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NUCLEUS SOFTWARE 2023-24 Annual Report Analysis
Tue, 25 Jun

NUCLEUS SOFTWARE has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

NUCLEUS SOFTWARE Income Statement Analysis

  • Operating income during the year rose 30.3% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 40.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 26.7% in FY24 as against 24.7% in FY23.
  • Depreciation charges decreased by 22.3% and finance costs decreased by 6.9% YoY, respectively.
  • Other income grew by 49.4% YoY.
  • Net profit for the year grew by 49.9% YoY.
  • Net profit margins during the year grew from 20.1% in FY23 to 23.2% in FY24.

NUCLEUS SOFTWARE Income Statement 2023-24

No. of Mths Year Ending 12 Mar-23* 12 Mar-24* % Change
Net Sales Rs m 6,345 8,265 30.3%
Other income Rs m 341 509 49.4%
Total Revenues Rs m 6,685 8,774 31.2%
Gross profit Rs m 1,568 2,204 40.6%
Depreciation Rs m 187 146 -22.3%
Interest Rs m 10 10 -6.9%
Profit before tax Rs m 1,711 2,558 49.5%
Tax Rs m 433 642 48.3%
Profit after tax Rs m 1,278 1,916 49.9%
Gross profit margin % 24.7 26.7
Effective tax rate % 25.3 25.1
Net profit margin % 20.1 23.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Must See: These Segments are Witnessing Incredible Growth with Modi's Push

NUCLEUS SOFTWARE Balance Sheet Analysis

  • The company's current liabilities during FY24 stood at Rs 3 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 26.7%.
  • Current assets rose 27% and stood at Rs 6 billion, while fixed assets rose 29% and stood at Rs 5 billion in FY24.
  • Overall, the total assets and liabilities for FY24 stood at Rs 11 billion as against Rs 9 billion during FY23, thereby witnessing a growth of 27%.

NUCLEUS SOFTWARE Balance Sheet as on March 2024

No. of Mths Year Ending 12 Mar-23* 12 Mar-24* % Change
Networth Rs m 6,107 7,774 27.3
 
Current Liabilities Rs m 2,330 2,953 26.7
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 8,742 11,140 27.4
 
Current assets Rs m 4,834 6,118 26.5
Fixed Assets Rs m 3,908 5,023 28.5
Total Assets Rs m 8,742 11,140 27.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



NUCLEUS SOFTWARE Cash Flow Statement Analysis

  • NUCLEUS SOFTWARE's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 345.5% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion, an improvement of 1,451.1% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY24 stood at Rs -302 million on a YoY basis.
  • Overall, net cash flows for the company during FY24 stood at Rs -47 million from the Rs 147 million net cash flows seen during FY23.

NUCLEUS SOFTWARE Cash Flow Statement 2023-24

Particulars No. of months 12 12 % Change
Year Ending Mar-23 Mar-24
Cash Flow from Operating Activities Rs m 498 2,220 345.5%
Cash Flow from Investing Activities Rs m -127 -1,970 -
Cash Flow from Financing Activities Rs m -227 -302 -
Net Cash Flow Rs m 147 -47 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for NUCLEUS SOFTWARE

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 71.6, an improvement from the EPS of Rs 47.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,431.0, stands at 20.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.9 times, while the price to sales ratio stands at 4.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 15.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-23* 12 Mar-24*
Sales per share (Unadj.) Rs 237.0 308.7
TTM Earnings per share Rs 47.7 71.6
Diluted earnings per share Rs 47.7 71.6
Price to Cash Flow x 11.7 15.6
TTM P/E ratio x 13.4 20.0
Price / Book Value ratio x 2.2 4.1
Market Cap Rs m 13,698 32,194
Dividends per share (Unadj.) Rs 10.0 12.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for NUCLEUS SOFTWARE

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 2.1x during FY24, from 2.1x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

    Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 270.3x during FY24, from 168.7x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company improved and stood at 24.6% during FY24, from 20.9% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

    Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 33.0% during FY24, from 28.2% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

    Return on Assets (ROA): The ROA of the company improved and stood at 17.3% during FY24, from 14.7% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-23* 12 Mar-24*
Current ratio x 2.1 2.1
Debtors’ Days Days 1,005 734
Interest coverage x 168.7 270.3
Debt to equity ratio x 0.0 0.0
Return on assets % 14.7 17.3
Return on equity % 20.9 24.6
Return on capital employed % 28.2 33.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how NUCLEUS SOFTWARE has performed over the last 5 years, please visit here.

NUCLEUS SOFTWARE Share Price Performance

Over the last one year, NUCLEUS SOFTWARE share price has moved up from Rs 1,025.8 to Rs 1,431.0, registering a gain of Rs 405.3 or around 39.5%.

Meanwhile, the S&P BSE IT Index is trading at Rs 36,158.6 (down 0.0%). Over the last one year it has moved up from 28,855.0 to 36,158.6, a gain of 7,304 points (up 25.3%).

Overall, the S&P BSE SENSEX is up 21.8% over the year.

(To know more, check out historical annual results for NUCLEUS SOFTWARE and quarterly results for NUCLEUS SOFTWARE)

Annual Report FAQs

What is the current share price of NUCLEUS SOFTWARE?

NUCLEUS SOFTWARE currently trades at Rs 1,051.0 per share. You can check out the latest share price performance of NUCLEUS SOFTWARE here...

What was the revenue of NUCLEUS SOFTWARE in FY24? How does it compare to earlier years?

The revenues of NUCLEUS SOFTWARE stood at Rs 8,774 m in FY24, which was up 31.2% compared to Rs 6,685 m reported in FY23.

NUCLEUS SOFTWARE's revenue has grown from Rs 5,581 m in FY20 to Rs 8,774 m in FY24.

Over the past 5 years, the revenue of NUCLEUS SOFTWARE has grown at a CAGR of 12.0%.

What was the net profit of NUCLEUS SOFTWARE in FY24? How does it compare to earlier years?

The net profit of NUCLEUS SOFTWARE stood at Rs 1,916 m in FY24, which was up 49.9% compared to Rs 1,278 m reported in FY23.

This compares to a net profit of Rs 409 m in FY22 and a net profit of Rs 1,180 m in FY21.

Over the past 5 years, NUCLEUS SOFTWARE net profit has grown at a CAGR of 21.1%.

What does the cash flow statement of NUCLEUS SOFTWARE reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of NUCLEUS SOFTWARE reveals:

  • Cash flow from operations increased in FY24 and stood at Rs 2,220 m as compared to Rs 498 m in FY23.
  • Cash flow from investments decreased in FY24 and stood at Rs -1,970 m as compared to Rs -127 m in FY23.
  • Cash flow from financial activity decreased in FY24 and stood at Rs -302 m as compared to Rs -227 m in FY23.

Here's the cash flow statement of NUCLEUS SOFTWARE for the past 5 years.

(Rs m)FY20FY21FY22FY23FY24
From Operations7471,1495774982,220
From Investments-291-1,2571,585-127-1,970
From Financial Activity-341-133-2,129-227-302
Net Cashflow123-24535147-47

What does the Key Ratio analysis of NUCLEUS SOFTWARE reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of NUCLEUS SOFTWARE reveals:

  • Operating profit margins witnessed a fall and down at 26.7% in FY24 as against 24.7% in FY23.
  • Net profit margins grew from 20.1% in FY23 to 23.2% in FY24.
  • Debt to Equity ratio for FY24 stood at 0.0 as compared to 0.0 in FY23.

Here's the ratio/financial analysis of NUCLEUS SOFTWARE for the past 5 years.

 FY20FY21FY22FY23FY24
Operating Profit Margin (%)18.124.57.424.726.7
Net Profit Margin (%)17.123.08.220.123.2
Debt to Equity Ratio (x)0.00.00.00.00.0

 

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