Newgen Software Technologies (NEWGEN) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 revenue reached INR 315 crores, up 25% year-over-year, with strong growth across all regions and notable traction in trade, lending, and supply chain finance solutions.

• Added 13 new client logos in the quarter, with significant deals in Indonesia, Malaysia, Qatar, US, and India, mainly in banking and financial services.

• Launched LumYn, a GenAI-powered hyper-personalization platform for banking, and continued investment in insurance vertical and product innovation.

• Recognized in Gartner's Market Guide and reaffirmed CRISIL A1+ short-term rating.

• Unaudited standalone and consolidated financial results for the quarter ended 30 June 2024 were approved by the Board on 18 July 2024.

Financial highlights

• Profit after tax for Q1 was INR 48 crore, up 58% year-over-year.

• PAT margin for the quarter was around 15%.

• Annuity revenues for the quarter were INR 201 crores.

• Net trade receivables stood at INR 402 crore as of June 30, 2024, with net DSO of 112 days.

• Cash, bank, and investments totaled approximately INR 850 crore as of June 30, 2024.

Outlook and guidance

• Targeting continued product innovation, scaling operations, and expanding global reach, especially in mature markets.

• Expecting to maintain 20-25% top-line growth and aiming for PAT margin around 20% as business scales.

• Gradual shift towards more annuity-based revenue as mature market share increases.

• Management highlighted continued strong demand for digital transformation solutions, especially in banking and financial services.

• A dividend of ₹4.00 per equity share for FY24 was recommended, subject to shareholder approval.