Newgen Software Technologies (NEWGEN) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 revenue reached INR 3,811 million, up 17.8% year-over-year, with strong deal velocity and major wins across India, EMEA, US, and APAC.

• Profit after tax for Q3 FY25 was INR 890 million, a 30.2% YoY increase, with 9M FY25 PAT at INR 2,069 million, up 41.4%.

• License sales surged 70% YoY in Q3 FY25, with broad-based contributions from all regions.

• 15 new logos added in Q3; 36 new logos over nine months.

• Recognized as a Niche Player in Gartner's Magic Quadrant for enterprise low-code platforms for the fifth consecutive year.

Financial highlights

• Q3 FY25 EBITDA (adjusted) was INR 1,083 million, up 40.6% YoY, with a margin of 28.4%.

• Nine-month revenue was INR 10,570 million, up 21.7% YoY; profit after tax was INR 2,069 million, up 41.4%.

• R&D expenses were 9% of revenues; sales and marketing at 22%.

• Net trade receivables stood at INR 463 crores, with net DSO of 118 days.

• Basic EPS for Q3 FY25 was INR 6.36, up 29.9% YoY.

Outlook and guidance

• Management expects continued healthy growth, targeting above 20% annual growth over the long term.

• 90% of current year bookings expected to convert to revenue in FY26.

• Margins are expected to remain strong, with a target of 20-23% net margin.

• Focus remains on mature markets for long-term $500 million revenue vision in 3-4 years.

• CRISIL reaffirmed the short-term rating of CRISIL A1 for the company's debt instruments/facilities.