Newgen Shares Drop for 4th Consecutive Session Despite 18% YoY Revenue Growth in Q3FY25

On January 21, 2025, Newgen share price fell for the 4th straight trading session and witnessed a significant fall of over 10% and touched the day low of ₹1,395.00 at 10:05 AM after opening at ₹1,582.95. In the past 4 trading sessions, Newgen share price has slipped over 20%. The shares of Newgen Software Technologies are currently trading above the 52-week low-high average, where the 52-week stands at ₹1,795.50 while the 52-week low is at ₹626.05.

Newgen Software Q3FY25 Earnings

For Q3FY25, the company reported a revenue growth of 18% YoY, reaching ₹381 crore compared to ₹324 crore in Q3FY24. License sales saw a significant increase of 70% YoY, driven by strong deal velocity. Annuity revenue streams, which include ATS/AMC, support services, cloud/SaaS, and subscription licenses, accounted for ₹208 crore. Revenue from the sale of products/licenses stood at ₹94 crore, while revenue from implementation and other services was ₹79 crore. Profit after tax for the quarter was ₹89 crore, reflecting a 30% YoY increase compared to ₹68 crore in Q3FY24.

Newgen Software 9MFY25 Performance

For the nine-month period ending December 31, 2024, the company recorded a 22% YoY revenue growth, reaching ₹1,057 crore, up from ₹869 crore in 9MFY24. Annuity revenue streams amounted to ₹614 crore, while revenue from the sale of products/licenses reached ₹217 crore. Revenue from implementation and other services stood at ₹226 crore. Profit after tax for 9MFY25 was ₹207 crore, up 41% YoY compared to ₹146 crore in 9MFY24.

Key Business Highlights of Q3FY25

Notable deal closures during Q3 FY25 included several significant agreements. Newgen entered into a partnership with the Reserve Bank of India for the implementation and maintenance of the Regulatory Application Management System, with an aggregate contract value of ₹32 crore.

In India, the company signed an agreement with Aye Finance Ltd. for a Loan Origination Solution worth ₹24 crore. In Saudi Arabia, Newgen secured an agreement valued at USD 2.3 million with a large power generation and transmission company. Additionally, Newgen is providing a Knowledge and Records Management System to a customer in Singapore with a total contract value of SGD 1.7 million.

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