Shares of Newgen Software Technologies, a computer software and consulting company, dropped by 17% to a low of Rs 1294.6 on the BSE, even though they shared strong results for the third quarter. Their profit after tax (PAT) rose to Rs 89 crore, a 30% increase compared to last year’s Rs 68 crore. The company’s revenue grew by 18% year-on-year, reaching Rs 381 crore.
For the first nine months of the financial year, Newgen Software saw its PAT jump by 41% to Rs 146 crore, and their revenue climbed by 22% to Rs 1,057 crore. The company’s growth was strong in important markets like APAC (up 44%), EMEA (up 19%), India (up 10%), and the US (up 13%).
Newgen Software closed notable deals, including a Rs 32 crore agreement with the Reserve Bank of India for a Regulatory Management System, and a USD 2.3 million deal with a major power company in Saudi Arabia, which is about Rs 19 crore. They also secured a Rs 24 crore agreement with Aye Finance for a loan solution in India.
Diwakar Nigam, the Chairman and Managing Director, noted that license revenues grew by 70% year-on-year during Q3, showcasing strong business growth, especially in the Banking and Government sectors. The company has also been recognized in the Gartner Magic Quadrant™ for Enterprise Low-Code Application Platforms for the fifth time in a row.
In the past year, Newgen Software shares returned 59.56% to investors, with a 30.4% gain in the last six months, and a 3.6% rise in the last three months
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