Newgen Software Technologies shares a rise of 20 percent to Rs 269 on the BSE in intra-day trade on Wednesday. It is highest in 52-week as per the report of the July-September quarter (Q2FY21).
In Q2FY21, the company’s integrated net profit raised up to seven times Rs 29.2 crore despite reporting a fall of operating revenue at Rs 155 crore a year ago. The Newgen Software reported a profit of Rs 4.2 crore. Ebitda (earnings before interest, tax, depreciation, and amortization) margin boost to 26.5 percent due to robust cost rationalization initiatives undertaken by the company.
Trading volumes over the counter rose nearly 10-times, with a combined 1.7 million equity shares changing hands on the NSE and BSE. The stock was trading up 16 percent at Rs 262, with the S&P BSE Sensex down 0.13 percent.
In a statement, the Newgen Software management said that its strong performance holds its existing customers. In the major deals during the quarter, the company did a licensing deal with a major student loan financing organization in the US, and it is committed to ensuring equal access to financial aid to advance tertiary education. The company offered solutions for an international bank in Singapore and solutions for a US bank with a banking history of over 150 years.
On the way ahead, the company visions a definite shift towards digital transformation using low code development and cloud platforms. The management said, “The Company rapid application development is helping scalability and agility to an enterprise. The low code market is growing fast and businesses are expected to grow rapidly in the coming 2-3 years.”