The Hindu Business Line : Nucleus joins bonus bandwagon — Net up 15.7 pc despite lower sales

Mr Vishnu R. Dusad, MD, Nucleus Software Exports Ltd, flanked by Mr P.K. Sanghi, CFO and Mr Niraj Vedwa, V-P, Sales & Marketing, at a press conference in the Capital on Monday. - - Kamal Narang

New Delhi , April 26

FINANCIAL services software producer Nucleus Software Exports Limited has announced a 15.7 per cent increase in net profit at Rs 9.73 crore for 2003-04.

The company's revenues, however, fell 10 per cent from Rs 88.83 crore in 2003-04 as compared to Rs 80.09 in the previous year.

Company executives here said on Monday that the decline in revenues was due to a delay in finalisation of orders from South East Asia and the Middle-East region, key markets for the company.

"The outbreak of SARS (Severe Acute Respiratory Syndrome) in the South-East Asian countries and the Iraq war caused a delay in orders from these important markets. There is a lag between finalisation of contracts and cash flows, which is reflected in the lower revenues," Nucleus Managing Director, Mr Vishnu R. Dusad, told reporters here.

At the same time, the cost rationalisation drive and optimal deployment of human resources led to increased profitability.

The company has announced a 1:1 bonus and the board has recommended a 25 per cent dividend for 2003-04. Last year, the company had announced a 20 per cent dividend.

During the December-March quarter, Nucleus' consolidated revenue declined marginally to Rs 22.83 crore against Rs 22.96 crore in the same quarter a year ago. The quarterly net profit figure stood at Rs 4.35 crore as against Rs 3.01 in the same period last year.

The company added eight new clients during the year including its first US client - Delaware-based Bancorp Bank, Mr Dusad said.

He said that the company, which gets its bulk of revenues from Japan and Singapore, would focus more on the US market. "At present, the US accounts for just 4 per cent of our total market, while Japan and Singapore account for 37 per cent and 32 per cent respectively. We are perhaps among the first five companies to sell a software product in the US market. We hope to get more customers in the country," he added.