Newgen Software reports 23% YoY growth in Revenues in Q1 FY’20

0
525
Newgen Logo

New Delhi, India – 24 July 2019: The management of Newgen Software Technologies Ltd. announced results for the Quarter and Financial Year ended 30 June 2019 at its Board Meeting held on 24 July 2019.

Speaking about the results, Diwakar Nigam, Chairman & Managing Director, Newgen Software Technologies Ltd. said – “The fiscal year began on a positive note with revenue growth of 23% YoY and improvement in our operating profits. We continue to invest in deepening our product capabilities, talent development and new market expansion. We opened up our Australian subsidiary during the quarter and are pursuing opportunities in that market.

License revenues witnessed a growth of 90% YoY as we closed a few interesting new logos in the enterprise, banking and financial services and insurance space. ”

Revenues up 23% YoY | EBIDTA*up to Rs 7.7 crores compared to Rs 0.6 cr in Q1 FY’19|12 new logo wins|Strong APAC & USA market growth; SaaS revenues up 73%

Key Financial Highlights (Q1 FY’20)

  • Revenuefrom operations (Consolidated) was up by 23% YoY to reach Rs 131.0 crores as compared to Rs 106.5 crores in Q1 FY’19.

o   Revenue from Sale of Products/ License were at Rs 24.2 crores

o   Annuity Revenue streams (ATS/AMC, Support and Cloud/SaaS) were at Rs 78.4 crores. Cloud/SaaS continues to be our fastest growing revenue component.

o   Implementation & Digitization revenues were at Rs 28.3 crores

  • EBITDA* was at Rs 7.7 crorescompared to Rs 0.6 crores in Q1 FY’19 partly due to implementation of Lease Accounting Standard – Ind AS 116 (Rs 3.9crores).
  • Profit after tax is Rs .1 crores compared to Rs 3.9 crores in Q1 FY’19 due to significant decrease in foreign exchange gains, included in Other Income which changed to Rs 3.0 crores in Q1 FY’20 from Rs 7.8 crores in Q1FY’19.

Key Business Highlights (Q1 FY’20)

  • Business growth across key markets especially APAC and USA regions which witnessed a YoY growth of 65% and 24%respectively.
  • Prestigious customer wins: 12 new customer additions in Q1 FY’20 including:

o   License Agreement with a global leader in beverage alcohol

o   Cloud deal with a US Company in legacy annuity business

o   License Agreement with a Filipino based stock life insurance company

o   Saudi Arabia conglomerate with interests in petrochemicals, chemicals, plastics, and metals manufacturing, industrial services and environmental technologies

o   Union Bank and Trust (UBT) based in USA is implementing Newgen BPM platform for enterprise-wide automation of its banking processes. UBT is replacing its numerous disparate systems and automating manual processes in favor of a single platform that can be utilized across all areas resulting in enhanced operational efficiencies and improved customer interactions.

Focus on innovation: Granted a patent in July 2019 entitled “Automated Quality and Usability Assessment of Scanned Documents”. The invention enables organizations to automatically assess the quality of scanned images and make necessary corrections.

  • Cloud/ Saas business model strengthening annuity revenues: In Q1 FY’20, SaaS revenues were at Rs 8.4 crores, up by 73%YoY.

Improved positioning through global alliance: Compliance Systems based in Michigan and Newgen entered into a strategic alliance that will provide their joint customers with best-in-class solutions to help them drive digital transformation while remaining fully compliant. Under the agreement, Newgen and Compliance Systems will work together to develop an integrated solution that enables compliance in the lending space.