Oracle Financial Services Software Ltd, with a market capitalization of Rs. 109,797 crores, zero debt-to-equity ratio and return on equity of 29%, demonstrates strong performance through financial software solutions and technological innovations in banking. Their comprehensive product portfolio and global market presence drive consistent growth and profitability.
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Overview Of the IT Sector
The IT sector is undergoing rapid digital transformation driven by cloud computing, artificial intelligence and automation solutions. Companies are investing heavily in modernizing legacy systems and developing innovative technology platforms. Market dynamics favour digital-first approaches.
Emerging technologies, cybersecurity challenges and talent acquisition create both obstacles and opportunities for growth in cloud services, financial technology and enterprise solutions development. Industry leaders focus on sustainable innovation.
Financial Analysis of Oracle Corporation
| FY 24 | FY 23 | FY 22 | |
| Sales | 6,705 | 5,866 | 5,221 |
| Expenses | 3,590 | 3,227 | 2,723 |
| Operating Profit | 3,114 | 2,639 | 2,499 |
| OPM % | 46 | 45 | 47 |
| Other Income | 11 | 25 | 134 |
| EBITDA | 3,125 | 2,663 | 2,633 |
| Interest | 28 | 13 | 12 |
| Depreciation | 74 | 81 | 93 |
| Profit Before Tax | 3,022 | 2,570 | 2,528 |
| Tax % | 26.57 | 29.72 | 25.29 |
| Net Profit | 2,219 | 1,806 | 1,889 |
| EPS | 256.07 | 209.05 | 219 |
| Dividend Payout % | 93.72 | 107.63 | 86.76 |
* Consolidated Figures in Rs. Crores
Oracle Company Metrics
Oracle Financial Services Software (OFSS) recorded steady growth in FY 24, with sales reaching ₹6,705 crores and net profit at ₹2,219 crores. Key metrics highlight improved operating performance, profitability and efficient expense management, showcasing strong financial resilience compared to FY 23.
Sales Growth: Sales increased from ₹5,866 crores in FY 23 to ₹6,705 crores in FY 24, reflecting a growth of 14.3%. This indicates robust demand for Oracle’s financial software and services across global markets.
Expense Trends: Expenses rose to ₹3,590 crores in FY 24 from ₹3,227 crores in FY 23, marking an 11.2% increase. Expense control remains evident despite higher revenues, maintaining efficient operations.
Operating Profit & Margins: Operating profit grew from ₹2,639 crores in FY 23 to ₹3,114 crores in FY 24, an 18% rise. Operating profit margins improved to 46.38% from 44.80%, reflecting efficient cost management and strong operational performance.
Profitability Indicators: Net profit increased by 22.8%, rising from ₹1,806 crores in FY 23 to ₹2,219 crores in FY 24. EPS improved to ₹256.07, compared to ₹209.05 in FY 23, indicating enhanced shareholder returns.
Taxation & Dividend: The tax rate decreased from 29.72% in FY 23 to 26.57% in FY 24, aiding profitability. The dividend payout reduced to 93.72% in FY 24 from 107.63% in FY 23, reflecting a balanced distribution strategy.
Key Financial Metrics: Total assets grew to ₹9,936 crores in FY 24, up from ₹9,276 crores in FY 23. Reserves increased to ₹7,683 crores, while current liabilities rose to ₹1,280 crores, showcasing improved financial stability and growth potential.
Oracle Stock Performance
Oracle Financial Services Software delivered impressive returns, achieving a 1-year ROI of 200%, a 3-year ROI of 47.3% and a 5-year ROI of 35.8%. These figures highlight strong performance and consistent growth over different investment horizons.
| Period | Return on Investment (%) |
| 1 Year | 200 |
| 3 Years | 47.3 |
| 5 Years | 35.8 |
Oracle Shareholding Pattern
Oracle’s shareholding pattern for Sep-24 shows promoters holding a stable 72.69%, a slight rise in FII to 7.73%, a decline in DII to 9.91% and reduced retail participation at 9.67%, reflecting balanced investor activity.
| All values in % | Sep-24 | Jun-24 | Mar-24 |
| Promoters | 72.69 | 72.71 | 72.75 |
| FII | 7.73 | 5.1 | 6.13 |
| DII | 9.91 | 11.49 | 10.26 |
| Retail & others | 9.67 | 10.7 | 10.86 |
Oracle Partnerships and acquisitions
Oracle Financial Services has established strategic partnerships with global banking institutions, fintech companies and technology providers. Their collaborations focus on developing advanced banking solutions, regulatory compliance platforms and digital transformation services. Recent alliances strengthen market position.
Recent partnerships strengthen their position in cloud banking solutions and artificial intelligence integration. These alliances help deliver comprehensive financial software solutions while enhancing customer experience through innovative technology and expanding global reach.
Strategic investments in fintech startups and banking technology companies expand their capabilities. These collaborations drive innovation in digital banking, risk management and regulatory compliance solutions. Technology integration enhances service delivery.
Oracle Peer Comparison
Oracle Financial Services Software, with a market cap of ₹1,09,796.73 crores and a P/E of 44, leads in 1-year returns at 200.19%, outperforming peers like PB Fintech (₹94,266.56 crores, 158.32%) and Coforge (₹63,189 crores, 51%).
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | ROE % | EPS 12M Rs. | 1Yr return % | ROCE % | Div Yld % | CP Rs. |
| Oracle Fin.Serv. | 12646.6 | 109796.73 | 44 | 28.98 | 287.85 | 200.19 | 39.54 | 1.9 | 12646.6 |
| PB Fintech. | 2052.75 | 94266.56 | 543.98 | 1.13 | 4.62 | 158.32 | 1.75 | 0 | 2052.75 |
| Coforge | 9,451 | 63,189 | 80 | 24.09 | 125 | 51 | 28.6 | 0.8 | 9451.1 |
| Tata Elxsi | 6,886 | 42,890 | 53 | 34.47 | 131.17 | -21.33 | 42.74 | 1.02 | 6886.35 |
| KPIT Technology. | 1460.6 | 40041.44 | 55 | 31.19 | 26.54 | -3.52 | 38.36 | 0.46 | 1460.6 |
| Tata Technologies. | 898.85 | 36463.52 | 56 | 21.88 | 15.95 | -23.84 | 28.29 | 0.93 | 898.85 |
| Inventors Knowl | 2005.6 | 34,411 | 93 | 37.29 | 21.68 | 0 | 30.01 | 0 | 2005.6 |
Future of Oracle in the IT industry
Oracle Financial Services is investing heavily in cloud-native banking solutions, artificial intelligence integration and regulatory technology platforms. Their focus includes expanding digital banking capabilities and enhancing financial software offerings globally. Innovation drives market leadership.
The company plans to leverage emerging technologies for improved banking solutions while strengthening compliance platforms. Investment in cloud infrastructure and artificial intelligence supports innovation in financial services. Digital transformation accelerates growth.
Their roadmap emphasizes the development of next-generation banking solutions, regulatory compliance tools and digital transformation services. The focus remains on delivering cutting-edge financial technology solutions globally. Strategic initiatives enhance value.
Oracle Corp- FAQs
Oracle Financial Services Software Ltd maintains a market capitalization of Rs. 109,797 crores, reflecting its strong position in banking technology solutions. This valuation demonstrates investor confidence in growth potential. Market leadership drives valuation.
Oracle Financial Services leads in banking and financial software solutions, serving global financial institutions. Their comprehensive product portfolio and technological innovation establish them as industry leaders. Market presence continues expanding.
Oracle Financial Services has strategically acquired fintech companies, banking software providers and regulatory technology firms. These acquisitions enhance their capabilities in digital banking and compliance solutions. Integration success drives value creation.
Oracle Financial Services provides comprehensive banking software solutions, regulatory compliance platforms and financial technology services. They enable digital transformation for global banking and financial institutions. Innovation drives product development.
Oracle Financial Services Software Ltd operates as a subsidiary of Oracle Corporation, with professional management overseeing operations while maintaining strong corporate governance practices. Strategic alignment ensures growth.
Major shareholders include Oracle Corporation as the parent company, institutional investors, mutual funds and public shareholders, maintaining strong market confidence and stability. Diverse ownership enhances governance.
Oracle Financial Services operates in the information technology industry, specializing in banking software, financial technology solutions and regulatory compliance platforms for global financial institutions. Technology leadership drives success.
Oracle Financial Services shows strong growth through increased adoption of banking solutions, regulatory compliance platforms and digital transformation services across global financial institutions. Client expansion accelerates revenue.
To invest in Oracle shares, open a trading account with a reliable broker like Alice Blue. Research Oracle’s financials, performance, and market trends. Place a buy order through your brokerage platform, specifying the number of shares and desired purchase price.
Current market metrics, growth potential and industry leadership position indicate a balanced valuation. Strong fundamentals and strategic initiatives in financial technology support market value. Growth prospects remain positive.
Oracle Financial Services shows promising growth potential through digital banking solutions, regulatory technology innovations and global market expansion. Their technological leadership supports sustainable development. Strategic vision ensures success.
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Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
