Multibagger Stock: Secures USD 2 Million Order from Dubai!
Order to Drive Expansion in Digital Lending Solutions with Strong Financial and Stock Performance
Newgen Software Technologies LLC, a subsidiary of Newgen Software Technologies, secured a USD 2 million contract in Dubai. The deal involves implementing a Digital Lending and Onboarding Platform for a retail customer. The project is expected to be executed within one year, with no promoter or group company involvement. This transaction is confirmed as non-related-party.
Strong Q2 FY’25 Financial Performance
Newgen reported revenue of Rs 361 crores for Q2 FY’25, marking a 23 per cent Y-o-Y growth. Region-wise, APAC led with a 53 per cent rise, followed by EMEA at 21 per cent, and India at 19 per cent. Revenue from the US saw a steady 17 per cent growth, driven by a strategic focus on larger accounts.
Profit and Revenue Highlights
The company achieved a profit after tax of Rs 70 crores, reflecting a 47 per cent Y-o-Y growth. License sales rose sharply by 52 per cent Y-o-Y, while annuity revenues contributed Rs 205 crores. R&D expenses were 9 per cent of revenues, and sales and marketing accounted for 22 per cent.
Operational Efficiency
Net trade receivables stood at Rs 442 crores, with a Days Sales Outstanding (DSO) of 117 days. The order book for H1 FY’25 grew by 20 per cent-22 per cent, showcasing robust customer acquisition and retention efforts.
Expanding Customer Base
Newgen is focused on acquiring new customers and upselling to existing ones. The company aims to derive 50 per cent of its growth from upsells. Average deal sizes range from $700,000 to $2 million, with a 20 per cent recurring annuity for support and maintenance.
Targeted Growth Areas
The company plans to invest further in sales and marketing to penetrate markets and increase deal sizes. Key growth sectors include insurance and government, which are expected to contribute significantly in the future.
Product Innovations
Newgen continues to enhance its product lineup with tools like Islamic retail financing and SME lending solutions. It has launched new versions of OmniDocs and OmniXtract while adding advanced features to its NewgenONE Marvin platform.
Stock Performance
Newgen Software has delivered impressive returns, gaining 102 per cent on a YTD basis and 112 per cent over the last year. This reflects strong investor confidence driven by its robust growth and business strategies.
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About Newgen Software
Newgen Software Technologies develops software products, offering solutions like workflow automation, document management, and imaging services to global customers