Calling the first quarter muted, Newgen Software chief executive office, Virender Jeet confirms the company has returned to its "normal growth trajectory."
In a conversation with NDTV Profit, Jeet noted that the company has a consistent growth pattern. He went in to attribute the recovery to successful sales and marketing efforts, which have secured new deals and acquisitions. However, he admitted that the growth rate in the first half of the year was slowed by increasing decision-making times for larger deals, causing some opportunities in the sales funnel to be delayed.
Looking ahead, Jeet is optimistic that the decision-making cycle "should get better over the next few quarters." He anticipates a renewed interest in automation solutions, especially in the US, correlating with "credit revival in regions like America."
In India, a major driver of their recent growth has been the Public Sector Undertaking banks, which are now being joined by private banks upgrading their systems. Jeet expects India's banking sector to see a further revival, though he advises a "wait and watch" approach due to prevailing uncertainties regarding trade and regulations.
The Indian market remains a significant opportunity for Newgen, which is actively working on new products related to trade automation and payments. As a product company, Jeet emphasises that their primary focus is on investment-led growth. "The business has margins but our interest is to invest in growth," he stated, adding that they are exploring both organic and inorganic avenues for future deployment.
Newgen Software, according to the CEO has secured "early wins across AI spaces" and is prepared to increase both investment and manpower to support future product development in the AI domain.
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