Nucleus Software Q1 Review - Ransomware, Supply Side Issues Dents Growth, Profit Margin: Dolat Capital
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Dolat Capital Report
Nucleus Software Exports Ltd. reported 12.4% QoQ decline in revenue at Rs 1.08 billion well below our estimate of 4.5% QoQ growth.
The Revenue decline was due to hyper attrition in the resources (10% of resources exited on net basis in Q1) and ransomware attack in last week of May, resulting in loss of days in some projects.
Nucleus Software to announce capital allocation policy by Q2 FY22.
Order book stood at Rs 5.3 billion up 11.9% QoQ (up 18.8% YoY basis).
The unusual increase in order book was due to lower revenue conversion and steady demand.
Product order book increased by 8.9% QoQ.
The company reported Ebit loss of Rs 14 million (Ebit margin: down 1.4%).
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