Newgen Software Technologies soars over 9% after 42% growth in FY24 PAT, co declares ₹4 per share dividend

Shares of Newgen Software Technologies rose over 9% on Tuesday after the company reported a 31.7% year-on-year (YoY) rise in its fourth quarter net profit at ₹105.3 crore.

The company reported a 23% YoY rise in its operating revenue at ₹375.3 crore while total income rose 24.7% to ₹390.3 crore. Earnings before interest, tax, depreciation, and amortisation (EBITDA) adjusted for other income for the quarter rose 27.1% to ₹122.5 crore.

For the full year, the company reported a 42.1% YoY rise in its net profit at ₹251.6 crore. Revenue from operations increased 27.7% YoY to ₹1,243.8 crore while total income grew by 28.2% to ₹1,291.9 crore.

The board has approved a dividend of ₹4 per equity share, adjusted for a bonus issue of 1:1, the company stated.

Diwakar Nigam, Chairman and Managing Director at Newgen Software Technologies said the firm closed another good growth year in terms of revenues and profits with strong growth in India and Europe, the Middle East, and Africa (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 ₹375 crore in Q4. Profit after tax crossed ₹100 crore for the first time in a quarter,” he said.

Newgen Software Technologies said it had 65 customers with over ₹5 crore billing during the year compared to 51 in fiscal year 2023 (FY23). The firm saw 51 new customer logos addition during the year and 11 new customer logos addition in the quarter.

Newgen is a provider of a unified digital transformation platform with native process automation, content services, communication management, and artificial intelligence/machine learning (AI/ML) capabilities.

Shares of the company gained nearly 17% since the beginning of the year. The stock has risen over 229% in the last one year.