Q2 2025 Newgen Software Technologies Ltd Earnings Call Transcript
Key Points
- Newgen Software Technologies Ltd (NSE:NEWGEN) reported a strong quarter with a 23% year-over-year revenue growth, reaching INR361 crores.
- The APAC region showed impressive performance with a 53% year-over-year growth for the second consecutive quarter.
- The company witnessed a substantial increase in license sales, growing by 52% year-over-year.
- Significant deals were closed, including a project worth INR25 crores with a large insurance company in India and a USD 1.5 million order from a financial leasing company in Saudi Arabia.
- Newgen Software Technologies Ltd continues to receive accolades, being recognized in Forrester's automation software landscape and content platform landscape for Q3 2024.
- Annuity-based revenue growth was softer this quarter at 14%, falling below 20% for the first time in ten quarters.
- The US market showed slower growth at 17% year-over-year, with challenges in closing deals and a slower deal velocity.
- The company's net trade receivables increased to INR442 crores, resulting in a net DSO of 217 days.
- There is a concern about the slower realization of revenues from large deals due to extended execution cycles.
- Despite strong growth in certain regions, the banking revenue growth was slightly lower than the company average, raising questions about sustained traction in the medium term.
Ladies and gentlemen, good day. And welcome to the Q2 F 525 analyst conference call of Newgen Software Technologies Limited hosted by Icici Securities.
As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call? Please signal an operator by pressing star then zero on att touched on phone. Please note that this conference is being recorded.
I now hand the conference over to Mrs Aditi patel from IC IC I Securities. Thank you and over to you, ma'am.
Thank you del good evening and welcome you all to the Q2 Fy '25 Earning Call of Newgen Software Technology. It's my pleasure to introduce the senior management team We have Mr. Diwakar Nigam Chairman and managing director, Mr T.S Varadarajan, full time director, Mr Virender Jeet, Chief Executive Officer, Mr Arun Gupta, Chief Financial Officer, and MS Deepti Mahara head Investor relation.
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