Newgen Software’s third quarter consolidated net income rises 35% to Rs 48 crore

Newgen Software's third quarter consolidated net income rises 35% to Rs 48 crore

On a sequential basis, net profit was higher about 28 per cent from Rs 37.4 crore in September quarter, while revenue was up 9.2 per cent from Rs 185.5 crore.

Newgen Software Technologies on Tuesday said its merged net benefit expanded around 35% to Rs 47.8 crore in December quarter 2021-22. The organization likewise reported the securing of Number Theory Software. Newgen enrolled a net benefit of Rs 35.41 crore in December quarter 2020-21. Its income from operations grew 9.1 percent to Rs 202.5 crore in the second from last quarter of 2021-22 from Rs 185.51 crore in the year-prior period, Newgen said in a regulatory filing.

In a separate filing, Newgen said its board has approved the purchase of 100 per cent of the paid-up equity shares of Number Theory Software from its existing shareholders, Tarun Gulyani and Rajan Nagina.

Post completion of the acquisition – which is subject to customary conditions precedent – the target company will become a wholly-owned subsidiary of Newgen, it added.

”Newgen will be making a closing payment aggregating to approximately Rs 7,02,73,340 to the promoters of target company towards 100 per cent of the equity shares. Further, the founders would receive deferred amount of an aggregate sum of Rs 7,02,73,340 in a staggered manner over a period of three years, subject to certain conditions and their continued employment with Number Theory/Newgen,” the filing said.

It added that as a part of conditions precedent to the closing of the transaction, Newgen will also grant ICD of approximately Rs 2.41 crore to Number Theory to settle its outstanding dues such as dues to debentures holders, option holders, bank loan, directors’ loan etc.

Number Theory brings AI (artificial intelligence) to enterprises through its Enterprise AI platform and data science capabilities to help its customers accelerate innovation and grow revenue.

Its revenue in 2020-21 stood at Rs 3.32 crore.

The acquisition will offer new revenue opportunity/larger wallet share from existing enterprise customers; supplement solution/ accelerators with AI/ML(machine learning) based capability, solution enhancements; and enable process AI enhancements – process discovery, process mining, self-learning automation, capture end-to-end process data into data lakes for further analytics, the filing said. ”Number Theory’s platform, AI Studio, brings intuitive AI/ML to every enterprise, while unifying the entire lifecycle of data engineering, from data preparation to model development and monitoring,” Newgen Software CEO Virender Jeet said.

This acquisition will further strengthen Newgen’s low code digital transformation platform, NewgenONE, with AI/ML modeling and data analytics capabilities, he added. Speaking about the results, Newgen Software Chairman and MD Diwakar Nigam said the third quarter has been on the path of continuous progression amid ongoing uncertain environment.

”The quarter witnessed 20 per cent year-on-year growth in subscription revenues however, several of these orders have long gestation leading to deferment of revenues. We continue to see major wins and expansion of business in our existing customers and added 17 new logos as well,” he added. Overall, in the first nine months of the year, the company clocked in revenues of Rs 548 crore and profit after tax of Rs 107 crore, he said.

Subscription revenues stood at Rs 61.7 crore (up 20 per cent y-o-y), while annuity revenues were at Rs 111.6 crore (up 11 per cent y-o-y). Revenue from the sale of products/licence was reported at Rs 49.8 crore (up 37 per cent y-o-y), and implementation and digitisation revenues were at Rs 41.2 crore. The company logged 17 new logo wins in the quarter under review across geographies.

Disclaimer: If you need to edit or update this news from compsmag then kindly contact us Learn more
We will be happy to hear your thoughts

Leave a reply

Compsmag - Latest News In Tech and Business
Logo