Newgen Software shares hit record high on Q1 earnings

Shares of Newgen Software Ltd extended gains in the afternoon session after the software firm reported its earnings for the quarter ended June 2023. Newgen Software’s Q1 net profit zoomed 57% in the June quarter to Rs 30.2 crore from Rs 19.2 crore in the June quarter of the last fiscal. The company logged the highest quarterly year-on-year revenue growth of 34% to Rs 252 crore against Rs 187 crore revenue in the June 2022 quarter.

The stock hit a record high of Rs 757.20, rising 10.91% intraday on BSE. Newgen Software stock opened higher at Rs 685. Market cap of the firm rose to Rs 5027 crore. Total 2.18 lakh shares changed hands amounting to a turnover of Rs 15.66 crore on BSE. Later, the stock ended 5.26% higher at Rs 718.60 on BSE.

The IT stock has surged 87.48% in a year and gained 98.40 % in 2023. It has zoomed 318.03% in three years.

In terms of technicals, the relative strength index (RSI) of Newgen Software stood at 62.3, signaling it's trading neither in the overbought nor in the oversold zone. Newgen Software stock has a one-year beta of 0.7, indicating very low volatility during the period. Newgen Software shares stand higher than the 5 day, 10 day, 20 day, 50 day, 100 day and 200 day averages.

The firm said it logged 13 new customer logo additions in the quarter

It received key customer orders, which include:

1. Providing digital account opening solution for a privately held bank in the Americas region.

2. Providing Lending Origination and Management Solution to a leading diversified business group in Saudi Arabia operating across 7 core sectors.

3. Selected for Trade and Supply Chain Finance Solution to a leading financial institution in the UAE market.

4. Broad based growth across all regions. APAC market witnessed a growth of 46%. EMEA, US and India markets witnessed growth of 38%, 36% and 25% respectively.

Additionally, the firm on Tuesday said it received a purchase order for the implementation of end-to-end trade finance including customer web portal & supply chain finance solution. The value of the order is Rs 34.64 crore.

Newgen Software Technologies Limited is a provider of a unified digital transformation platform (NewgenONE) for automating the end-to-end process and comprehensively managing content and communications, backed by artificial intelligence (AI)-based cognitive capabilities, governance and a robust integration ecosystem. The core products of NewgenONE platform are Contextual Content Services (ECM), Low Code Process Automation (BPM), Omnichannel Customer Engagement (CCM) and Artificial Intelligence Cloud.

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