Oracle Financial Services Software reported a strong financial performance for Q4FY2025, with consolidated revenue rising 4.5% year-on-year (YoY) to ₹1,716.3 crore and net profit increasing 15% YoY to ₹643.9 crore. On a sequential basis (Q4FY25 vs Q3FY25), revenue grew marginally by 0.06%, while operating profit rose 7.12% to ₹764.7 crore, driven by a rise in operating profit margin from 41.62% to 44.56%. The company benefitted from a reduction in employee costs (from 49.66% to 47.25%) and lower other expenses, although selling and administration expenses saw a slight rise. Other income grew by 17.5% to ₹81.9 crore, and tax provisions dropped significantly, resulting in a lower effective tax rate of 23.25%. Compared to Q4FY2024, revenue increased 4.5%, supported by a 3.34% rise in Product License & Related segment sales (₹1,540.7 crore) and a 15.91% increase in IT Solutions & Consulting Services (₹175.6 crore). While overall PBIT margin dipped slightly from 46.38% to 45.96%, both business segments recorded strong growth in absolute PBIT figures.
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For the full year FY2025, consolidated revenue rose 7.43% to ₹6,846.8 crore, with the Product License & Related segment contributing ₹6,214.4 crore and IT Solutions & Consulting Services contributing ₹632.4 crore. Operating profit for the year rose 10.56% to ₹3,076.3 crore, and the operating profit margin improved to 44.93%. PBIT rose 10.06% to ₹3,201.3 crore, and profit before tax climbed 9.55% to ₹3,310.9 crore. Net profit for the year stood at ₹2,379.6 crore, up 7.22% from the previous year. The company maintained strong liquidity, with cash and bank balances rising to ₹5,951.4 crore and sundry debtors reducing to ₹1,183.7 crore. Cash flow from operating activities also increased to ₹2,198.9 crore. The company declared an interim dividend of ₹265 per equity share for FY2024-25.
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Operationally, the Products business posted 3% revenue growth in Q4FY25 (₹1,541 crore) and 7% growth for the full year (₹6,214 crore), while the Services business grew 16% in Q4 (₹176 crore) and 8% for the year (₹632 crore). CEO Makarand Padalkar attributed the solid performance to the company’s focus on customer-centricity, domain expertise, and global diversification. He highlighted strong cloud wins and double-digit annual growth in License and Cloud revenues for the fourth consecutive year. CFO Avadhut Ketkar emphasized disciplined cost management and operating efficiency, noting that revenue grew by 7% YoY despite a modest 1.5% increase in headcount. Promoters’ holding remained stable at 72.59% as of March 31, 2025.
