Newgen Software shares price rises over 2% on inking $1.48 million pact

Newgen Software shares rise: Share of Newgen Software rose as much as 2.21 per cent to hit an intraday high of Rs 1,027 per share. 

However, the stock were off highs, and were trading 0.55 per cent higher at Rs 1,010.20  per share. In comparison, BSE Sensex was trading 0.29 per cent lower at 76,984.22 levels. 

The uptick in share price came after Newgen Software announced that its US-based subsidiary has secured an order worth $1.48 million from a client. The company, however, did not reveal the name of the client. 

In an exchange filing, Newgen Software said, “We hereby inform you that Newgen Software Inc. (NSI), incorporated in the USA, a material Subsidiary of Newgen Software Technologies Limited, has entered into a Master Service Agreement with the client.”

 

The aggregate value of the agreement is $1,484,527, Newgen Software said in a statement.

Newgen Software specialises in delivering robust platforms for Business Process Management, Enterprise Content Management, and Customer Communication Management. The company’s solutions are pivotal in mission-critical environments across leading banks, governments, BPOs, IT companies, insurance firms, and healthcare organisations worldwide.

The company also provides a versatile platform empowering organisations to swiftly develop high-impact applications tailored to meet their strategic business objectives. These applications facilitate digital transformation and foster competitive advantages, supporting organisations in adapting to evolving market demands effectively.

Financial performance

Newgen Software’s consolidated net profit soared 32 per cent to Rs 105 crore in the March quarter of financial year 2024 (Q4FY24), as opposed to Rs 89 crore in the same quarter a year ago (Q4FY23).

The revenue from operations, driven by strong growth in Europe, Middle East, and Africa (EMEA) and India region, rose a little over 23 per cent annually to Rs 375.3 crore, as against Rs 305 crore in Q4FY23.

For the full FY24, the company's profit stood at Rs 251.6 crore, a 42.1 per cent rise from the previous fiscal's Rs 177.01 crore. Meanwhile, revenue for the same period was 27.7 per cent higher at Rs 1,243.82 crore.

The company also approved a final dividend of Rs 4 per equity share for FY24.

The market capitalisation of Newgen Software is Rs 14,161.05 crore, according to Bombay Stock Exchange (BSE).