Newgen Software reports 23% rise in Q2 revenues to INR 361 Cr

Newgen Software reported strong financial results for the second quarter of the fiscal year 2025, with notable growth in both revenues and profits.

The company's revenues from operations reached INR 361 crore, marking a 23% increase compared to the same period the previous year, where revenues totaled INR 293 crore. Profit after tax also rose significantly by 47%, amounting to INR 70 crore, up from INR 48 crore during the same quarter last year.

Revenue from annuity streams, which includes annual technical support, annual maintenance contracts, support, and cloud/SaaS subscriptions licenses, accounted for INR 205 crore. Meanwhile, revenues from the sale of products and licenses were reported at INR 77 crore, and revenue from implementation and other services stood at INR 79 crore.

Diwakar Nigam, Chairman and Managing Director of Newgen Software Technologies, commented on the performance, "We are excited to report another strong growth quarter in terms of revenue and profits. License revenues have grown by 52% Year-on-Year with a number of significant deal closures. We continue to see customers expanding their adoption of our platform and solutions, increasing the overall lifetime value of our customer relationships. During the quarter, we have seen continuous traction across our existing accelerator lines, including Customer Onboarding, SME Lending, Supply Chain Finance, Payment Hub and Trade Finance. We are also strengthening our footprint in the emerging markets through newer solutions."

Virender Jeet, Chief Executive Officer, added, "All our key markets have performed well during the quarter with APAC witnessing strong growth for two consecutive quarters now. While Banking & Financial Services continue to be our core verticals, we saw increasing traction in the Insurance and Government segment in the quarter."

In business developments during the quarter, Newgen Software secured several significant deals. These include a project worth approximately INR 25 crore with a large insurance company in India for their system of engagement, and providing an Enterprise Content Management Solution to a top financial institution in the United States, with an aggregate order value of USD 1.5 million.

Additional business highlights included an order from a leading financial leasing company in Saudi Arabia valued at USD 1.5 million for a loan origination and collection system, and an INR 16.9 crore order from a large infrastructure financing services company in India. The company also entered into a contract with Singapore's leading financial institution in the APAC region.

Furthermore, during the quarter, the company added eight new logos to its client portfolio and received recognition in Forrester's "The Task-Centric Automation Software Landscape, Q3 2024" and "The Content Platforms Landscape, Q3 2024."