Nucleus Software, the leading provider of lending and transaction banking solutions to the global financial services industry, announced its financial results for the quarter and nine months ended 31 st December, 2020.
The company ended 5% lower at Rs554.10 apiece on the BSE on Friday.
Consolidated revenue for the third quarter of FY21 is at Rs124.0cr compared to Rs130.3cr in Q3 of the previous year. Revenue for the first nine months of FY21 is at Rs389.4cr, against Rs382.6cr in the corresponding nine months of FY20.
RP Singh (CEO, Nucleus Software)said, “Our number 1 priority continues to be helping our customers successfully execute their digital transformation programs, while delivering tremendous value to their business. I am proud to report that, during the quarter, we added 3 new customers and our solutions were successfully implemented by 9 financial institutions worldwide. In addition, we launched the latest version of our award winning digital lending platform - FinnOne Neo 5.5, which is designed specifically to help lenders rapidly expand business operations and generate new digital revenue streams by targeting new customer segments."
"We were also delighted to win the ‘Best Technological Innovation in Payments (B2B) award’ for FinnAxia at the Seamless Middle East 2020 in Dubai. We launched the latest version of our integrated global transaction banking solution - FinnAxia 7.5 to help banks increase corporate supply chain resiliency in the Covid-19 world. I am proud to report that our digital cash solution - PaySe, has been selected by the Reserve Bank of India (RBI) for inclusion in India’s first Regulatory Sandbox on retail payments. PaySe is one of only 2 solutions that were ready to immediately start testing under the program," he added.
“I am happy to share that the Board of Directors has appointed Parag Bhise as the new Chief Executive Officer effective from April 1, 2021 as I retire having reached my retirement age. I will continue as an Executive Director of the Company. Anurag Mantri (Additional Executive Director) has been appointed as the Chief Financial Officer with immediate effect. Both Parag and Anurag have been with Nucleus Software for more than two decades, and I am certain that under their leadership Nucleus will continue to focus on what it does best – helping our customer succeed by developing innovative technologies”, he further added.
Financial highlights:
Consolidated results for the Quarter ended December 31, 2020
o Consolidated revenue for the quarter stood at Rs124.0cr in comparison to Rs130.3cr in the corresponding Q3 of the previous year
o Product business revenue for the quarter was at Rs103.2cr in comparison to Rs103.9cr in the corresponding Q3 of the previous year
o EBIDTA for the quarter stood at Rs26.1cr in comparison to Rs23.4cr in the corresponding Q3 of the previous year
o Net Profit after Tax (PAT) stood at Rs24.8cr in comparison to Rs23.2cr in the corresponding Q3 of the previous year
o Earnings Per Share for the quarter is at Rs8.55 in comparison to Rs7.99 in the corresponding Q3 of the previous year
Consolidated results for the nine months ended December 31, 2020
o Consolidated revenue stood at Rs389.4cr in comparison to Rs382.6cr in the corresponding nine months of the previous year
o Product business revenue at Rs325.0cr in comparison to Rs302.4cr in the corresponding nine months of the previous year
o EBIDTA stood at Rs96.6cr in comparison to Rs61.9cr in the corresponding nine months of the previous year
o Net Profit after Tax (PAT) stood at Rs90.6cr in comparison to Rs60.9cr in the corresponding nine months of the previous year
o Earnings Per Share at Rs31.20 in comparison to Rs20.96 in the corresponding nine months of the previous year
Liquidity:
Cash and cash equivalents, including investments in debt schemes of mutual funds, fixed deposits with banks, tax free bonds and preference shares are at Rs673.3cr as on 31st December, 2020, as against Rs531.9cr on 31st December, 2019.
Business Highlights:
· Added 3 new customers, our solutions were successfully implemented by 9 financial institutions worldwide
· Won 05 product orders from various geographies during the quarter
· Appointed Parag Bhise (Whole Time Director) as the Designated Chief Executive Officer (CEO)
· Appointed Anurag Mantri (Additional Executive Director) as the Chief Financial Officer and Key Managerial Personnel of the Company
· Cholamandalam Investment and Finance Company Limited (Chola) has successfully gone live with Nucleus Software’s advanced co-lending solution
· Launched the latest version of its award winning digital lending platform - FinnOne Neo 5.5. The new version has been designed specifically to help lenders rapidly expand business operations and generate new digital revenue streams by targeting new customer segments. It will also enhance their digital portfolio rapidly and deliver end-to-end contactless banking
· Released the latest version of our integrated global transaction banking solution - FinnAxia 7.5 to help banks increase corporate supply chain resiliency in the Covid-19 world
· Won the “Best Technological Innovation in Payments (B2B)” award at the Seamless Middle East 2020 conference in Dubai
· Hosted a webinar on ‘Lending in a Virtual World’for the leading banks and NBFCs globally
· Demonstrated expertise on how lending is evolving in an increasingly virtual world and how technology can help banks and other financial services companies build personalized relationships, make informed credit decisions and use AI in collections at the Australian Banking Innovation Summit 2020 (ABIS)
· The global strength of employees at Nucleus Software as on December 31st 2020 stood at 1998.