News highlight: Newgen Software Financial Results-FY 18 | PAT up by 42 % at Rs 72.89 Cr | Revenue up by 20 % at Rs 512 Cr announced in New Delhi, India – 17 May 2018
The management of Newgen Software Technologies Ltd. announced results for the Quarter and Year ended 31 March 2018 [Q4 FY’18] at its Board Meeting held on 17 May 2018.
Key Financial Highlights (FY’18)
- Consolidated Revenue from operations up by 20% YoY to reach Rs 512.43 crores as compared to Rs 427.10 crores in FY’17 on the back of broad based growth and customer acquisitions across geographies.
- Revenue from Sale of Products/ License witnessed a growth of 17% YoY to reach Rs 95 crores
- Annuity Revenue streams (ATS/AMC and Support) witnessed a growth of 25% YoY to reach Rs 209.58 crores
- SaaS revenues witnessed a robust growth of 3X to reach Rs 11.35 crores and contributed 2% to the revenue from operations
- Implementation & Digitization revenues witnessed an increase of 11% to reach Rs 154.54 crores
- EBIDTA(adjusted for other income) up by 39% YoY to Rs 97.54 crores. EBIDTA Margin improved to 19.0% compared to 16.4% in FY’17
- Profit after tax up by 42% YoY to reach Rs 72.89 crores due to increase in scale and operational efficiencies. PAT Margin improved to 14.2% compared to 12.0% in FY’17
- Cash from operations increased to Rs 60.11 crores as on 31 March 2018 compared to Rs 36.20 crores as on 31 March 2017 due to improvement in working capital cycles
- Basic Earnings per shares improved to Rs. 11.44 in FY’18 compared to Rs 8.26 in FY’17
Key Financial Highlights (Q4 FY’18)
- Consolidated Revenue from operations were Rs 183.83 crores
- EBIDTA (adjusted for other income) was Rs 76.82 crores with EBIDTA Margins of 41.8%. The business is seasonal in nature with substantial revenues booked in the second half of the year
- Profit after tax at Rs 59.46 crores with PAT Margins of 32.3%
Key Business Highlights
- Strengthened global presence: Strong interest for products witnessed across geographies with broad based growth (YoY) in APAC (47%), EMEA (45%), USA (7%) and India (7%)
- Substantial customer wins made during the year: 120 New customers added during FY’18 compared to 98 in FY’17; Total active customers (TTM) were 520+ as of March’18
- Company continues to strengthen the horizontal product platform with vertical service accelerators: Banking & Financial Services vertical continued to be a stronghold witnessing 36% YoY growth; Revenue from emerging verticals -Healthcare and Insurance witnessed a growth of 81% and 6% respectively
- Scaling Cloud/ Saas business: By increasing penetration and strengthening the platforms to meet all compliance/ regulatory requirements. SaaS revenues witnessed robust growth of 3X to reach Rs 11.35 crores, contributing 2% to revenue from operations (Customer base increased from 8 to 22, over the last one year with large wins in USA)
- Industry Leadership: Positioned as a ‘Leader’ in Dynamic Case Management, Digital Process Automation and Enterprise Content Management by Forrester, a leading Independent Research Firm in its WaveTM It has also been positioned by Gartner in its Magic Quadrants. During the year, the Company has been named as a “Niche Player” in Magic Quadrant for Content Services Platform and a “Visionary” in Magic Quadrant for Intelligent Business Process Management Suites.
- Delivering growth through constant focus on innovation: Our new offerings include Mobility (Newgen Enterprise Mobility Framework), Virtual Repository Services, Dynamic Case Management, RPA with BPM, Digital Sensing and Flexible Designing and Authoring
- Built high-level domain expertise and created robust frameworks for Retail and Corporate lending which are successfully operating across banks and geographies
Speaking about the results, Mr. Diwakar Nigam, Chairman & Managing Director, Newgen Software Technologies Ltd. said – “We are pleased to present the results of FY’18 and would like to take this opportunity to thank all our investors for showing their faith in us. In FY’18, we have continued our robust growth, profitability and cash generation momentum and witnessed strong interest across all geographies. We have witnessed large customer acquisitions in ‘Banking & Financial Services’ domain including some Fortune 500 companies. Our focus continues to be on innovation and we have launched new products/ features creating a highly connected and digital workplace”.