Shares of Newgen Software Technologies have moved higher by 13% to Rs 346 per share on BSE in an otherwise weak market.
The stock of IT consulting & software firm is trading at its highest level since listing on January 29 this year. In past one week, it has rallied 35%, as compared to a 1.4% rise in the S&P BSE Sensex.
In past one month, the stock zoomed 51% after it reported a more-than-double consolidated net profit in September quarter (Q2FY19). In comparison, the benchmark index gained 4.4% during the same period.
Newgen Software Technologies posted a profit of Rs 178 million in Q2FY19 against Rs 63 million during the corresponding quarter of previous fiscal. Revenue from operations grew 26% to Rs 1.50 billion from Rs 1.19 billion in the previous year quarter.
Ebitda (earnings before interest, tax, depreciation and amortization) margin expanded 660 basis points (bps) to 13.9%, with increasing scale and favourable currency movement. The company added 22 new customer logos during the quarter, including 5 new wins in the US region.
The company said software license business is usually seasonal in nature primarily given the large enterprise account buying patterns leading to substantial revenues and profits booked in the second half of the financial year.
"First quarter is usually the leanest with enhancement in revenues and profits in each subsequent quarter of a financial year. Growth in profitability was on account of lower base in previous year and favourable currency movement,” it said.
Newgen Software Technologies is a provider of business process management, enterprise content management and customer communication management platforms with large, mission-critical solutions deployed at world’s leading banks, governments, BPO’s & IT companies, insurance firms and healthcare organizations.