Newgen Software share price gained 2% on Thursday. The stock price reached ₹986 apiece on March 27. This followed the company’s announcement of securing an Enterprise Content Management Solution contract worth US$1.28 million. The contract is expected to be executed over the coming 5 years.
Over the past 6 months, Newgen Software share prices have faced pressure. They have tumbled by over 30%, in contrast to the Nifty 50 index, which declined by 10% during the same period.
Adding to its recent business momentum, Newgen Software secured another agreement last month. The company executed a Statement of Work (SoW) with a US-based client. This 3 year agreement is valued at US$1.93 million. It has further strengthened Newgen’s position in the global market.
In the third quarter, Newgen Software witnessed a 31% growth in net profit. It surged to ₹89 crore from ₹68 crore during the same period last year. This growth was driven by strong operational execution and improved profit margins.
Revenue for the quarter also climbed by 17.7% to ₹381 crore. This is compared to ₹323.7 crore last year. The increase in revenue was driven by rising demand for Newgen’s digital transformation solutions. This spans across multiple sectors.
On the operational front, the company posted a significant jump in EBITDA. Earnings Before Interest, Taxes, Depreciation, and Amortisation rose by 40.2%. EBITDA soared to ₹107.8 crore. Meanwhile, EBITDA margins expanded by 28.3%. This is a notable up from 23.8% last year, driven by improved cost efficiencies.
Newgen Software’s stock saw a rise after a new contract win. However, it has faced downward pressure recently. Jefferies downgraded the stock despite strong Q3 results. Valuation concerns and moderated growth expectations were cited.
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Published on: Mar 28, 2025, 9:08 AM IST
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