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Newgen Software soars 14%, hits new high on strong September quarter result

The company said the healthy earnings were driven by strong growth in the banking and financial services segment across geographies

Newgen Software Tech

Newgen Software Tech logo | Source: Company

SI Reporter Mumbai

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Shares of Newgen Software Technologies hit a record high of Rs 1,060, soaring 14 per cent on the BSE in Tuesday's intraday trade, after the company reported strong September quarter (Q2-FY24) results with the consolidated net profit jumping 59 per cent to Rs 47.78 crore over the previous year quarter. The healthy earnings were driven by strong growth in the banking and financial services segment across geographies.

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The stock surpassed its previous high of Rs 1,000 touched on August 22, 2023. At 02:18 PM, it was quoting 13 per cent higher at Rs 1,048, as compared to 0.3 per cent gain in the S&P BSE Sensex.
 

In Q2-FY24, the company's revenue from operations grew 29.7 per cent to Rs 293.23 crore, as against Rs 226.11 crore in the year-ago quarter. Reported earnings before interest, taxes, depreciation, and amortisation (Ebitda) rose 59.3 per cent year-on-year to Rs 57.2 crore, while margins improved 290 bps to 19.5 per cent.

Newgen is the leading provider of a unified digital transformation platform with native process automation, content services, communication management, and AI/ML capabilities.

Newgen said it added 14 new customers logo during the quarter. A significant milestone, it said, was achieved with the recent order win worth Rs 68 crore from a leading public sector bank in India for the development and management of their complete Digital Business Platform. This is the largest order in terms of value for Newgen so far, ti said.

The company's focus on larger customers with bigger deal size, continuous development and innovation in product, and increasing overseas sales in new geographies would lead to further revenue growth over the medium-term, according to Crisil Ratings.

"The group had diversified geographical reach with a strong presence in more than 74 countries in fiscal 2023. The top 10 customers generated revenue of 25-30 per cent for fiscal 2023, and exports accounted for around 70 per cent of the topline. Diversity in geographic reach and clientele should continue to support the business," the rating agency said in rationale.
 
 
 
 
 
 


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First Published: Oct 17 2023 | 2:45 PM IST

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