Newgen Software Tech's Q1 revenue increases 18% yoy to Rs188 crore; Stock plunges 3.3%

21 Jul 2022 , 09:23 AM

The management of Newgen Software Technologies Ltd has announced results for the quarter ended June 30, 2022 at its Board Meeting held on July 20, 2022.

Key Highlights for Q1 FY23 v/s Q1 FY22

Revenues stood at Rs188 crore (18% Q1 yoy growth).

Subscription Revenues increases at Rs71 crore (33% Q1 yoy growth)

Annuity Revenues is at Rs131 crore (25% Q1 yoy growth)

Speaking on the results, Diwakar Nigam, Chairman & Managing Director, Newgen Software Technologies Ltd. said, “FY23 has started on a positive note with revenue growth of 18% yoy with cloud and subscription revenues increased at 33% yoy during Q1FY23 and as per the seasonal nature of our business, this fiscal quarter is a lean quarter for us.

On the cost front, there has been an impact of increased employee costs and gradually normalizing travel expenses, however, Q1 margins are not a reflection of the year margins. We strongly believe that we have a resilient business model in place, with our products having remarkable leverage across both sides of the market opportunity which is revenue enhancement and cost optimization.”

“We continue to work on our long term cloud roadmap. We have enhanced NewgenONE with a cloud-native, multi-persona AI and data science platform”, said Virender Jeet, CEO, Newgen Software.

At around 9:23 AM, Newgen Software Technologies was trading at Rs350.35 per share down by Rs12.05 or 3.33% from its previous closing of Rs362.40 per share on the BSE.