ORACLE FINANCIAL SERVICES SOFTWARE LTD Result Update (CONSOLIDATED BASIS): Q3 FY16. Index Details SYNOPSIS CMP: 3561.

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1 ORACLE FINANCIAL SERVICES SOFTWARE LTD Result Update (CONSOLIDATED BASIS): Q3 FY16 Index Details Stock Data Sector IT Consulting & Services BSE Code Face Value wk. High / Low (Rs.) / Volume (2wk. Avg.) 2849 Market Cap (Rs. in mn.) Annual Estimated Results(A*: Actual / E*: Estimated) YEARS FY15A FY16E FY17E Net Sales EBITDA Net Profit EPS P/E Shareholding Pattern (%) As on Dec 2015 As on Sep 2015 PROMOTER PUBLIC OTHERS Year Comparative Graph ORACLE FINANCIAL SERVICES SOFTWARE LTD S&P BSE SENSEX CMP: APRIL 11, 2016 Overweight SYNOPSIS ISIN: INE881D01027 Oracle Financial Services Software Limited is a world leader in providing products (appl ications) and professional services to the financial services industry. During Q3 FY16, net profit jumps to Rs mn against Rs mn in the corresponding quarter ending of previous year, an increase of 15.95%. Nets Sales for the quarter rose by 8.76% to Rs mn from Rs mn, when compared with the prior year period. During Q3 FY16, EBIDTA is Rs mn as against Rs mn in the corresponding period of the previous year. Profit before tax (PBT) at Rs mn in Q3 FY16 compared to Rs mn in Q3 FY15, registered a growth of 19.48%. EPS of the company stood at Rs a share during the quarter, registering 15.62% increase over previous year period. The company signed new license deals amounting to US$ 23 million during the quarter. During the qaurter, 21 customers completed their deployement of Oracle Financial services products. One of the largest bank holding companies in korea has selected oracle anti- money Laundering to support its risk management operations. Net sales registered a growth of 4.22% of Rs mn for nine months end of FY16 as compared to Rs mn for nine months end of FY15. For the end of 9M FY16, Net Profit Stood at Rs mn compared to Rs mn for the end of 9M FY15. Net Sales and PAT of the company are expected to grow at a CAGR of 6% each over 2014 to 2017E respectively. PEER GROUPS CMP MARKET CAP EPS P/E (X) P/BV(X) DIVIDEND Company Name (Rs.) Rs. in mn. (Rs.) Ratio Ratio (%) Oracle Financial Services Software Ltd Tata Consultancy Services Ltd SQS India BFSI Ltd Persistent Systems Ltd

2 QUARTERLY HIGHLIGHTS (CONSOLIDATED BASIS) Results updates- Q3 FY16, Months Dec-15 Dec-14 % Change Net Sales Net Profit EPS EBITDA The company has achieved a Net Sales of Rs million for the 3 rd quarter of the financial year 2016 as against Rs million in the corresponding quarter of the previous year. EBITDA of Rs million in Q3 FY16 and increase of 12.38% against the corresponding period of last year. In Q3 FY16, net profit of Rs million compared to Rs million in Q3 FY15. The company has reported an EPS of Rs for the 3 rd quarter as against an EPS of Rs in the corresponding quarter of the previous year. Break up of Expenditure Break up of Expenditure Employees Benefit Expenses Value in Rs. Million Q3 FY16 Q3 FY15 % Chng % Travel related Expenses % Professional fees % Other Expenses % Depreciation & Amortization %

3 Segment Revenue Result Updates The company signed new license deals amounting to US$ 23 million during the quarter. The customers for the quarter, who are deploying Oracle Financial Services Solutions span across variious regions around the globe including Australia, Egypt, Hungary, Kenya, Korea, Mynmar, New Zealand, Pakistan, Saudi Arabia, South Africa, Taiwan and the United States. 21 customers completed their deployement of Oracle Financial services products during the qaurter. One of the largest bank holding companies in korea has selected oracle anti- money Laundering to support its risk management operations. Oracle moved up to #4 on the Charitis Risk Tech 100 CharitiesResearch also named Oracle as Top Vendor in the 105 Risk Data Aggrgation and Reporting and Category leader in the One of the largest and fastest growing Islamic banks in pakistan that offers a wide range of Shariah Analytical banking products and services to its customers has sletected Oracle Financial Services Analytical Applications to support its overall risk managment and compliance.

4 COMPANY PROFILE Oracle Financial Services Software Limited (referred to as "Oracle Financial Services Software") is a world leader in providing products and services to the financial services industry and is a majority owned subsidiary of Oracle. Oracle Corporation is the world s largest enterprise software company. With more than 420,000 customers and deployments in more than 145 countries, Oracle offers a comprehensive and fully integrated stack of cloud applications, platform services, and engineered systems. Oracle Financial Services Software (formerly i -flex solutions) is a leading provider of applications and professional services for the financial services industry. Its portfolio of offerings includes Oracle FLEXCUBE, a complete banking product suite for retail, consumer, corporate, investment, and asset management, and investor servicing. As a part of Oracle's analytics for the financial services industry Oracle Reveleus offers a suite of analytical applications for capital adequacy, stress testing, multi-jurisdictional Basel II compliance, enterprise performance management, and customer insight, and helps institutions address their enterprise risk and compliance needs. Oracle Mantas is the industry's most comprehensive solution for anti-money laundering, fraud detection, and trade compliance. The company has partnership with the following companies: AMD IBM Apple Intel Cisco Microsoft Dell Motorola EMC NetApp Fujitsu Sun Microsystems HP

5 FINANCIAL HIGHLIGHT (CONSOLIDATED BASIS) (A*- Actual, E* -Estimations & Rs. In Millions) Balance Sheet as at March 31, E FY14A FY15A FY16E FY17E SOURCES OF FUNDS Shareholder's Funds Share Capital Share application money pending allotment Reserves and Surplus Sub Total - Net worth Non Current Liabilities Long term borrowings Deferred Tax Liabilities Other Long term Liabilities Long Term Provisions Sub Total - Non Current Liabilities Current Liabilities Short term borrowings Trade Payables Other Current Liabilities Short Term Provisions Sub Total - Current Liabilities Total Liabilities (1+2+3) APPLICATION OF FUNDS Non-Current Assets Fixed Assets Tangible assets Intangible assets Capital work-in-progress a) Sub Total- Fixed Assets b) Deferred tax Assets c) Long Term Loans and Advances d) Other non Current Assets Sub Total - Non Current Assets Current Assets Trade receivables Cash and Bank Balances Short-terms loans & advances Other current assets Sub Total - Current Assets Total Assets (1+2)

6 Annual Profit & Loss Statement for the period of 2014 to 2017E Value(Rs.in.mn) FY14A FY15A FY16E FY17E Description 12m 12m 12m 12m Net Sales Other Income Total Income Expenditure Operating Profit Interest Gross profit Depreciation Exceptional Items Profit Before Tax Tax Net Profit Equity capital Reserves Face value EPS Quarterly Profit & Loss Statement for the period of 30 th June, 2015 to 31 st Mar, 2016E Value(Rs.in.mn) 30-Jun Sep Dec Mar-16E Description 3m 3m 3m 3m Net sales Other income Total Income Expenditure Operating profit Interest Gross profit Depreciation Exceptional Items Profit Before Tax Tax Net Profit Equity capital Face value EPS

7 Ratio Analysis Particulars FY14A FY15A FY16E FY17E EPS (Rs.) EBITDA Margin (%) 55.41% 48.63% 47.57% 49.26% PBT Margin (%) 53.49% 46.89% 45.73% 47.92% PAT Margin (%) 36.33% 30.53% 29.69% 30.72% P/E Ratio (x) ROE (%) 15.49% 34.62% 27.15% 25.26% ROCE (%) 24.44% 57.11% 44.70% 41.61% EV/EBITDA (x) Book Value (Rs.) P/BV Charts

8 OUTLOOK AND CONCLUSION At the current market price of Rs , the stock P/E ratio is at x FY16E and x FY17E respectively. Earning per share (EPS) of the company for the earnings for FY16E and FY17E is seen at Rs and Rs respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 6% each over 2014 to 2017E respectively. On the basis of EV/EBITDA, the stock trades at x for FY16E and x for FY17E. Price to Book Value of the stock is expected to be at 6.71 x and 5.72 x for FY16E and FY17E respectively. Hence, we say that, we are Overweight in this particular scrip for Medium to Long term investment. INDUSTRY OVERVIEW India is the world's largest sourcing destination for the information technology (IT) industry, accou nting for approximately 67 per cent of the US$ billion market. The industry employs about 10 million workforce. More importantly, the industry has led the economic transformation of the country and altered the perception of India in the global economy. India's cost competitiveness in providing IT services, which is approximately 3-4 times cheaper than the US, continues to be the mainstay of its unique selling proposition (USP) in the global sourcing market. However, India is also gaining prominence in terms of intellectual capital with several global IT firms setting up their innovation centres in India. The IT industry has also created significant demand in the Indian education sector, especially for engineering and computer science. The Indian IT and ITeS industry is divided into four major segments IT services, business process management (BPM), software products and engineering services, and hardware. The IT-BPM sector in India grew at a Compound Annual Growth rate (CAGR) of 15 per cent over , which is 3-4 times higher than the global IT-BPM spend, and is estimated to expand at a CAGR of 9.5 per cent to US$ 300 billion by Market Size The Indian Information Technology (IT) sector is expected to grow 11 per cent per annum and triple it s current annual revenue to reach US$ 350 billion by FY 2025, as per National Association of Software and Services Companies (NASSCOM). India, the fourth largest base for new businesses in the world and home to over 3,100 tech start-ups, is set to increase its base to 11,500 tech start-ups by 2020, as per a report by NASSCOM and Zinnov Management Consulting Pvt Ltd.

9 India s internet economy is expected to touch Rs 10 trillion (US$ billion) by 2018, accounting for 5 per cent of the country s gross domestic product (GDP), according to a report by the Boston Consulting Group (BCG) and Internet and Mobile Association of India (IAMAI). India s internet user base reached over 350 million by June 2015, the third largest in the world, while the number of social media users grew to 143 million by April 2015 and smartphones grew to 160 million. Public cloud services revenue in India is expected to reach US$ 838 million in 2015, growing by 33 per cent year-on-year (y-o-y), as per a report by Gartner Inc. In yet another Gartner report, the public cloud market alone in the country was estimated to treble to US$ 1.9 billion by 2018 from US$ 638 million in Increased penetration of internet (including in rural areas) and rapid emergence of e-commerce are the main drivers for continued growth of data centre co-location and hosting market in India. Road Ahead India is the topmost offshoring destination for IT companies across the world. Having proven its capabilities in delivering both on-shore and off-shore services to global clients, emerging technologies now offer an entire new gamut of opportunities for top IT firms in India. Social, mobility, analytics and cloud (SMAC) are collectively expected to offer a US$ 1 trillion opportunity. Cloud represents the largest opportunity under SMAC, increasing at a CAGR of approximately 30 per cent to around US$ billion by The social media is the second most lucrative segment for IT firms, offering a US$ 250 billion market opportunity by The Indian e-commerce segment is US$ 12 billion in size and is witnessing strong growth and thereby offers another attractive avenue for IT companies to develop products and services to cater to the high growth consumer segment.

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