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Newgen Software Tech Q3 profit increases 35% yoy to Rs48cr; Stock sheds over 1%

19 Jan 2022 , 09:16 AM

The management of Newgen Software Technologies Ltd has announced results for the quarter ended December 31, 2021 at its Board Meeting held on January 18, 2022.

Key Consolidated Financial Highlights (Q3 FY’22 v/s Q3 FY’21)

Revenue from operations (consolidated) at Rs202.5cr as compared to Rs185.5cr in Q3 FY’21, up 9% yoy
Subscription revenues (ATS/AMC and SaaS) stood at Rs61.7cr, up 20% yoy, Annuity revenues (ATS/AMC, Support, and SaaS) were at Rs111.6cr, witnessing a growth of 11% yoy
Revenue from the sale of products/license was reported at Rs49.8cr, up 37% yoy
Implementation and digitization revenues were at Rs41.2cr
EBIDTA stood at Rs57.9cr compared to Rs68.8cr in Q3 FY’21. EBIDTA decreased on account of normalization of cost base compared to last year as well as increased remuneration to manage attrition
Profit after tax went up by 35% yoy at Rs47.8cr from Rs35.4cr in Q3 FY’21

Key Consolidated Financial Highlights (9M FY’22 v/s 9M FY’21)

Revenue from operations (consolidated) at Rs547.5cr as compared to Rs472.6cr in 9M FY’21, up 16% yoy. Annuity revenues were at Rs330.9cr, witnessing a growth of 16% yoy.
EBIDTA stable at Rs127.2cr compared to Rs125.5cr in 9M FY’21.
Profit after tax up by 45% yoy at Rs106.8cr from Rs73.7cr in 9M FY’21.

Speaking about the results, Diwakar Nigam, Chairman & Managing Director, Newgen Software Technologies Ltd., said — “Q3 has been on the path of continuous progression amidst ongoing uncertain environment. The quarter witnessed 20% yoy growth in subscription revenues however, several of these ordeRshave long gestation leading to deferment of revenues. We continue to see major wins and expansion of business in our existing customeRsand added 17 new logos as well. Overall, in the first nine months of the year, we have clocked in revenues of Rs548cr and profit after tax of Rs107cr.”

“Newgen is pleased to announce that it is acquiring India-based Number Theory, an AI/ML (artificial intelligence and machine learning) data science platform company, subject to the completion of conditions as stated in the approved Share Purchase Agreement. Number Theory’s platform, AI Studio, brings intuitive AI/ML to every enterprise, while unifying the entire lifecycle of data engineering, from data preparation to model development and monitoring. This acquisition will further strengthen Newgen’s low code digital transformation platform, NewgenONE, with AI/ML modeling and data analytics capabilities” said Virender Jeet, CEO, Newgen Software.

On Wednesday early morning trade, Newgen Software Tech was trading at Rs615 per piece lower by 1.32% on the BSE.

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