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Newgen Software reports evenues of Rs 285 cr in H1 FY’20

THE ASIAN AGE
Published : Oct 23, 2019, 12:06 pm IST
Updated : Oct 23, 2019, 12:06 pm IST

Q2 FY’20 was particularly slow for us given the market headwinds in India and EMEA region.

Revenue from operations (Consolidated) up by 11% at Rs 285.0 crores as compared to Rs 256.1 crores in H1 FY’19.
 Revenue from operations (Consolidated) up by 11% at Rs 285.0 crores as compared to Rs 256.1 crores in H1 FY’19.

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

Strong APAC market growth

SaaS revenues up 43 per cent

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 Financial Highlights (Q2 FY’20) – [Y-o-Y Comparison]

Revenue from operations (Consolidated) up 3 per cent 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 Business Highlights (Q2 FY’20)

The 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

Tags: newgen software