Newgen Software slumps after Q1 PAT drops 59% QoQ

Newgen Software Technologies hit a lower circuit of 5% at Rs 662.60 after the company's' consolidated net profit declined 59% to Rs 216 crore on 20.2% decline in revenue from operations to Rs 1,595 crore in Q1 FY22 over Q4 FY21.

Annuity revenues (ATS/AMC, Support, and SaaS) were at Rs 104.8 crore (up 2.9% QoQ) while subscription revenues (ATS/AMC and SaaS) were at Rs 53.7 crore (up 2.7% QoQ) in Q1 FY21.

Revenue from sale of products/license were at Rs 27.9 crore (down 40.6% QoQ) in the first quarter. Implementation & digitization revenues were at Rs 26.8 crore (down 47.7% QoQ) in Q1 FY21.

EBITDA declined by 65.7% to Rs 228 crore in Q1 FY22 from Rs 664 crore in Q4 FY21.

Diwakar Nigam, chairman & managing director, Newgen Software Technologies, said - "We are pleased to announce a robust growth quarter. We witnessed accelerated and broad based growth in revenues and profits. Revenues were up by 21% and Profit after tax was up by 137% in Q1 compared to the same period last year. As the markets are opening up, we hope to maintain the growth momentum. We continue to put efforts in growing our annuity based revenues which witnessed a growth of 20% Q1 YoY.

We are excited to unveil our digital transformation platformNewgenONE. NewgenONE is a comprehensive low-code platform for process automation with integrated content services, and communication management. NewgenONE simplifies complex enterprises wide business processes and information for superior employee and customer experiences.

We have enhanced our relationships with system integrators through exemplary customer cases and success stories in our joint target markets. This segment is expected to be a key growth engine of our revenues in the medium term."

The company was granted two additional patents in the areas of content management during the quarter taking the total patent grants to 20 in India and the US.

Newgenis the leading provider of a unified digital transformation platform with native process automation, content services, and communication management capabilities.

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