Shares of Newgen Software Technologies surged 13.8% to hit a 52-week high of ₹1,060 apiece on the BSE on Tuesday after the digital transformation service provider reported a 58% year-on-year (YoY) increase in its net profit to ₹47.8 crore in the September quarter as against ₹30 crore in the same period last year.

During the quarter under review, the company's revenue from operations stood at ₹293.3 crore, up 16.5% as against ₹226.11 crore in the same period last year driven by strong growth in banking and financial services. According to the company, total annuity revenue streams (ATS/AMC, support, cloud/SAAS and subscription license stood at ₹179 crore, with strong growth in support revenues. The subscription revenues (ATS/AMC, cloud and subscription license) stood at ₹90 crore.

The company's total income in the September quarter surged by 30% year-on-year to ₹302.57 crore, as against ₹232.70 crore. The company's total expenses during the September quarter were up 24.6% YoY to ₹243.96 crore as against ₹195.79 crore in the same period last year.

"We continue to build upon the business momentum with four consecutive high growth quarters now. We witnessed a strong Q2 performance with 30% YoY revenue growth and margin expansion compared to the same quarter last year," says Diwakar Nigam, chairman & MD, Newgen Software Technologies.

"We have been making deeper penetration through our Digital Lending Platform in the banking sector and have received high-value orders during the quarter as market activity picks up in this segment across different geographies. We are becoming a preferred and trusted platform in the banking ecosystem for accelerating their business. We are further working on expanding our market footprint through the opening of new offices," he adds.

According to the company, the Delhi branch of the National Company Law Tribunal (NCLT) has given approval for the merger of Number Theory Software Private Limited (NTSPL), a wholly-owned subsidiary of the company. "Upon the sanction becoming effective from the appointed date i.e. 01.04.2022 as provided under the Scheme, NTSPL stands dissolved without undergoing the process of winding up," says the company.

The share price of the company closed 12.20% higher at ₹1,045. At present, the share price of the company is trading 218% higher than the 52-week low of ₹327.95, which the company touched on November 10 last year. Following the development, the market capitalisation of the company stood at ₹7,277.14 crore as 63,457 shares exchanged hands on the BSE, as against the two-week average of 0.11 lakh shares. In the past one month, three months and six months, the company has given, 19.51%, 50.96% and 187.56% in returns as per the data available on the BSE.

Newgen Software is a software service provider. The company develops and deploys, content-driven, and customer-engaging business applications on the cloud through its low-code application platform.

Newgen Software Technologies Profit

Newgen Software shares surge 14% on strong Q2 results