0, a loss of 1,793 points (down 11.6%).

Overall, the S&P BSE SENSEX is down 22.1% over the year.

Current Valuations

At the current price of Rs 2,443.2, the price to earnings (P/E) ratio of ORACLE FINANCIAL stands at 14.1 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 6.3 times.