The shares of leading AI-enabled solution providers gained up to 4 percent after the company executed an agreement with a USA-based Healthcare Client.
With a market capitalization of Rs 22,629.07 crore, the shares of Newgen Software Technologies Ltd were trading at Rs 1,613.00 per share, decreasing around 2 percent as compared to the previous closing price of Rs 1,640.80 apiece.
Reason for rise
According to the company filing, Newgen Software Technologies Ltd has signed an Enterprise Content Management agreement with a healthcare client situated in the United States. The total value of the deal for the first three years is USD 2,576,284.
Financial Performance
Analyzing a company’s financial performance, revenue increased by 25 percent from Rs 264 crore in Q2FY24 to Rs 331 crore in Q2FY25, during the same time frame, the company’s net profit increased significantly by 50 percent from Rs 44 crore to Rs 66 crore.
In Q2 FY’25, the APAC region led with 53% Y-o-Y growth, followed by EMEA at 21%, India at 19%, and the US at 17%. US growth stemmed from a restructured strategy targeting larger accounts, contributing to overall robust global performance across key markets.
Business Segments Performance
The company’s core focus remains banking and financial services, with growing momentum in the insurance and government sectors. Key deals include a ₹25 crore project for a major Indian insurer and a $1.5 million order from a leading US financial institution, highlighting its expanding market presence and diversified portfolio.
Product Developments
The company continues to gain traction in existing accelerator lines, including SME lending, supply chain finance, and trade finance. It launched Islamic retail and SME financing tools in the Middle East and released updated versions of OmniDocs and OmniXtract, alongside enhancements in video KYC and NewgenONE Marvin APEX.
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Market Dynamic
The company is focused on long-term strategies, and building expertise in AI, GenAI, and machine learning. Management is optimistic about sustainable growth, driven by the ongoing digital transformation trends across industries, which are expected to support long-term success and innovation.
Customer Acquisition and Retention
The company’s H1 FY’25 order book grew by 20%-22%, focusing on acquiring new logos and upselling to existing customers, with 50% of growth expected from upsells. The average deal size ranges from $700,000 to $2 million, with a recurring annuity of 20% for maintenance and support.
Company snapshot
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.
Written by Abhishek Singh
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