Cloud revenues continue to rise; poised for stronger growth with new leadership team

New Delhi: The management of Newgen Software Technologies Ltd. announced results for the quarter ended 30 September 2021 at its Board Meeting held on 25 October 2021.

Key Highlights‐ Q2 FY’22 v/s Q2 FY’21

Speaking about the results, Diwakar Nigam, Chairman & Managing Director, Newgen Software Technologies Ltd., said – “We are happy to announce another accelerated performance quarter. All our geographies witnessed growth with significant contribution from EMEA and India. Total income was up by 22% and profit after tax increased by 28% in Q2 compared to the same period last year. Enterprises are choosing Newgen as their digital transformation partner. With the recent organization‐wide management changes, we are getting future‐ready and strengthening our capabilities to capitalize on opportunities in the digital transformation space. We look forward to achieving newer heights with our able and experienced team.”

Virender Jeet, CEO, Newgen Software Technologies Ltd. said – “Through our innovative and comprehensive platforms, we are empowering businesses and creating long‐term value. We are pleased with the progress in our engagements with Global System Integrators for building a robust ecosystem in mature markets of US, Europe and Australia.”

Key Consolidated Financial Highlights (Q2 FY’22 v/s Q2 FY’21)

Revenue from operations (consolidated) at Rs 185.5 crores as compared to Rs 155.0 crores in Q2 FY’21, up 20% YoY

•             Annuity revenues (ATS/AMC, Support, and SaaS) were at Rs 114.6 crores, witnessing a growth of 17% YoY. Subscription revenues (ATS/AMC and SaaS) stood at Rs 60.9 crores, up 23% YoY, with the continued increase in the cloud business

•             Revenue from the sale of products/license was reported at Rs 40.9 crores, up 55% YoY

•             Implementation and digitization revenues were at Rs 30.0 crores

EBIDTA up by 13% YoY at Rs 46.6 crores compared to Rs 41.1 crores in Q2 FY’21.

Profit after tax up by 28% YoY at Rs 37.4 crores from Rs 29.2 crores in Q2 FY’21.

Key Consolidated Financial Highlights (H1 FY’22 v/s H1 FY’21)

Revenue from operations (consolidated) at Rs 345.0 crores as compared to Rs 287.1 crores in H1 FY’21, up 20% YoY. Annuity revenues were at Rs 219.4 crores, witnessing a growth of 19% YoY.

EBIDTA up by 22% YoY at Rs 69.4 crores compared to Rs 56.7 crores in H1 FY’21.

Profit after tax up by 54% YoY at Rs 59.0 crores from Rs 38.3 crores in H1 FY’21.

Key Operational/Business Highlights (Q2 FY’22)

•             Newgen announced key management changes to further strengthen its foothold in the digital transformation space. Virender Jeet has been named the chief executive officer and Tarun Nandwani the chief operating officer, with effect from September 1, 2021.

•             Key analyst recognitions: Positioned as a a Niche Player in the 2021 Gartner Magic QuadrantTM for Enterprise Low‐Code Application Platforms*

•             Increasing SaaS revenues: SaaS revenues witnessed a growth of 35% YoY, contributing 9% to the revenues of the organization

•             Accelerated performance in banking & financial services, and insurance verticals with increased demand for digital transformation initiatives