Newgen Software Tech Q1 results: Net profit more than doubles to Rs 22 cr

NEW DELHI: Newgen Software Technologies on Tuesday said its consolidated net profit more than doubled to Rs 21.6 crore for the June 2021 quarter.

The company had registered a net profit of Rs 9.1 crore in the year-ago period, Newgen said in a regulatory filing.

Its revenue grew 20.8 per cent to Rs 159.5 crore in the quarter under review from Rs 132.1 crore in the year-ago period, it added.

However, on a sequential basis, net profit was lower by 59 per cent from Rs 52.7 crore in the fourth quarter of the financial year 2020-21, while revenue was lower by 20.2 per cent from Rs 200 crore in the March quarter. The company won 11 new logos during the reported quarter.

"We witnessed accelerated and broad-based growth in revenues and profits. Revenues were up by 21 per cent and profit after tax was up by 137 per cent in Q1 compared to the same period last year. As the markets are opening up, we hope to maintain the growth momentum," Newgen Software Technologies Chairman and Managing Director Diwakar Nigam said.

The company continues to put efforts in growing its annuity-based revenues which witnessed a growth of 20 per cent in the first quarter year-on-year, he added.

Annuity revenues were at Rs 104.8 crore, while subscription revenues were at Rs 53.7 crore (up 14 per cent y-o-y).

The US market accounted for 35 per cent of the quarter's revenue, followed by Europe, Middle East, and Africa (EMEA) at 31 per cent, India (23 per cent), and Asia Pacific (excluding India) at 11 per cent.

The company said revenues across all geographies witnessed growth with EMEA and APAC witnessing the highest growth.

Also, banking and financial services, government/ PSUs, and healthcare were the fastest growing segments during the quarter.