The shares of Oracle Financial Services Software Limited [OFSS] witnessed a significant surge of 3% on Thursday following the company’s quarterly results announcement and its declaration of the highest dividend payout in a decade. The market responded positively to the news reflecting the confidence of investors in the company’s financial performance and its commitment to shareholder returns.
Highest Dividend Payout Since a Decade
After the announcement of the quarterly results, OFSS revealed a dividend of INR 240 per share, marking its highest dividend payout since 2014. During that year, the company had declared a dividend of INR 485 per share, the date for the interim dividend has been set for May 7, with the dividend scheduled to be paid on or before May 23, according to stock exchange filing.
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Consistent Dividend Growth
Over the past few years, Oracle Financial Services has demonstrated a consistent pattern of dividend growth, underscoring its stable financial performance and dedication to shareholder value. Last year, the corporation declared its dividend amount at INR 225 per share, as against INR 190 paid in the previous year and INR 200 in 2021. The company has approved a total dividend of INR 2,100 per share to its shareholders since 2014. Demonstrating its position as a highly credible investment opportunity.
Market Performance
At the current level of INR 7,470, unlike other stocks, Oracle Financial Services Software Limited has registered a decline of 1.5% from the daily high and still the shares continue to trade at the day’s high of INR 7,470. The stock is up more than 72% year to date (YTD), indicating that investors have quickly embraced the company’s new strategy with a positive response.
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Robust Financial Performance
About Oracle Financial’s March quarter report, it should be noted that the company should be pleased with the satisfactory 11.7% growth of the topline, which stood at INR 1,642.4 Cr. The nearly 23% decline in net profit to INR 560.1 Cr was only a minor blip in the company’s progress report. Other remaining factors were quite encouraging. EBIT margin then saw a slight increase, increasing 40 basis points to 44.7% from 44.3%, reflecting improved operating efficiency and similar cost management.
Positive Revenue Growth Across Segments
Revenue from IT services as well as licensing of products increased, in contrast to the situation in the same period last year. This growth reflects the firm’s ability to withstand economic turmoil and explore new opportunities.
