Shares of Nucleus Software Exports hit their upper circuit limit of 20% on Tuesday, closing at ₹1,411 each, after the company announced that its board will meet on August 22 to discuss a potential buyback of equity shares. Details on the buyback price and amount will be released after the board meeting.
In the first quarter of fiscal year 2024, Nucleus Software saw a 5.5% drop in consolidated revenue, falling to ₹195.4 crore. The company’s net profit also fell sharply by 43.66% to ₹30.2 crore compared to the previous year.
Vishnu R Dusad, Co-Founder and Managing Director, mentioned that the company is focusing on implementing lean principles in product development and other functions for the first quarter of FY 2024-25.
Nucleus Software provides fintech solutions to over 200 banks and financial institutions in more than 50 countries. It handles 2.6 crore transactions daily and manages $500 billion in loans in India and over $700 billion globally.
The company’s stock has risen over 38% in the last year but has dropped nearly 2% since the start of this year. The last buyback was in 2021 at ₹700 per share, and since then, the stock has increased by more than 69%. However, the June quarter saw declines in both revenue and profit, with the EBITDA margin decreasing to 14.8% from 27.7% a year earlier. The current order book stands at ₹813.4 crore.
