Key highlights from Nucleus Software Exports Limited (NUCLEUS) Q1 FY23 Earnings Concall
Q&A Highlights:
- Vaibhav Badjatya with HNI Investment asked about the number of employees for June ending. Anurag Mantri CFO replied that the associates count as of June 30 stands at 1,756.
- Vaibhav Badjatya of HNI Investment also asked about the reason for employee cost increasing a lot on a per employee basis. Anurag Mantri CFO answered that the company has taken significant steps to take good care of its employees. The company is also inducting a good number of freshers with both objectives to increase delivery capacity.
- Vaibhav Badjatya of HNI Investment enquired about the reason for delays in AMC contracts. Parag Bhise CEO answered that NUCLEUS has been working on AMC revisions with many of its customers. So since these are significant revisions, it’s taking time. NUCLEUS did not expect them to materialize in 1Q23.
- Vaibhav Badjatya of HNI Investment asked since the AMC contracts are not renewed, how the customers are currently serviced. Anurag Mantri CFO replied there is no impact on the service level. NUCLEUS has given renewed proposal with extended date as the revisions are significant.
- Samarth Singh of PPF Capital asked about pricing, if historically it has a price escalation YonY. Anurag Mantri CFO replied that the AMCs have that in-built clause but that primarily took the inflationary cost. Currently it’s about repositioning because of the value delivered and the significant increases in expense that have happened.
- Samarth Singh of PPF Capital also enquired if the AMC price escalation is only for FinnOne Neo or for the old legacy FinnOne product also. Anurag Mantri CFO clarified that the escalations are for the old products as well.