IT stock declares whopping dividend of ₹225 per share: Do you own?

The company said in a stock exchange filing that its Board of Directors have “approved an Interim Dividend for the financial year 2022-23 of Rs. 225/- per equity share of face value of Rs. 5/- each; fixed Tuesday, May 9, 2023 as the Record Date for the purpose of said Interim Dividend; decided that the Interim Dividend be paid on or before Thursday, May 25, 2023 to the Shareholders whose names appear on the list of members of the Company as at the close of business on Tuesday, May 9, 2023.”

On a consolidated basis, the company recorded a quarterly revenue from operations of ₹1,470.52 Cr during Q4FY23, up by 15.17% YoY from ₹1,276.77 Cr during Q4FY22 whereas on a consolidated basis, revenue for fiscal year 2023 was Rs. 5,698 Crore, up 9% compared to ₹5,221.45 Cr during fiscal year 2022.

Its operating income for fiscal year 2023 was Rs. 2,378 Crore, down 1% compared to fiscal year 2022 whereas the operating income of Rs. 625 Crore was up 18% year-over-year and was recorded during the quarter ended March 2023.

The company recorded a quarterly net income of Rs 1531.79 Cr, as against ₹1318.85 Cr during the year-ago quarter whereas during FY23 its net income reached ₹5890.15 Cr compared to ₹5355.79 Cr in FY22. Oracle Financial Services said it recorded net expenses of Rs 846.02 Cr during Q4FY23 as against ₹749.03 Cr during Q4FY22 and during FY23 the net expenses were ₹3320.24 Cr as against ₹2827.52 Cr during FY22.

During Q4FY23, the company’s net profit stood at ₹479.30 Cr, down by 0.50% YoY from ₹481.74 Cr during Q4FY22, whereas during FY23, the net profit was ₹1806.14 Cr as against ₹1888.82 Cr during FY22. Oracle Financial Services said its EPS was ₹55.48 during the quarter under review as against ₹55.86 in the year-ago quarter, whereas in FY23 its EPS was 209.14 compared to ₹219.19 during FY22.

For the full year ended March 31, 2023, the products business posted revenue of Rs. 5,131 Cr, up 9% compared to fiscal year 2022 and for the same period, the services business posted revenue of Rs. 567 Cr, up 7% compared to fiscal year 2022. 

Chet Kamat, Managing Director and Chief Executive Officer, Oracle Financial Services Software, said:“On a full-year basis, our total revenue grew by 9%. We signed US$28.8 million in new license fees in the quarter and our quarterly revenue grew by 15.2% on a year-overyear basis. We also see our subscription/cloud revenue growing. We are engaged in several strategic client initiatives and have a strong deal pipeline. During the year, we invested heavily in our human capital and product capabilities, and we have continued to see success for all our products globally.”

Makarand Padalkar, Executive Director and Chief Financial Officer, Oracle Financial Services Software, said: “We maintained our focus on delivering robust operating performance. Our workforce increased by 9% between March 2022 and March 2023, while the operating margin for the financial year 2022-23 was 41.7%, and the net margin was 31.7%. On a quarter-over-quarter basis, our quarterly operating income increased by 7.8% and the net income by 9.6%.” 

The shares of Oracle Financial Services Software closed today on the NSE at ₹3,573.90 apiece level, up by 2.10% from the previous close of ₹3,500.35. Commenting on the technical outlook of the stock, A R Ramachandran, Co-founder & Trainer-Tips2trades said “Despite average Q4FY23 results where there was a slight drop in annual profit, Oracle Financial Services stock price has done well over the past few sessions and now looks overbought on the Daily charts. Investors should book profits at current levels and wait for a dip near support of 3240 to initiate fresh buy positions for better returns in the near future.”