Newgen Software reports net profit of Rs22cr, up 137% yoy; stock ends lower

The sales of the company also rose 20.75% to Rs159.54cr in the quarter ended June 2021 as against Rs132.12cr during the previous quarter ended June 2020.

Jul 22, 2021 04:07 IST India Infoline News Service

Newgen Software
The net profit of Newgen Software Technologies jumped by 136.84% yoy to Rs21.60cr in the quarter ended June 2021 as against Rs9.12cr during the previous quarter ended June 2020.

The sales of the company also rose 20.75% to Rs159.54cr in the quarter ended June 2021 as against Rs132.12cr during the previous quarter ended June 2020.

Speaking about the results, Diwakar Nigam, Chairman & Managing Director, Newgen Software Technologies Ltd. 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.

The stock ended at Rs629.50 down by Rs33.1 or 5% from its previous closing of Rs662.60 on the BSE.

The scrip opened at Rs629.50 and touched a high and low of Rs629.50 and Rs629.50 respectively.

“We are excited to unveil our digital transformation platform—NewgenONE. 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,” Diwakar Nigam said.

Key Business Highlights (Q1 FY’22)
  • Key Analyst Recognitions: Positioned as a “Strong Performer” in The Forrester Wave: Content Platforms, Q2 2021, authored by Cheryl McKinnon et al.
  • 11 new customer logos wins in the quarter, notably in Middle East, APAC and UK regions.
  • Continous focus on R&D: 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
  • Granted a patent for an invention entitled “Online Collaborative Signing of Documents” for 20 years commencing from November 2010 by the Indian Patent Office. It aims at offering a solution for collaborative signing of documents with automatic verification of user device, user identity and user signatures
  • Granted a patent for an invention entitled “Method and System for Managing and Archiving Electronic Messages” for 20 years commencing from May 2009 by the Indian Patent Office. It aims at offering a solution for automated and efficient email archival, management and retrieval especially for business environments involving huge volumes of emails
  • Increasing cloud subscriptions: SaaS revenues witnessed a growth of 29% YoY contributing 9% to the revenues of the organization.
  • Accelerated performance in Banking & Financial Services, Government/PSU, and Healthcare verticals with increased demand for digital transformation initiatives.

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