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The management of Newgen Software Technologies Ltd. announced results for the quarter ended 30 June 2021 at its Board Meeting held on 20 July 2021.
Speaking about the results, Mr. Diwakar Nigam, Chairman & Managing Director, Newgen Software Technologies Ltd. said – “We are pleased to announce a robust growth quarter. We witnessed accelerated and broad-based growth in revenues and profits. Revenues were up by 21% and Profit after tax was up by 137% in Q1 compared to the same period last year. As the markets are opening up, we hope to maintain the growth momentum. We continue to put efforts into growing our annuity-based revenues which witnessed a growth of 20% Q1 YoY.
Most of the employees continue to work remotely, as we prepare for the post- COVID hybrid working environment moving forward. We have also been organizing vaccination drives across locations for our employees and their families.
We are excited to unveil our digital transformation platform—NewgenONE. NewgenONE is a comprehensive low-code platform for process automation with integrated content services and communication management. NewgenONE simplifies complex enterprises wide business processes and information for superior employee and customer experiences.
We have enhanced our relationships with System Integrators through exemplary customer cases and success stories in our joint target markets. This segment is expected to be a key growth engine of our revenues in the medium term.”
Key Consolidated Financial Highlights (Q1 FY’22 v/s Q1 FY’21)
Revenue from operations (consolidated) at Rs 159.5 crores as compared to Rs 132.1 crores in Q1 FY’21, up 21% YoY
- Annuity Revenues (ATS/AMC, Support, and SaaS) were at Rs 104.8 crores, witnessing the growth of 20% YoY. Subscription revenues (ATS/AMC and SaaS) were at Rs 53.7 crores, up 14% YoY; increasing share of cloud business.
- Revenue from the sale of products/licenses was at Rs 27.9 crores, up 35% YoY
- Implementation & digitization revenues were at Rs 26.8 crores
EBIDTA up by 46% YoY at Rs 22.8 crores compared to Rs 15.6 crores in Q1 FY’21
Profit after tax up by 137% YoY at Rs 21.6 crores from Rs 9.1 crores in Q1 FY’21
Key Business Highlights (Q1 FY’22)
- Key Analyst Recognitions: Positioned as a “Strong Performer” in The Forrester Wave™: Content Platforms, Q2 2021, authored by Cheryl McKinnon et al.
- 11 new customer logos wins in the quarter, notably in the Middle East, APAC and UK regions.
Continous focus on R&D: Granted two additional patents in the areas of content management during the quarter taking the total patent grants to 20 in India and the US
- Granted a patent for an invention entitled “Online Collaborative Signing of Documents” for 20 years commencing from November 2010 by the Indian Patent Office. It aims at offering a solution for the collaborative signing of documents with automatic verification of user device, user identity, and user signatures
- Granted a patent for an invention entitled “Method and System for Managing and Archiving Electronic Messages” for 20 years commencing from May 2009 by the Indian Patent Office. It aims at offering a solution for automated and efficient email archival, management, and retrieval especially for business environments involving huge volumes of emails
Increasing cloud subscriptions: SaaS revenues witnessed a growth of 29% YoY contributing 9% to the revenues of the organization.
Accelerated performance in Banking & Financial Services, Government/PSU, and Healthcare verticals with increased demand for digital transformation initiatives.