ATS Company Reports: Nucleus software Access Company Reports here: http://www.adityatrading.in/Research-Reports.aspx

2. Company Profile
Nucleus Software Exports Limited, is a software comapny providing efficient and cutting edge software solutions for the Banking
and Financial Services industry across the globe. For over 27 years, the company have been developing pioneering solutions
that span from Retail Banking to Corporate Banking to Cash Management to Internet Banking.
The extensive portfolio includes FinnOneTM, the Flagship product of Nucleus Software. Awarded the Global No 1 Lending
product for 6 consecutive years (IBS Publishing), FinnOneTM is a comprehensive suite providing solutions both on the asset and
the liability aspects, core financial accounting and customer service. Some of the modules are Customer Acquisition System,
Loan Management, Delinquency and Recovery Management, Deposits and Finance against Securities. The customers for
FinnOneTM include Banks, Financial Institutions, Captive auto and retail finance companies.
FinnAxia (A Transaction Banking Product Suite) is a comprehensive web enabled solution from Nucleus Software that caters
solves business challenges of players in the area of Cash Management and Transaction banking enabling them to offer their
customers a seamless experience. BankONetTM is the Business Internet banking front end Across Retail Consumer, Corporate
and Islamic banking businesses, Nucleus Software has aligned development teams, business experts and testing & QA teams
who are spending time and efforts in understanding the market challenges and coming up with tailored solutions that cater to
specific challenges of our customers.
Nucleus Software is well equipped to serve customers globally through its sales presence across geographies including Europe,
US, Asia and Middle East.
Nucleus Software has been a pioneer in the Indian software product industry for almost two decades and is committed to
delivering end-to-end solutions and help its customers get to market faster. We have extremely strong relationships with our
customers. The success stories spread across 50 countries across the globe and going forward, we will continue working on
expanding our base in new/select markets.
The current market capitalization stands at Rs 568.50 crore. The company has reported a consolidated sales of Rs 85.98 crore
and a Net Profit of Rs 19.57 crore for the quarter ended Dec 2014.

3. Category No. of Shares Percentage
Promoters 19,631,866 60.62
General Public 7,450,241 23.01
Foreign Institutions 2,766,918 8.54
NBFC and Mutual Funds 938,570 2.90
Other Companies 873,670 2.70
Foreign - NRI 603,158 1.86
Others 76,383 0.24
Financial Institutions 42,918 0.13
Market Cap (Rs Cr) – 568.5
Company P/E – 11.16
Industry P/E – 24.55
Book Value (Rs) – 109.81
Dividend (%) – 60 %
EPS (TTM) – 15.72
Dividend Yield (%) – 3.42 %
Face Value (Rs) - 10
Share Holding Pattern Financial Details

4. Industry Information
The Indian IT and Information Technology enabled Services (ITeS) sectors go hand-in-hand in every aspect.
The industry has not only transformed India's image on the global platform, but also fuelled economic growth
by energizing the higher education sector (especially in engineering and computer science). The industry has
employed almost 10 million Indians and, hence, has contributed significantly to social transformation in the
country.
India is one of the fastest-growing IT services markets in the world. It is also the world's largest sourcing
destination, accounting for approximately 52 per cent of the US$ 124-130 billion market. The country's cost
competitiveness in providing IT services continues to be its USP in the global sourcing market.
India has the potential to build a US$ 100 billion software product industry by 2025, according to Indian
Software Product Industry Roundtable (iSPIRT).
The Indian IT-BPM industry is expected to add revenues of US$ 13-14 billion to the existing revenues by
FY15, according to National Association of Software and Services Companies (NASSCOM).The industry grew
at a compound annual growth rate (CAGR) of 13.1 per cent during FY08-13.Total exports from the IT-BPM
sector (excluding hardware) were estimated at US$ 76 billion during FY13. Export of IT services has been the
major contributor, accounting for 57.9 per cent of total IT exports (excluding hardware) in FY13. BPM
accounted for 23.5 per cent of total IT exports during the same fiscal. The IT outsourcing sector is expected to
see exports growing by 13-15 per cent during FY15.
The data centre infrastructure market of India is estimated to reach US$ 2.03 billion in 2015, a 5.4 per cent
increase from US$ 1.92 billion in 2014. According to data released by the Department of Industrial Policy and
Promotion (DIPP), the computer software and hardware sector attracted foreign direct investment (FDI) worth
US$ 13,238.58 million between April 2000 and September 2014.

5. Balance Sheet
Mar '14 Mar '13 Mar '12 Mar '11 Mar '10
Sources Of Funds
Total Share Capital 32.39 32.39 32.38 32.38 32.37
Equity Share Capital 32.39 32.39 32.38 32.38 32.37
Share Application Money 0.00 0.00 0.02 0.22 0.35
Reserves 323.22 287.09 260.21 238.28 200.24
Networth 355.61 319.48 292.61 270.88 232.96
Total Debt 0.00 0.00 0.00 0.00 0.00
Total Liabilities 355.61 319.48 292.61 270.88 232.96
Mar '14 Mar '13 Mar '12 Mar '11 Mar '10
Application Of Funds
Gross Block 90.48 79.22 87.29 85.63 88.99
Less: Accum. Depreciation 46.55 46.09 56.35 51.46 48.39
Net Block 43.93 33.13 30.94 34.17 40.60
Capital Work in Progress 1.26 0.00 0.00 0.00 0.00
Investments 226.38 164.12 116.66 139.85 100.35
Inventories 0.00 4.95 0.00 0.00 0.00
Sundry Debtors 31.93 57.29 77.74 26.13 46.57
Cash and Bank Balance 71.99 90.47 3.08 6.15 5.13
Total Current Assets 103.92 152.71 80.82 32.28 51.70
Loans and Advances 84.63 64.80 72.40 75.57 53.63
Fixed Deposits 0.00 0.00 70.66 40.34 38.65
Total CA, Loans & Advances 188.55 217.51 223.88 148.19 143.98
Current Liabilities 67.43 69.95 56.36 30.50 32.34
Provisions 37.08 25.34 22.50 20.81 19.62
Total CL & Provisions 104.51 95.29 78.86 51.31 51.96
Net Current Assets 84.04 122.22 145.02 96.88 92.02
Total Assets 355.61 319.47 292.62 270.90 232.97
Contingent Liabilities 3.63 6.61 0.49 0.18 0.18
Book Value (Rs) 109.81 98.65 90.35 83.58 71.86

6. Profit and Loss Account
Mar '14 Mar '13 Mar '12 Mar '11 Mar '10
Income
Sales Turnover 241.11 202.28 204.85 199.55 194.15
Net Sales 241.11 202.28 204.85 199.55 194.15
Other Income 29.94 23.99 22.14 30.46 6.78
Total Income 271.05 226.27 226.99 230.01 200.93
Expenditure
Power & Fuel Cost 3.89 3.40 2.96 2.20 0.39
Employee Cost 124.80 117.58 115.90 21.77 15.76
Other Manufacturing Expenses 17.00 8.14 17.31 130.96 125.67
Selling and Admin Expenses 0.00 0.00 32.95 12.77 7.89
Miscellaneous Expenses 50.49 42.19 8.52 5.92 2.89
Total Expenses 196.18 171.31 177.64 173.62 152.60
Operating Profit 44.93 30.97 27.21 25.93 41.55
PBDIT 74.87 54.96 49.35 56.39 48.33
Interest 0.35 0.30 0.22 0.22 0.27
PBDT 74.52 54.66 49.13 56.17 48.06
Depreciation 6.76 4.97 6.10 8.10 9.80
Profit Before Tax 67.76 49.69 43.03 48.07 38.26
Extra-ordinary items 0.00 0.00 -0.09 -0.14 1.49
PBT (Post Extra-ord Items) 67.76 49.69 42.94 47.93 39.75
Tax 12.67 12.59 10.30 2.18 5.98
Reported Net Profit 55.09 37.09 32.64 45.76 33.74
Total Value Addition 196.18 171.32 177.64 173.62 152.60
Equity Dividend 19.43 9.72 8.10 8.10 8.09
Corporate Dividend Tax 1.71 1.16 0.73 -0.01 0.15
Per share data (annualised)
Shares in issue (lakhs) 323.84 323.84 323.83 323.83 323.70
Earning Per Share (Rs) 17.01 11.45 10.08 14.13 10.42
Equity Dividend (%) 60.00 30.00 25.00 25.00 25.00

7. Dividend and Bonus History

8. Index and Company Comparison

9. PBIT – 14.08 v/s 11.48
RoCE – 19.15 v/s 15.64
RoE – 16.32 v/s 12.12
Net Profit Margin – 20.32 v/s 16.39
Return on net worth – 15.49 v/s 11.6
D/ E Ratio – Nil
Interest Cover – 194.6 v/s 167.28
Current Ratio – 1.8 v/s 2.28
Reserves – 323.22 cr v/s 287.09 cr
PAT – 55.09 cr v/s 37.09 cr
Total assets – 355.61 cr v/s 319.47 cr
Net sales – 241.11 cr v/s 202.28 cr
Book Value – 109.81 v/s 98.65
Days BSE NSE
30 191.80 191.61
50 195.30 195.22
150 210.17 210.06
200 209.81 209.73
Important Ratios Simple Moving Average

10. Recommendations
Buy Nucleus Software Ltd at current or
lower market levels
Reasons for the recommendations are :
Sound financial position and healthy ratios
Availability of top in the industry products and clients.
Huge difference in profit margins when compared with its peers.
Zero debt company.
Launch of new products will add to the sales.
Growth in the banking industry and higher exchange rates will increase profits.
Availability of reserves and quick cash flow.