Speaking about the results, Diwakar Nigam, Chairman & Managing Director, Newgen Software Technologies Ltd. said – “FY’23 has started on a strong note with revenue growth of 18% Q1 YoY with cloud and subscription revenues growing at 33% Q1 YoY. Given the seasonal nature of our business, Q1 is a lean quarter for us. On the cost front, there has been an impact of elevated employee costs and gradually normalizing travel expenses, however, Q1 margins are not a
reflection of the year margins. We strongly believe that we have a resilient business model in place, with our products having significant leverage across both sides of the market opportunity – revenue enhancement and cost optimization.”
“We continue to work on our long term cloud roadmap. We have enhanced
NewgenONE with a cloud-native, multi-persona artificial intelligence and data
science platform. Our platform is further enriched with intelligent document
classification and extraction, integrated process, robotic process automation and
easy application deployment capabilities,” said Virender Jeet, CEO, Newgen
|Key Business Highlights (Q1 FY’23)
· Newgen and Coforge formed a global strategic alliance to accelerate digital for organizations in the US, Europe, and the rest of the world
· Strategic partnership with Anabatic Digital, a leading IT solutions provider in Indonesia, for delivering high-value solutions to financial institutions across Indonesia and Asia-Pacific region
· CRISIL assigned a short-term rating of CRISIL A1 for debt instruments/facilities of the Company
· Incorporated a wholly-owned subsidiary in United Arab Emirates under the name – Newgen Software Technologies L.L.C.
· Entered into transformation projects with existing customers including a license agreement with an India based oil major and a key life Insurance player in India
· Six new logo wins in Q1 FY’23, with two logos in the Americas region
· Newgen CSR won Best CSR Practices-Digital Education in Responsible Business Awards organized by Dr. R L Bhatia, Founder of World CSR Day and World Sustainability
|Key Consolidated Financial Highlights (Q1 FY’23)
Revenue from operations (consolidated) witnessed strong growth reaching Rs 188 crores as compared to Rs 160 crores in Q1 FY’22 (up 18% YoY).
· Subscription revenues (ATS/AMC and cloud) were at Rs 71 crores, up 33% YoY. Annuity revenue streams (ATS/AMC, support, and cloud/SaaS) were at Rs 131 crores
· Revenue from the sale of products/license was at Rs 14 crores
Profit after tax stood at Rs 19 crores as compared to Rs 22 crores in Q1 FY’22. This was impacted due to the normalization of cost base on account of increased employee and travel costs.