Banking software maker Oracle Financial Services Software, formerly known as iflex, reported strong year-on-year numbers characterized by robust revenue growth and strict control over costs, however revenue slipped on a sequential basis.

Consolidated revenue for the quarter was Rs. 1190 Crore, up 12% compared to quarter ended September 30, 2016 and down 1% compared to the immediately preceding quarter.

“As compared to corresponding quarter of the last financial year, this quarter’s license revenue doubled; license signings in the quarter grew 72% and operating income from the products business grew 40%,” said Chet Kamat, Managing Director and CEO of Oracle Financial Services.

Being a product-driven company, Oracle’s revenues are not strictly comparable on a quarter on quarter basis, and must be seen on a year-on-year basis.

Despite growing 12% in turnover, the company kept a strict watch over expenses, which declined to 692 cr from 700 cr last year and 695 cr in the previous quarter than ended in June.

Key elements of the decline in costs were ‘other operating expenses’ — which fell to 50 cr from 55 cr — and depreciation and amortization costs — which fell to 16 cr from 18 cr.

“We maintained the strong operating performance like the previous quarter with the operating margin at 42%. The quality of our receivables improved significantly with easing of exchange restrictions particularly in Egypt,” said Makarand Padalkar, Chief Financial Officer.

Due to lower expenses, operating profit rose 36% to Rs. 498 crore. On a sequential basis, it was down 2%.

Net profit of Rs 342 cr was up 17% compared to the year before. On a sequential basis, net profit fell 7%.

The company gets 90% of its revenue from selling banking software and bundled services.

This division had revenue of 1037 Crore, up 16% year-over-year, and the operating margin for the quarter was 49%.

“We are pleased with the strong all round performance of our Products Business,” Kamat said.

“We continue to witness an increased demand for our banking solutions as financial institutions around the globe are engaged in transformative initiatives.”

The IT services business, which is not something that the company focuses on, posted quarterly revenue of Rs. 123 Crore, down 10% year-over-year and the operating margin was 9%.

Business Highlights e The Company signed new license deals of $19 million this quarter. During the quarter, the Company signed customers in India, Canada, Mexico, Palestine, Serbia, Taiwan, Vietnam, U.K. and the U.S..

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