Oracle Financial Services Shares in Focus: Released Q2 FY25 Results

On October 24, 2024, Oracle Financial Services Software Limited, a majority-owned subsidiary of Oracle reported its financial results for the quarter that ended September 30, 2024. The company achieved a consolidated revenue of ₹1,674 Crore, marking a 16% increase YoY. In addition, the operating income rose to ₹724 Crore, up 36%, while net income reached ₹578 Crore, reflecting a 38% growth. The products business generated ₹1,518 Crore in revenue, up 17%, while the services business posted ₹156 Crore, a 7% increase.

Oracle Q2 FY25 Business Highlights

The company has recently reinforced its client relationships, securing significant agreements with various banks worldwide. A prominent U.S. bank has renewed its deal for Oracle Financial Services Analytical Applications Cloud services, enhancing its operational efficiency. Additionally, a Canadian bank has committed to implementing Oracle Banking technology through a new agreement for Oracle Financial Services Analytical Applications. An established American bank has also chosen Oracle Financial Services’ Profitability Management and Fund Transfer Pricing Analytical Applications to optimize its financial operations.

In the UK, a well-established bank has expanded its collaboration with Oracle by signing a new deal for Oracle Financial Services Analytical Applications Cloud Service. Similarly, a respected Italian bank has entered into an agreement for the same services. In the UAE, a large bank has extended its partnership with Oracle through a contract for Oracle Financial Services Analytical Applications Cloud Service. Furthermore, a bank in the Middle East and North Africa region has opted for Oracle’s Financial Services Analytical Applications to enhance its crime and compliance mechanisms. Lastly, a pioneering Japanese bank has broadened its technology partnership with Oracle, signing a deal for cash, liquidity, and virtual account management software solutions for its Singapore operations.

Additionally, Niva Bupa Health Insurance Company Limited in India, which serves over 10 million customers across more than 10,000 network hospitals, has signed an agreement for Oracle Financial Services Analytical Applications.

Makarand Padalkar, Managing Director and Chief Executive Officer of Oracle Financial Services Software said, “We are witnessing a mindset change in the global financial industry with a greater demand for cloud offerings. The continued growth in our license and cloud signings is a result of the proven ability of our products to deliver end-to-end solutions that meet customers’ business needs and arm them with a competitive advantage. We have successfully delivered this quarter a double-digit growth year-over-year with revenue growing 16% and net income growing 38%.” 

Avadhut Ketkar, Chief Financial Officer of Oracle Financial Services Software, said, “We are pleased with the overall performance of the business as we maintain the track record of delivering strong operating performance. The Product business continued to show momentum with the revenues for the quarter growing 17% year-over-year. The operating and net margins were robust at 43% and 35%, respectively. On a half-yearly basis too, our revenue grew by 17% and the net income increased by 30%, with an operating margin of 45% and a net margin of 35%.”

On October 25, 204, Oracle Financial Services Software shares opened at ₹10,210.05  and touched the day high of ₹10,927.60 at 09:30 AM.

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