Newgen Q3 results: Net profit up 48% to Rs 35 cr

Newgen Q3 results: Net profit up 48% to Rs 35 cr

Newgen Software Technologies on Wednesday said it has clocked 47.8 per cent rise in consolidated net profit at Rs 35.4 crore for the December 2020 quarter, driven by cost rationalisations.

The company had registered a net profit of Rs 24 crore in the year-ago period, Newgen said in a regulatory filing.

Its revenue grew marginally to Rs 185.5 crore in the quarter under review from Rs 185 crore in the year-ago period, it added.

The company said it has witnessed robust performance with balanced growth across key geographies as it continues to get large and additional business from existing customers and undertakes new logo acquisitions.

The company has also seen a substantial uptick in subscription revenues, it added. Subscription revenues were at Rs 51.2 crore, while that from sale of products/license were at Rs 36.4 crore. Implementation and digitisation revenues were at Rs 48.6 crore.

“Q3 has always been an important quarter for us, and we are extremely happy to deliver another robust quarter, maintaining the business momentum,” Newgen Software Technologies Chairman and Managing Director Diwakar Nigam said.

He added that post-COVID, the company has witnessed a balanced growth across most of its key geographies, including India, the US and the APAC region.

“We are happy with our customers’ expanded use of our platform as we continue to get significant incremental business from existing customers. Our subscription-based revenues, especially SaaS/Cloud are growing at a healthy rate,” he said.

The company added 11 logos during the quarter.

“Combating the uncertain environment, we have maintained strong operating margins as well as cash generation from operations,” Nigam said. Newgen sees a good demand environment across all key industry segments in the new normal, he added.

Newgen, in 2021, is now ready to make deep investments on various fronts across technology and sales and marketing for long-term growth, he said.

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