Synopsis: Newgen Software Ltd, has bagged a turnkey order for scanning and digitization of judicial and administrative records.
A technology services stock saw positive investor traction after it secured a significant government-linked order in the digital solutions space. The contract adds to its execution pipeline and strengthens its position in records management and digitization.
Newgen Software Ltd, with a market capitalization of Rs. 12,697.96 crore, opened at Rs. 910.05 after a previous close of Rs. 895.80. The stock hit an intraday high of Rs. 922.90, marking a 3.02 percent rise from the prior close.
What’s the News?
The company announced that it has received and accepted a Purchase Order valued at Rs. 73.12 crore for the scanning and digitization project. The mandate involves scanning and digitization of pending and disposed judicial and administrative records/files of an Hon’ble Court of a State on a turnkey basis.
The execution timeline for the project is two years, and the order has been classified as domestic. The development is expected to contribute meaningfully to the company’s digital transformation offerings.
Also read: 4 Stocks in which promoter sold up to 5% stake in the company
Financial Snapshot
On a quarter-on-quarter basis, revenue fell from Rs. 430 crore to Rs. 321 crore, a decline of 25.3 percent. Operating profit dropped from Rs. 137 crore to Rs. 45 crore, down 67.2 percent. Profit before tax slipped from Rs. 141 crore to Rs. 64 crore, lower by 54.6 percent, while net profit declined from Rs. 108 crore to Rs. 50 crore, a fall of 53.7 percent.
On a year-on-year basis, revenue rose slightly from Rs. 315 crore to Rs. 321 crore, up 1.9 percent. Operating profit decreased from Rs. 48 crore to Rs. 45 crore, down 6.2 percent. Profit before tax increased from Rs. 61 crore to Rs. 64 crore, a growth of 4.9 percent, while net profit improved from Rs. 48 crore to Rs. 50 crore, up 4.2 percent.
About the Company
Newgen Software Technologies is a global software company engaged in the development and delivery of software products and solutions. Its offerings span workflow automation, document management, and imaging. Its customers are organisations belonging to the banking, telecommunications and insurance sectors.
Written by – Manan Gangwar
