newgen software technologies: Newgen Software Q1 Results: Profit falls 11% to Rs 19 crore

IT company on Wednesday posted about an 11 per cent decline in consolidated profit to Rs 19.17 crore for the first quarter ended June 2022. The company had posted a profit of Rs 21.6 crore in the same period a year ago.

The consolidated revenue from operations increased by about 18 per cent to Rs 187.89 crore during the reported quarter from Rs 159.53 crore a year ago.

“FY23 has started on a strong note with revenue growth of 18 per cent in the first quarter (Q1) on a year-on-year basis with cloud and subscription revenues growing at 33 per cent in the Q1 on YoY basis,” Newgen Software Technologies chairman and managing director Diwakar Nigam said in a statement.

He said given the seasonal nature of the company’s business, the first quarter is a lean period for it.

“On the cost front, there has been an impact of elevated employee costs and gradually normalising travel expenses, however, Q1 margins are not a reflection of the year margins. We strongly believe that we have a resilient business model in place, with our products having significant leverage across both sides of the market opportunity – revenue enhancement and cost optimisation,” Nigam said.