Newgen Software Technologies Q3 Review - Incremental Growth Hinges On Travel: ICICI Securities
Programmers work in an office. (Photographer James MacDonald/Bloomberg)

Newgen Software Technologies Q3 Review - Incremental Growth Hinges On Travel: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

As anticipated, Newgen Software Technologies Ltd. reported flat revenues in nine-months FY21 with significant margin improvement (from 8.1% in nine-month FY20 to 23.4% in nine-month FY21).

U.S./Asia-Pacific quarterly revenues grew 26%/15% YoY with the company reporting 11 new logo wins.

The company continues to invest aggressively across research and development, S&M and senior leadership personnel with expenses aggregating to approximately 23% of revenues in Q3.

Company hinted at improving demand environment across key industry segments. However, we believe mid-teen growth expectation for FY22E is contingent upon travel opening up and deal conversions happening in Q4 FY21E and Q1 FY22E.

Click on the attachment to read the full report:

ICICI Securities Newgen_Q3FY21 Results Update.pdf

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