ICICI Securities: Newgen Software Technologies Performs Well In Q1; Continues To Invest In R&D

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Newgen Software Technologies Ltd.’s revenues were flat on YoY basis with margins improving 520 basis points to 7.4% in Q1 FY21. Revenues from U.S. grew by 36% YoY with key impetus coming from deployment under the Paycheck Protection Program (PPP), which also helped the company win new logos. (Growth ex-PPP was 16-18% YoY in U.S.). Annuity-based offerings gained traction and grew 11% YoY and comprise 66% of revenues (Q1 FY20-60%). Newgen won 22 new logos in Q1 with the company targeting 20-25 new customers in US ex-PPP in FY21.Newgen continues to invest in business across research and development and sales and marketing with expenses in aggregate forming 30% of Q1 revenues. Though net day sales outstanding (DSO) increased by 10 days to 122 due to some challenges in collections, the company expects DSO days to gradually come down..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

ICICI Securities: Newgen Software Technologies Performs Well In Q1; Continues To Invest In R&D

ICICI Securities: Newgen Software Technologies Performs Well In Q1; Continues To Invest In R&D

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