Newgen Software Technologies records 34% revenue surge in Q1FY24
Newgen Software Technologies Ltd. unveiled its Q1 FY2024 financial results on July 19, 2023, demonstrating strong growth with a revenue of Rs 252 crore, a 34% increase compared to the same quarter last year.
The company’s Profit after Tax (PAT) also showed a remarkable leap of 57% YoY, settling at Rs 30 crore. These results underscore the highest quarterly YoY revenue growth rate for the company in the last five years.
Newgen Software Technologies’ total income for the quarter amounted to Rs 264 crore, marking a 33% growth YoY. The revenue from operations on a consolidated basis reached Rs 251.7 crore, a significant rise of 34% from Rs 187.9 crore in Q1 FY’23.
The company reported that its subscription revenues, including ATS/AMC, cloud, and subscription license, were up 24% Q1 YoY at Rs 88.6 crore. Total annuity revenue streams, encompassing ATS/AMC, support, cloud/SaaS, and subscription license, contributed 67% to revenues at Rs 167.8 crore. In addition, revenue from product/license sales enjoyed a robust quarter with an increase of 1.9 times YoY, reaching Rs 42.1 crore.
The company’s PAT at Rs 30.2 crore, saw an impressive surge of 57% from Rs 19.2 crore in Q1 FY’23. Net Cash from Operating activities for the period stood at Rs 57 crore.
Among the key customer orders Newgen Software Technologies secured during the quarter were providing a digital account opening solution for a private bank in the Americas, lending origination and management solution to a major business group in Saudi Arabia, and trade and supply chain finance solution to a leading financial institution in the UAE.
The company witnessed broad-based growth across all regions with APAC market recording a 46% growth and EMEA, US, and India markets reporting growth of 38%, 36%, and 25% respectively.
Chairman & Managing Director, Diwakar Nigam, expressed satisfaction over the robust growth across all geographies and highlighted opportunities for digital journeys across the financial services sector and new requirements for automation at scale. He noted the recent launch of the NewgenONE platform, which incorporates AI and generative AI capabilities, as a commitment towards this direction.
CEO Virender Jeet also underscored the strong bookings witnessed during the quarter from both existing and new customers. He noted the company’s ongoing focus on building a sustainable organization through robust partner ecosystems, long-term customer relationships, reliable supply chains, and a diverse employee base.