Newgen Software closes at an all-time high after stellar Q2 FY24 results announcement

Shares of Newgen Software Technologies ended the day in the blue-sky zone today following the company’s Q2 FY24 results announcement.

Despite the stock’s flat opening, with only a 1% increase from its previous day’s closing price on the BSE, it reached its 52-week high price of Rs 1,060 per share during the intraday session. This remarkable surge was driven by the company’s strong performance in the second quarter. In the end, the stock concluded the day near an all-time high at Rs 1045 per share, showcasing an impressive rally of 12%.

The company currently holds a market capitalisation of Rs 7,310 crore, and its stock has achieved an impressive multibagger return of 188% in the past year. Let’s quickly analyse the results reported by the company.

Quarterly Result: 

In Q2 FY24, the company experienced a significant increase in its revenue from operations, rising from Rs 226 crore to Rs 293 crore, marking a 29.7% YoY increase. The total income grew by 30% YoY to Rs 302 crore this quarter.

The company reported an operating profit of Rs 57.2 crore, compared to Rs 37.6 crore in the corresponding quarter of the previous year. The operating profit margin stood at 19.5% during the September quarter, compared to 16.6% in the corresponding quarter last year.

Meanwhile, the company’s net profit for the quarter grew by 59% YoY, amounting to Rs 47.8 crore, showing a significant increase compared to the profit of Rs 30 crore in the corresponding quarter of the previous year.

During the quarter, 74% of the company’s revenue came from the Banking vertical, while the PSUs vertical contributed 8%, and the Healthcare vertical contributed 6%. In terms of revenue split by geography, EMEA contributed 34%, India contributed 32%, and the USA contributed 23%.

Furthermore, the company has established new offices in New York, United States of America, and Riyadh, Kingdom of Saudi Arabia, as part of its expansion strategy to increase its presence in the US and Middle East markets.

Business Overview: 

Newgen Software Technologies is a global software Company and is engaged in the business of software product development including designing and delivering end-to-end software solutions covering the entire spectrum of software services from workflow automation to Document management to imaging.

It provides a unified digital transformation platform known as NewgenONE. This platform is designed to automate end-to-end processes and effectively manage content and communications. It leverages AI capabilities, governance, and a robust integration ecosystem.

The company offers low-code application platforms that enable various enterprises to develop and deploy business applications in the cloud. NewgenONE is versatile and can be applied to a wide range of use cases across different industries, from onboarding and service requests to lending and underwriting, among others.

Stock Chart (Daily Time Frame): 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.