Dolat Capital: Nucleus Software Exports Q1 Results Beat, Commentary Improves; Too Early To Call It New Normal
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Dolat Capital Report
Nucleus Software Exports Ltd. revenues stood at Rs 1.28 billion down 7% QoQ in line with our estimates. Performance was far better than the caution it shared in Q4 commentary.
Order book in product segment stood at Rs 4.04 billion, (flat QoQ, as well as YoY basis). Profitability surprised significantly as it improved 600 basis points QoQ at 26% (best ever) versus our estimate of 15%.
Profit after tax beat was extended (reported Rs 363 million, versus our estimate Rs 210 million) led by 30% QoQ jump in other income and lower effective tax rate of 21.8% (FY20: 23.8%).
Management commentary improved materially as it witnessed better bookings and have healthy pipeline across product offerings. However, management refrained to call it a new normal and expect a potential risk of trend reversing again.
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