Nucleus Software Q4 FY 2019 revenue up by 14%, net profit after tax reports slight dip

Banking services and solutions provider Nucleus Software reported a consolidated revenue of Rs 127 crore in the fourth quarter of FY 2019, compared to the Rs 111 crore it generated in the corresponding quarter of the previous year.

This is also higher than the Rs 123 crore it posted three months ago and the Rs 121 crore reported for the second quarter of FY 2019.

The company’s product business revenue for the quarter was at Rs 100.4 crore, up 12% from the Rs 89 crore in the same quarter last year.

Headquartered in Noida, Nucleus Software offers IT and consultancy services across various sectors of the banking industry such as retail banking, corporate banking, internet banking and automotive finance. It has its operations in over 150 companies across 50 countries.

Net profit after tax reported a slight dip in the fourth quarter, coming in at Rs 17.1 crore in comparison to Rs 17.3 it reported in the same quarter last year. This is also less than the Rs 21 crore it reported three months ago and the Rs 19 crore reported in the second quarter.

Nucleus Software won six product orders, including two in Middle East and four in India during the period. It also gained 13 new customers in the fourth quarter, thanks to its technology solution, FinnOne Neo Cloud.

FinnOne Neo is a lending solution built on an advanced technology platform, with application across retail, corporate and Islamic sectors. It helps digitise the complete loan lifecycle and help customers make better credit decisions.

Many Non-Banking Financial Institutions (NBFCs), including Esskay Fincorp, Finova Capital, TAB Capital, Sai Point Finance, Essel Home Loans, Manappuram Home Finance Limited, Manappuram Finance Limited, and Shubham Housing Development Finance Company have deployed the FinnOne Neo Solutions to power their businesses.

FY 2019 results

The company reported an annual revenue of Rs 484 crore in FY 2019, an increase of 18% from the Rs 411 crore in FY 2018.

Net profit after tax during FY 2019 was Rs 74.5 crore, up 19% from the Rs 62.5 crore in FY 2018.

During FY 2019, Nucleus Software reported a product business revenue of Rs 383 crore, up 17% from the Rs 326 crore it recorded in FY 2018.

“During the year, we have had growth across all geographies, driven by our market leading value proposition which is resonating with financial institutions around the globe. We have added 19 new customers, won 26 product orders across Asia-Pacific region, India, Africa and the Middle East and also implemented 69 product modules successfully”, said RP Singh, CEO, Nucleus Software.

As of March 31, 2019, the global strength of employees at Nucleus Software was at 2,054, a 10% increase from 1,851 in the corresponding period last year.