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Newgen Software eyes over 20% FY25 revenue growth
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
CEO Virender Jeet said the mid-tier technology services provider’s roadmap to achieving the billion-dollar milestone involves three key pillars: expanding into high-potential markets such as the US and Europe, enhancing market presence and engagement within each account, and boosting efforts in building the insurance vertical, aiming for a contribution of 25% compared to 7-8% now.
Mid-tier technology services provider, Newgen Software, is eyeing revenue growth of over 20% in the current financial year with earnings before interest, tax, depreciation, and amortisation (EBITDA) margin of 23% or more.
The net margin is expected to be maintained at 20%.
The company’s stock has been hitting new highs after it reported a solid set of numbers on April 30. The shares ended nearly 6% higher today at ₹986 apiece.
Virender Jeet, CEO of the company said the strategic growth plan for the next 3 to 5 years is centred on transforming into a $1 billion product company based in India.
According to Jeet, Newgen’s roadmap to achieving the billion-dollar milestone involves three key pillars: expanding into high-potential markets such as the US and Europe, enhancing market presence and engagement within each account, and boosting efforts in building the insurance vertical, aiming for a contribution of 25% compared from 7-8% now.
The company’s traditional markets, India and the Middle East, performed well in the January-March period.
The company reported a higher single-digit growth from Asia–Pacific (APAC) and the US.
“Next year seems to be fine. Our traditional markets are doing well, the funnel out there is quite strong. We don’t see any reason why we will have any kind of a slowdown in India or in the Middle East. APAC – we are very hopeful that next year is going to be stronger than what we have and US is still a work-in-progress,” he said.
Newgen’s current focus is on targeting banks with assets ranging from $50 to $100 billion in the United States.
Newgen currently has a revenue run rate of $180 million.
Newgen Software proposed a final dividend of ₹4 per equity share for the fiscal year 2024, with the record date for dividend payment to be announced later.
The current market capitalisation of the company is ₹13,788 crore.
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