Newgen Software Technologies Q1 net profit declines 55% QoQ, shares plunge 7%

In its quarterly results filed with the stock exchanges on July 18, Newgen Software said that its net profit for Q1FY25 grew over 57% year-on-year to ₹47.57 crore compared to ₹30.2 crore in Q1FY24. However, the computer software and consulting company’s net profit for Q1FY25 declined 55% on a quarter-on-quarter basis from ₹105.27 crore in Q4FY24.

In Q1FY25, Newgen Software’s revenue from operations grew 25% to ₹314.72 crore compared to ₹251.67 crore in the same quarter of the preceding fiscal. The company’s revenue from operations for the June quarter of FY25 fell 16% sequentially compared to ₹375.27 crore in the March quarter of FY24.

In Q1FY25, the company’s annuity revenue streams (ATS/AMC, support, and cloud/SaaS and Subscription license) contributed ₹201 crore. The company’s revenue from sale of products and licence stood at ₹45 crore and its revenue from implementation was ₹68 crore in Q1FY25.

The software company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) grew over 48% to ₹47.7 crore in Q1FY25 compared to ₹32.1 crore in the same quarter of the preceding fiscal. The company’s EBITDA margin in the June quarter improved by 230 basis points to 15.1% from 12.8% in Q1 FY24.

In Q1FY25, Newgen also launched a new product named Newgen LumYn for the banking sector. The new product is a generative AI-powered hyper personalisation platform.

Newgen is a provider of AI enabled unified digital transformation platform with native process automation, content services, and communication management capabilities.

Newgen Software Technologies Ltd shares closed at ₹1,032 apiece, down 1.63%, on the NSE.