Shares of NewGen Software hit the 5 percent upper circuit in trade on Tuesday, to close at Rs 900 after it posted healthy growth in Q3 results. Third-quarter profit after tax was up nearly 45 percent year-on-year at Rs 68 crore, while revenue was up 27 percent at Rs 324 crore.
Total revenue for 9 months stands at Rs 869 crore an increase of 30 percent, while profit after tax stands at Rs 146 crore, up 51 percent year on year. A statement from the company highlights that it strengthened its collaboration with an Indian public sector bank, securing an order value of Rs 18 crore for trade finance and supply chain finance solutions. It also won an order from a financial services industry player for Rs 14 crore, and another from Rs 9 crore from a bank in the Philippines. Other client additions include a bank in Singapore, and a healthcare company in the US.
Speaking about the company’s performance, Diwakar Nigam, chairman and managing Director at Newgen Software Technologies Ltd said: “We are witnessing tremendous opportunities in the lending and trade finance space. We have also maintained robust profitability and strong cash flow generation, highlighting the financial strength and resilience of our operations. Through our investments in innovation, people, and customer-centric approach, we have been nurturing and expanding our existing customer relationships, along with adding 38 new logos in nine months of FY’24.”
Last month, global brokerage firm Jefferies revised its target price on Newgen. Jefferies, while maintaining its ‘buy’ call, raised the target to Rs 1,740 per share from Rs 1,275 per share.