One of the small-cap AI stocks engaged in providing an AI-enabled unified digital transformation platform that includes process automation, content services, and communication management solutions for enterprises. The stock has jumped 7.03 percent after reporting a 30% YOY increase in net profit.
Stock Price Movemen
In Monday’s trading session, Newgen Software Technologies Limited’s share jumped to an intraday high of 7.03 percent from the previous close of Rs. 1585.40. The stock opened at Rs. 1590.90 and is currently trading at Rs. 1574.45, with a high of Rs. 1696.80 and a low of Rs. 1569.05. The market capitalization now stands at approximately Rs. 22,088.24 crore.
Q3 FY25 Result Walkthrough
Coming into the quarterly results of Newgen Software Technologies Limited, the company’s consolidated revenue from operations increased by 17.75 percent YOY, from Rs. 323.65 crore in Q3 FY24 to Rs. 381.11 crore in Q3 FY25, and grew by 5.52 percent QoQ from Rs. 361.16 crore in Q2 FY25.
The company has earned revenue from India by 32.01 percent, EMEA by 31.21 percent, APAC by 15.95 percent, and USA by 20.82 percent in Q3 FY25.
Further, the company’s EBITDA margin has increased by 460 bps, from 23.8 percent in Q3 FY24 to 28.4 percent in Q3 FY25. The PAT margin has reached 23.4 percent, which is increased by 230 bps YOY in Q2 FY25.
In Q3 FY25, Newgen Software Technologies Limited’s consolidated net profit slightly increased by 30.21 percent YOY, reaching Rs. 89 crore compared to Rs. 68.35 crore during the same period last year. As compared to Q2 FY25, the net profit has increased by 26.55 percent, from Rs. 70.33 crore.
The basic earnings per share increased by 29.8 percent and stood at Rs 6.36 as against Rs 4.90 recorded in the previous quarter FY25.
Secures Major Global Deals
Newgen Software achieved significant deal closures across regions, including contracts with RBI (Rs. 32 crore) and Aye Finance (Rs. 24 crore) in India. Notable global deals include USD 2.3mn in Saudi Arabia, SGD 1.7mn in Singapore, USD 1.8mn in the US, and USD 2mn in EMEA for digital solutions.
Additionally, Newgen Software secured Rs. 20.8 crores for its remittance system in India and USD 1.6mn for credit automation in Africa.
Business Operation
Newgen Software Technologies Limited has 32 years of experience and operates in 76 countries, serving 17 sectors like banking, insurance, and government. The company has added 51 new clients and holds 45 patents.
Written By – Nikhil Naik
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