Rs. 240/Share Dividend: May 7 Fixed As Record Date; Buy The IT Stock To Be Eligible?

As of Thursday's closing session, Oracle Financial Services Software Limited, a large-cap IT company, has a market valuation of Rs 61,875.72 Cr. The financial results for the quarter and year ending March 31, 2024, as well as a substantial dividend recommendation of Rs 240 per share, have been released by the company. Oracle Financial Services Software's shares closed 3.00% down at Rs 7138.60 a share on Thursday. The IT stock recorded a 52-week-high of Rs 9,021.40 on (01/04/2024) and a 52-week-low of Rs 3,408.95 on (26/04/2023).

Oracle Financial Services Software Dividend

The Board of Directors "approved an Interim Dividend for the financial year 2023-24 of Rs. 240/- per equity share of face value of Rs. 5/- each; fixed Tuesday, May 7, 2024 as the Record Date for the purpose of said Interim Dividend; decided that the Interim Dividend be paid on or before Thursday, May 23, 2024 to the Shareholders whose names appear on the list of members of the Company as at the close of business on Tuesday, May 7, 2024," said Oracle Financial Services Software in a regulatory filing on April 24, 2024.

Oracle Financial Services Software Q4 Results

Revenue for the fiscal year 2024 was Rs. 6,373 crore on a consolidated basis, which represents a 12% increase over the fiscal year 2022-2023. Operating income climbed by 13% to Rs. 2,680 crore in the fiscal year 2024 from the previous year. The net income for the fiscal year 2024 climbed by 23% to Rs. 2,219 crore from the previous year. Revenue for the quarter was Rs. 1,642 crore on a consolidated basis, up 12% from the year-ago quarter. Operating income improved 13% YoY to Rs. 703 crore for the quarter. The quarter's net income was Rs. 560 crore, a 17% increase from Q4FY23.

The products division reported a rise of 12% in revenue, or Rs. 1,491 crore, and a rise of 13% in operating income, or Rs. 718 crore, on a consolidated basis for the three months ended March 31, 2024. The services sector reported revenue of Rs. 151 crore, up 13%, and operating income of Rs. 44 crore, up 47%. Oracle Financial Services Software's net profit improved 16.86% to Rs 560.12 crore in the quarter that ended in March 2024 compared to Rs 479.30 crore in the quarter that ended in March 2023.

Makarand Padalkar, Managing Director and Chief Executive Officer, Oracle Financial Services Software, said, "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."

"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," Makarand Padalkar further added.

Avadhut Ketkar, Chief Financial Officer, Oracle Financial Services Software, said, "For the quarter, our revenue increased by 12% and net income grew by 17% on year-over-year basis. We continued to deliver robust financial performance by offering industry leading products and services to the financial services industry. For the quarter ended March 31, 2024, our operating margin was 43% and net margin was 34%. For the year ended March 31, 2024, we posted operating margin of 42% and net margin of 35%."

Oracle Financial Services Software Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said OFSS is currently trading at Rs 7222 and has shown a strong correction from higher levels, forming lower highs and lower lows.

The immediate support for OFSS Ltd is at Rs 6911. Closely aligned with the 100-day Exponential Moving Average (EMA), signifies historical buying interest and provides a foundation for the stock's price stability. This level serves as a potential stop for downward movements.

There is a good buying opportunity near the Rs 7111 level for those looking to go long on the stock. If the price breaks the Rs 7680 mark, stock can move towards 8188 levels and higher.

For a cautious approach, buying on dips is suggested at Rs 7111 with a stop-loss (SL) at Rs 6911. The targets for this trade are Rs 8188.

In summary, OFSS Ltd presents potential buying opportunities, but investors should closely monitor the stock's price movement and implement appropriate risk management strategies to protect their investments.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.