Oracle Financials Net Income Soared 23% in FY2024

Oracle Financial Services Limited (OFSS), a leading provider of products and services to the financial services industry, recently released its results for the quarter (Q4 FY2024) and year (FY2024) ended March 31, 2024.

Quarterly Performance

On a consolidated basis, the company recorded a 12% YoY revenue growth to ₹1,642 crore. In addition, operating income for the quarter amounted to ₹703 crore, reflecting a 13% YoY growth. The net income for the quarter rose 17% to ₹560 crore.

The company’s products business posted revenue growth of 12% to ₹1,491 crore. The services business witnessed a revenue growth of 13% to ₹151 crore, and the business recorded a rise of 47% in operating income to ₹44 crore.

Yearly Performance

During FY2024, Oracle Financial Services posted revenue growth of 12% to ₹6,373 crore. Operating income for the year stood at ₹2,680 crore, up 13% compared to fiscal year 2023. Net income for FY2024 rose 23% to ₹2,219 crore. The company’s Board declared an interim dividend of ₹240 per equity share with a face value of ₹5/—each for the financial year 2023-24.

Business Highlights

During FY2024, a notable Canadian bank signed a deal to implement Oracle Financial Services Analytical Applications. In addition, a well-known European bank went live with a centralised payment hub by implementing Oracle Banking Payments and Oracle Banking Digital Experience to drive its international branch operations.

“We are very pleased to report double-digit growth in revenues, operating income, and net income for the fiscal year ended March 31, 2024. This was a result of our winning portfolio of products and services focused on the financial services industry. During the fiscal year 2024, we signed license fees of US$ 137.3 million across our entire range of products, registering 43.7% growth over license fee signings in fiscal year 2023. The robust growth of our cloud offering pipeline drove the strength of cloud bookings this fiscal year, and we expect to see continued strength in our cloud offering pipeline,” said Makarand Padalkar, Managing Director and Chief Executive Officer.

He further added, “With customer preference shifting toward cloud services, our revenue mix is shifting more toward recurring revenue services, including cloud services, and less for transactional revenue, including signed license fees, which were US$ 19.9 million for the quarter ended March 31, 2024. We successfully delivered a number of complex and challenging product implementations across various regions, demonstrating the richness and quality of our offerings. Our strong financial performance this fiscal year reflects the continued importance of our product offerings to global financial institutions, supporting them in their innovation and transformation business objectives.”

On April 25, 2024, the company’s shares opened at ₹7,126.10 and touched the day-high of ₹7,482.20 at 09:35 AM

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