Newgen Software Technologies has announced strong growth for its full fiscal 2024. After a positive fourth quarter, ending March 31st 2024. The firm achieved 28% year over year growth in total revenue, reaching RS 1,292 CR (about US$155 Million). Profit after tax grew 42% to Rs 252Cr (about US$301 Million). The market responded well, with shares on NSE: NEWGEN rising 23.01% over the last five days to close at 931 INR. They rose sharply after the results were announced yesterday, closing the day 7.45% up.
Mr Diwakar Nigam, Chairman & Managing Director of Newgen Software Technologies Ltd. said – “We are delighted to close another good growth year in terms of revenues and profits with strong growth in India and EMEA markets. Our large customer base has been increasing, leading to strong growth in revenue per customer. For the quarter, we have registered our highest ever quarterly revenue at Rs 375 crores in Q4. Profit after tax crossed Rs 100 crores for the first time in a quarter.”
Growth continues
At its presentation, Newgen revealed that the full year saw 51 new customer logos. 11 of which were gained in the last quarter of the year. There was also a 29% increase in revenue from existing customers, with 65 of them spending over Rs50 million with Newgen.
Key figures from the full year included:
- Total revenue Rs 12,438 Million (28% YoY Growth)
- Recurring Revenues of Rs 7,498 Million (26% YoY Growth)
- Cash flow Rs 2,814 Million
- EBITDA: Rs 2,883 Million ( a margin of 23%)
- Profit after tax, Rs 2,516 Million (42% YoY Growth)
Newgen also gave a breakdown by industry of where revenues come from. With Banking and Financial Services the biggest segment (70%) followed by Government (8%), Insurance (7%) and Health (7%).
It is also balanced across different regions with a balance between EMEA, Asia and the USA. Its most successful region is EMEA (35%); its home nation, India reached (32%), the US has (21%) and APAC (12%). The biggest increase in terms of geography was seen in EMEA, which grew by 3% from the previous year. The firm opened new offices in New York and Saudi Arabia during the last financial year and has expanded its sales and marketing efforts.
Mr. Virender Jeet, CEO Newgen Software, commented, “Our commitment to innovation and delivering value to our customers remains steadfast. During the year, we worked constantly on refining and expanding the capabilities of our platforms and solutions. We have successfully rolled out several new versions, with enhanced features, improved design and deployment journeys, enhanced AI/ML capabilities, improved security, and user-centric upgrades. We have increased revenues from existing customers as well as added 51 new logos in FY’24.”
Enterprise Times: What does this mean
Newgen Software is seeing good traction for its low-code platform. It was boosted by the launch of NewgenONE Marvin, its new generative AI product. Which Varun Goswami, Vice President of Product Management at Newgen Software, spoke about in a recent interview with Enterprise Times.
The firm continues to invest in products with a notable 45 field patents and 24 granted already. It has over 600 employees (from 4,400) working in R&D as it looks to develop its platform further. It will be interesting to see what fiscal 2025 holds for the company that is offering its low code platform at a time when organisations are seeking solutions that will deliver agility.
