Chennai, India – 22 July 2020: The management of Newgen Software Technologies Ltd.
announced results for the Quarter ended 30 June 2020 at its Board Meeting held on 22 July
2020.
Speaking about the results, Mr. Diwakar Nigam, Chairman & Managing Director, Newgen
Software Technologies Ltd. said – “During the quarter, we achieved revenues of Rs 132
crores. We continued to get business from our existing long-term customers ensuring full
support to their mission-critical operations. We have also commissioned new solutions for
them to fully managed remotely. We made 22 new customer additions during the quarter.
Newgen has received a tremendous response, especially in the US region for our new
Paycheck Protection Program (PPP) and Forgiveness solutions.
With our continued focus on profitable growth, we have undertaken substantial efforts
towards optimisation of costs across all spheres of the organisation leading to a significant
expansion of our margins on a YoY basis even amidst this challenging market. We also
continue to strengthen our liquidity position.
Employee safety and customer service continue to be at the forefront of our post-COVID
strategy and we have adopted effective practices and solutions to ensure a safe and
efficient remote working environment. We are successfully fulfilling our commitments
through these measures and practices while ensuring data security.
We will continue our focus on taking measures for building resilience within the
organization, investing for long-term goals, and growing our recurring revenues, profits, and
cash flows as the demand and adoption for digital solutions accelerates.”
Key Consolidated Financial Highlights (Q1 FY’21) – [Y-o-Y Comparison]
Revenue from operations (Consolidated) at Rs 132.1 crores as compared to Rs 131.0
crores in Q1 FY’20.
o Annuity Revenue streams (ATS/AMC, Support, and Cloud/SaaS) witnessed a
growth of 11% YoY and reached Rs 87.1 crores providing improved visibility of
the business.
o Revenue from Sale of Products/ License were at Rs 20.8 crores
o Implementation & Digitization revenues were at Rs 24.3 crores
EBIDTA up by 101% at Rs 15.6 crores compared to Rs 7.7 crores in Q1 FY’20
Profit after tax up by 196% at Rs 9.1 crores from Rs 3.1 crores in Q1 FY’20 based on
strong cost rationalization initiatives undertaken by the Company.
Prestigious and large customer wins: 22 credible new customer additions including:
o 15 new logo wins in the Americas region in Banking and Credit Union space
o Mid-sized project for a global leader in energy transportation based in Qatar,
(EMEA region)
o Project for one of the largest and fastest growing insurance companies in the
Philippines, offering financial security to 1.3 million individuals through group
and individual life insurance products (APAC region)
Making strong in-roads in the US market with new offerings: Newgen’s revenues from
the US region witnessed a growth of 36% YoY during the quarter, largely on the back of
solution deployments under the Paycheck Protection Program. Leading banks and credit
unions are now using Newgen for processing loan requests for PPP. Given Newgen’s
unique positioning, these opportunities are expected to help in deeper penetration in
the region thus supporting long term SaaS growth for the Company.
Banking & Financial Services and Insurance verticals continue to be the growth drivers
during the quarter with growth of 12% and 29% respectively.
Effective remote enablement measures: The Company continues to fulfill all customer
commitments through effective remote enablement measures including
institutionalizing new business processes and ways of working and thus leading to
better collaboration, efficient delivery, and enhanced productivity despite lack of in-
person interactions.
