The management of Newgen Software Technologies Ltd. announced results for the Quarter and Financial period ended 30 September 2019 at its Board Meeting held on 22 October 2019.
Speaking about the results, Mr. Diwakar Nigam, Chairman & Managing Director, Newgen Software Technologies Ltd. said – “During H1 FY’20, we witnessed growth across geographies with APAC and Americas region remaining strong. Our efforts on new logos have resulted in us adding 38 new logos including 6 cloud deals in Banking & Healthcare segments in Americas region.
Q2 FY’20 was particularly slow for us given the market headwinds in India and EMEA region. However, we continue to remain focused on our operations and in investing in building capabilities for the future.”
Highlights – Q2 FY’20
- Revenues at Rs 154.0 crore
- 26 new logo wins
- 26 new logo wins
- SaaS revenues up 43%
Key Financial Highlights (Q2 FY’20) – [Y-o-Y Comparison]
- Revenue from operations (Consolidated) up 3% YoY at Rs 154.0 crores as compared to Rs 149.7 crores in Q2 FY’19.
- Revenue from Sale of Products/ License were at Rs 29.1 crores
- Annuity Revenue streams (ATS/AMC, Support and Cloud/SaaS) were at Rs 90.4 crores. Cloud/SaaS continues to be our fastest growing revenue component.
- Implementation & Digitization revenues were at Rs 34.5 crores
- EBITDA* was at Rs 9.1 crores as the Company continued to make investments in talent acquisition and employee retention.
- Profit after tax is Rs 4.2 crores.
Key Financial Highlights (H1 FY’20) – [Y-o-Y Comparison]
- Revenue from operations (Consolidated) up by 11% at Rs 285.0 crores as compared to Rs 256.1 crores in H1 FY’19.
- EBITDA* was at Rs 16.9 crores.
- Profit after tax is Rs 7.3 crores.
Key Business Highlights (Q2 FY’20)
- Prestigious customer wins: 26 new customer additions in Q2 FY’20 including:
- License Agreement with a commercial bank based in Kenya
- License Agreement with a 25 year old financial institution in the Americas Region
- License Agreement with a leading Indian micro-finance institution headquartered in Bangalore, focused on providing micro-loans to women customers predominantly in Rural Areas in India.
- 5 Cloud deals across Banking & Financial Services and Healthcare segments in the Americas Region
- APAC region witnessed strong growth of 25%, EMEA region witnessed growth of 4%
- Focus on innovation: Received a total of 13 patents till date across India and US; including the patent granted in July 2019 by US Patent Office for the Company’s Intelligent Check Deposit Machine which helps in optimizing the check clearing cycle while ensuring security and compliance
- Analyst Recognitions: Positioned as a Strong Performer” in the Forrester Wave™: ECM Content Platforms, Q3 2019*. Newgen has achieved the highest score of 4.08 among all vendors in the “Current Offering” category. The report recognized Newgen as “a good fit for enterprises looking to modernize their critical content and process applications and seeking a fresh, cost-effective alternative to older apps”.
- Key Awards: Recognized as the “Enterprise Content Management Vendor of the Year” at Frost & Sullivan’s 2019 India ICT Awards
* authored by Cheryl McKinnon et al.
Connecting Enterprises. Transforming Experiences.
Newgen Software Technologies Limited (listed In India on National Stock Exchange [Script code: NEWGEN] and BSE Ltd. [Script code: 540900]), is a provider of Intelligent Digital Automation (BPM), Contextual Content Services (ECM) and Omnichannel Customer Engagement (CCM) platforms with large, mission-critical solutions deployed at world’s leading banks, Governments, BPO’s & IT Companies, Insurance firms and Healthcare Organizations.
This press release may contain certain forward looking statements concerning Newgen Software Technologies’ future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth and new business opportunities, competition (both domestic and international), economic growth in India and the target countries for business, ability to attract and retain highly skilled professionals, time and cost over runs on projects, our ability to manage our international operations, government policies, interest and other fiscal costs generally prevailing in the economy. Past performance may not be indicative of future performance. The company does not undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the company.
Deepti Mehra Chugh