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- 05 May 2025
- ICICIdirect Research
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NEWGEN REPORTED REVENUE OF ₹430 CRORE, UP 13% QOQ
NEWGEN - 1154 Change: 35.80 (3.20 %)News: Newgen reported revenue of ₹430 crore, up 13% QoQ/14.6% YoY. Product/ License revenue (23% of mix) reported a strong growth of 31.7% YoY to ₹99 crore and Implementation revenues (26% of mix) grew by 24.1% YoY to ₹112 crore. Subscription revenues (ATS/AMC +SaaS) reported 10.3% YoY revenue growth wherein SaaS revenue grew by 14.6% YoY while ATS/AMC grew by 8.2% YoY. Annuity revenues (ATS/AMC+ SaaS+ Support) reported growth of 4.3% YoY to ₹219 crore. Geography wise on a YoY basis, the growth was led by APAC (16% of the mix), US (21% of the mix) and India (31% of the mix) which grew 76%, 39% and 11%, while EMEA (32% of the mix) declined by 9%. The company added 26 new logos in the quarter. EBITDA margin for the quarter stood at 31.9%, up ~350 bps QoQ and PAT came at ₹108 crore, up 22% QoQ. For FY25, the company reported revenues of ₹1,487 crore, up 19.5% YoY. EBITDA margin came at 25.3%, up ~210 bps YoY and PAT stood at ₹315 crore, up 25% YoY.
View: Revenue growth in FY25 was largely broad-based, with the exception of the EMEA region, which saw a decline due to weaker-than-expected closure of license deals. The overall topline was driven by strong momentum in license and implementation revenues, which are expected to translate into annuity revenues over time. However, the annuity revenue mix declined temporarily as some large deals saw delayed annuity kick-ins—these are anticipated to ramp up from Q3FY26 onwards. Sector-wise, banking remained the core growth driver despite a subdued Q4 performance (+10% YoY), while insurance and government are expected to gain share going forward. Bookings for FY25 grew at a more moderate pace of 10% YoY, compared to 23% in FY24, making it a key metric to track. Nevertheless, management remains confident of sustaining momentum in FY26, targeting 20% annual growth backed by a robust order book.
Impact: Neutral