Newgen Software Technologies Ltd. reported a 47% year-on-year increase in consolidated net profit in the second quarter of the current financial year, beating analyst estimates.
The software firm posted a profit of Rs 70.3 crore for the quarter ended September, compared to Rs 47.8 crore in the same quarter last year, according to an exchange filing. This exceeded the Rs 58-crore estimate by analysts tracked by Bloomberg.
Revenue grew 23% year-on-year for the three months ended September, reaching Rs 361.2 crore. Analysts had projected revenue of Rs 358 crore. Licence revenues grew 52%, according to Diwakar Nigam, chairperson and managing director of Newgen.
Operating income, or earnings before interest, taxes, depreciation, and amortisation (Ebitda), rose 45% to Rs 83 crore. The Ebitda margin increased to 23% from 19.5% in the same period last year.
"All our key markets performed well during the quarter, with APAC growth strong for two consecutive quarters," Chief Executive Officer Virender Jeet said. "Banking and financial services remain our core verticals, and we saw increasing traction in the insurance and government sectors."
Newgen won a project worth Rs 25 crore from an insurance company and an order from an infrastructure financing services company. It also secured an order worth $1.5 million from a financial leasing company in Saudi Arabia.
Newgen Software Technologies Bags Order Worth Rs 25 Crore
Newgen Software Shares Fall Over 7%
Shares of Newgen fell as much as 7.98% during the day to Rs 1,243 apiece on the NSE. The stock was trading 4.49% lower at Rs 1,290.15 per share, compared to a 0.28% decline in the benchmark Nifty 50 as of 3:18 p.m. It has risen 175.95% in the last 12 months and 62.02% on a year-to-date basis.
Of the seven analysts tracking the company, four have a 'buy' rating on the stock, and three recommend 'hold', according to Bloomberg. The average 12-month consensus price target implies a potential downside of 11.9%.
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