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Revenue for the quarter also saw a solid growth of 17.7%, reaching ₹381 crore, compared to ₹323.7 crore in the year-ago period. The growth was supported by increased demand for the company’s digital transformation solutions across various sectors.
In operational performance, the IT firm’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw an impressive surge of 40.2%, rising to ₹107.8 crore from ₹77 crore in the third quarter of fiscal 2024.
The company also reported an improvement in its EBITDA margin, which expanded to 28.3% from 23.8% year-on-year.
Commenting on the company’s performance, Diwakar Nigam, Chairman &
Managing Director of Newgen, said, “We continue to solidify our business and cultivate our customer relationships during the quarter. License revenues have grown by 70% YoY during Q3 with good deal velocity and several significant deal closures. We witnessed strong growth in Banking & Financial Services and Government verticals during the quarter. We are also entrenching deeper in the Insurance & Healthcare verticals across markets.”
Newgen’s annuity revenue streams, including ATS/AMC, support services, cloud/SaaS, and subscription licenses, reached ₹208 crore, reflecting continued demand for its recurring revenue model.
Revenue from the sale of products and licenses amounted to ₹94 crore, while revenue from implementation services and other activities stood at ₹79 crore.
The company’s performance was bolstered by strong growth across its key markets. In the Asia-Pacific (APAC) region, revenue surged by 44% year-on-year, while the European, Middle Eastern, and African (EMEA) markets saw a 19% increase. In India, revenue grew by 10%, and the United States delivered a solid 13% growth year-on-year.
Newgen Software’s shares pared gains despite the strong quarterly performance reported on Monday. As at 14:15 IST, the company’s stock price shed 0.6% to reach ₹1,576.10 on the BSE.
During the trading session, Newgen Software also reached an intraday high of ₹1674.55, reflecting a 5.62% increase.
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