Shares of Nucleus Software took an 8% dive on July 31 after a rough earnings report for June quarter. The banking software firm showed sharp drop in both revenue and net profit. Bad news for Nucleus .
Latest results reveal 3.5% year-on-year revenue slump,down to ₹210.4 crore. That's two quarters in a row of shrinking revenue. Net profit plummeted 32.2% to ₹23.9 crore from ₹35.2 crore same time last year.
EBITDA numbers paint a grim picture too, dipping to ₹7.6 crore. Margin nosedived to 3.6%, a steep fall from last year's 15.6%. Worst margin since June quarter of FY22 .
Nucleus Software's India operations,making up about 55% of revenue,saw a 6.4% drop year-on-year. It's a bad pattern — two quarters now of declining revenue. Middle East business showed growth,though. Regional contrast.
Operating and other expenses jumped 18% year-on-year,squeezing profits more. An exceptional gain of ₹9.8 crore in net profit came from revised remuneration structure,cutting gratuity and compensated absence liabilities.
Revenue down 6.4% from March quarter,net profit down 30.9%. Investors worried. Stock at ₹690,down 25% this year,40% off its 52-week high of ₹1,168.
Despite challenges,Nucleus Software's management remains committed to long-term value . Co-founder and MD Vishnu R. Dusad stressed innovation and disciplined execution in navigating financial services. "Our focus remains firmly anchored in creating long-term value through relevant innovation,trusted customer relationships and responsible execution," he said.
Parag Bhise,CEO,pointed to strides in product development,customer success, global market engagement. Looking ahead,plans include more investment in lending and transaction banking platforms, boosting AI and automation,and expanding partner network and global delivery.
Leadership aims for disciplined execution through FY27, hoping to turn things around and regain growth and profitability in quarters to come…
