Oracle Financial Services Software records 5% growth in Q2 FY24 revenue

Oracle Financial Services Software Limited, a major subsidiary of Oracle, recently publicized its quarterly financial outcomes for the period concluding September 30, 2023. Notably, the firm’s consolidated revenue for this quarter reached an impressive Rs. 1,445 Crore, showcasing a 5% growth on a year-over-year basis. Similarly, the net income followed suit, rising by 5% year-over-year to stand at Rs. 417 Crore.

Breakdown of Business Vertical Performance

Diving deeper into the financial details, the Product business of Oracle Financial Services depicted a revenue increment of 6% year-over-year, achieving Rs. 1,298 Crore. This segment’s operating income remained static, equaling the figures from the same timeframe in the last fiscal year at Rs. 553 Crore. On the flip side, the Services business witnessed a slight dip in its revenue by 2%, settling at Rs. 147 Crore. The operating income for this segment also decreased by 17% year-over-year, culminating in Rs. 33 Crore.

Executive Insights

Makarand Padalkar, stepping in as the Managing Director and CEO of Oracle Financial Services Software, remarked, “I’m eager to spearhead the company’s future endeavors. Our recent quarter witnessed robust license wins worth $40.5 million, with considerable traction from our cloud offerings. Our comprehensive portfolio has an encouraging deal pipeline.” Meanwhile, Avadhut Ketkar, the firm’s new Chief Financial Officer, commented, “Taking over as CFO is thrilling. Our consistent performance was evident this quarter, marked by an operating margin of 36.8% and a net margin of 28.9%. The DSO of 61 days emphasizes our healthy accounts receivable.”

Significant Business Developments

Oracle Financial Services has made significant strides during the recent quarter:

• Secured license deals worth $40.5 million with entities across 26 nations.
• 11 customers initiated the use of Oracle Financial Services software products.
• Partnerships with established financial institutions, such as Westlake Financial, Symbiotics Investments SA, LAPO Microfinance Bank, and more, were solidified.
• Several prominent financial entities, both in the USA and globally, inked deals for Oracle Financial Services Analytical Applications.
• Famed institutions like Dutch-Bangla Bank PLC have extended and renewed their technological affiliations with Oracle, reinforcing their commitment to digital transformation.