The management of Newgen Software Technologies Ltd. announced results for the quarter ended September 30, 2023 at its Board Meeting held on October 17, 2023.
Key Highlights- Q2 FY’24 Revenue
Rs 293 Cr (30% YoY growth)
PAT Rs 48 Cr (59% YoY growth)
New Logo Wins 14
Speaking about the results, Diwakar Nigam, Chairman & Managing Director, Newgen Software Technologies Ltd. said – “We continue to build upon the business momentum with four consecutive high growth quarters now. We witnessed a strong Q2 performance with 30% YoY revenue growth and margin expansion compared to same quarter last year.
We have been making deeper penetration through our Digital Lending Platform in the banking sector and have received high value orders during the quarter as market activity picks up in this segment across different geographies. We are becoming a preferred and trusted platform in the banking ecosystem for accelerating their business. We are further working on expanding our market footprint through opening of new offices.
“Using Newgen’s Low Code Platform based on a modern architecture of microservices and AI/ML, we continue to innovate for customers making our solutions more efficient, productive, and collaborative.” said Virender Jeet, CEO, Newgen Software.
Key Consolidated Financial Highlights (Q2 FY’24) Revenue from operations (consolidated) at Rs 293 crores as compared to Rs 226 crores in Q2 FY’23, up 30% Q2 YoY driven by strong growth in banking and financial services across geographies.
- Total annuity revenue streams (ATS/AMC, support, cloud/SaaS and subscription license) at Rs 179 crores, with strong growth in Support revenues. Subscription revenues (ATS/AMC, cloud and subscription license) were at Rs 90 crores.
- Revenue from implementation grew by 82% Q2 YoY to reach Rs 62 crores.
Profit after tax at Rs 48 crores up 59% from Rs 30 crores in Q2 FY’23.
Net Cash from Operating activities at Rs 146 crores for the six-month period ending September 30, 2023.
Key Business Highlights (Q2 FY’24)
- Honoured with the prestigious Mahatma Award for Social Good and Impact towards Quality Education
- Key Customer Orders
- Significant milestone achieved with the recently announced order of Rs 68 crores from a leading public sector bank in India for development and management of their complete Digital Business Platform. This is the largest order in terms of value for Newgen so far
- Working with one of the largest banks in India for their Agri-Lending Solution
- Fortified relationships and expanded business with existing customers in EMEA region especially in Saudi Arabia. Undertaking a large project for a specialized finance company under Central Bank of Saudi Arabia for Digital Lending
- Executing a digital transformation project for Business Banking Loan originations for a leading private sector bank in Egypt
- Added a significant new logo in Americas region - a leading global analytics and technology provider to the insurance industry, for our Content Management offering on cloud
- 14 new customer logo additions in the quarter
- Established new offices in New York (United States of America) and Riyadh (Kingdom of Saudi Arabia) to expand footprint in the US and Middle East market
- Newgen and Coforge Ltd., a global digital services and solutions provider, elevated their partnership to deliver transformative insurance lifecycle management solutions
- Newgen’s Accounts Payable solution recognized in the Gartner “Market Guide for Accounts Payable Invoice Automation 2023 Report.
- CRISIL reaffirmed the short-term rating of CRISIL A1 for debt instruments/facilities of the Company
Newgen is the leading provider of a unified digital transformation platform with native process automation, content services, communication management, and AI/ML capabilities. Globally, successful enterprises rely on Newgen’s industry-recognized low code application platform to develop and deploy complex, content-driven, and customer-engaging business applications on the cloud. From onboarding to service requests, lending to underwriting, and for many more use cases across industries, Newgen unlocks simple with speed and agility.
For more details, visit www.newgensoft.com
This press release may contain certain forward looking statements concerning Newgen Software Technologies’ future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth and new business opportunities, competition (both domestic and international), economic growth in India and the target countries for business, ability to attract and retain highly skilled professionals, time and cost over runs on projects, our ability to manage our international operations, government policies, interest and other fiscal costs generally prevailing in the economy. Past performance may not be indicative of future performance. The company does not undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the company.