Firstcall India Equity Advisors recommends `Buy` on Oracle Financial Services Software with a price target of Rs 2,615 as against the current market price (CMP) of Rs 2,286 (Nov. 18, 2009).

The broking house said, Oracle Financial (Q,N,C,F)* Services Software, a majority owned subsidiary of Oracle, reported a phenomenal rise in standalone net profit for the quarter ended September 2009.

During the quarter, the profit of the company rose 54.44% to Rs 1,718.10 million from Rs 1,112.50 million in the same quarter last year.

Net sales declined marginally 1.50% to Rs 5,366 million, while total income for the quarter fell marginally 1.50% to Rs 5,365.90 million, when compared with the prior year period. Company posted earnings of Rs 20.51 a share during the quarter, registering 54.44% growth over previous year period.

During the quarter, the operating margin of the company rose to 45.02% compared with 19.89% in the previous year period. Interest cost decreased 52.90% to Rs 235.50 million while depreciation cost fell 4.35% to Rs 101.10 million over previous year period.

Oracle Financial Services Software (formerly i-flex solutions) is a leading provider of applications and professional services for the financial services industry. Oracle Financial Services portfolio of offerings includes Oracle FLEXCUBE, a complete banking product suite for retail, consumer, corporate, investment, and asset management, and investor servicing.

During the quarter company added 12 customers while 20 customer projects went `live` with successful deployment of their products. A leading global bank licensed Oracle FLEXCUBE Messaging Hub to create a Trade Services Utility to enhance services to their customers.

During the quarter company launches a new release of Oracle Mantas Fraud to manage financial crime and fraud. A leading multi-national bank signed for Consulting Services in Japan.

During the quarter Q2FY10 company unveils new revenue management suite for banks. The topline of the company is expected to grow at a CAGR of 11% over FY08 to FY11E.