Newgen Software spurts 9% after reporting revenues of Rs155cr up 17% qoq

The net profit of the company stood at Rs29.2cr in Q2FY21, up 220% qoq.

Oct 21, 2020 03:10 IST India Infoline News Service

Newgen Software Limited consolidated revenue from operations stood at Rs155cr as compared to Rs155cr in Q2FY20 (up 0.7% yoy, 17% qoq). Annuity revenue streams (ATS/AMC, Support, and Cloud/SaaS) witnessed a growth of 8% yoy (12% qoq) and reached Rs97.8cr improving long-term visibility of the business.

Revenue from Sale of Products/License were at Rs26.4cr and implementation and digitization revenues were at Rs30.8cr. EBIDTA up by 350% yoy at Rs41.1cr compared to Rs 9.1cr in Q2FY20. Profit after tax up by 592% yoy at Rs29.2cr from Rs4.2cr in Q2FY20 based on strong cost rationalization initiatives undertaken by the company.

“We are happy to announce good results this quarter. We witnessed demand uptick from our existing customers and new customers with successful remote execution, achieving highly profitable operations.

Going forward, we see a definite shift towards digital transformation, using low code development and cloud platforms. We have been recognized for the first time, in Gartner’s Magic Quadrant for Enterprise Low-Code Application Platforms. Newgen’s platform enables rapid application development and offers scalability and agility to an enterprise,” Diwakar Nigam, Chairman and Managing Director, Newgen Software Technologies Ltd, said.

Newgen Software Technologies Ltd is currently trading at Rs246, up by Rs20.65 or 9.16% from its previous closing of Rs225.35 on the BSE.

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