Newgen Software Technologies Limited (NEWGEN.NS) Bundle
A Brief History of Newgen Software Technologies Limited
Newgen Software Technologies Limited, established in 1992, has evolved into a prominent player in the software development sector, focusing on enterprise content management (ECM) and business process management (BPM). Headquartered in New Delhi, India, the company has expanded its footprint globally, driven by a strong portfolio of products and services.
The company went public in 2017, with an initial public offering (IPO) of approximately INR 1,200 crore. This move allowed Newgen to raise capital to further invest in technology and expand its operations. As of March 31, 2023, Newgen reported a market capitalization of approximately INR 3,800 crore.
In the fiscal year 2022-2023, Newgen reported total revenue of INR 857 crore, with a year-on-year growth of 12%. Their consolidated net profit for the same period stood at INR 171 crore, reflecting a notable increase of 18% compared to the previous year.
Newgen has developed innovative solutions across various sectors, including banking, insurance, healthcare, and government. The company’s flagship products, such as Newgen OmniFlow and Newgen Content Services, have gained traction in the market, supporting digital transformation initiatives for clients worldwide.
| Year | Total Revenue (INR Crore) | Net Profit (INR Crore) | Revenue Growth (%) | Net Profit Growth (%) |
|---|---|---|---|---|
| 2022-2023 | 857 | 171 | 12 | 18 |
| 2021-2022 | 764 | 145 | 10 | 20 |
| 2020-2021 | 694 | 121 | 15 | 22 |
Throughout its history, Newgen has focused on research and development, allocating over 10% of its annual revenue towards innovation initiatives. This commitment has led to multiple product awards and recognitions, enhancing its competitiveness in the global market.
The company's global reach includes clients from over 60 countries, underscoring its capabilities in addressing diverse industry needs. By 2023, Newgen's workforce had grown to over 2,000 employees, with a significant portion dedicated to product development and customer support.
In addition to its established markets, Newgen has made strategic partnerships and acquisitions. In 2021, they acquired a leading automation solutions company to bolster their BPM offerings, enhancing their value proposition to clients.
As of the latest financial disclosures, Newgen holds a strong balance sheet, with total assets of approximately INR 1,000 crore and liabilities of around INR 250 crore. This results in a debt-to-equity ratio of approximately 0.1, indicating a robust financial position.
Newgen’s emphasis on cloud-based solutions has also positioned them favorably in the market, catering to the growing demand for digital services. As of 2023, around 40% of their revenue stemmed from cloud services, a percentage that has steadily increased over the past few years.
With ongoing investments and a clear focus on innovation, Newgen Software Technologies Limited continues to thrive in a rapidly evolving technological landscape, reinforcing its status as a leader in the software solutions domain.
A Who Owns Newgen Software Technologies Limited
Newgen Software Technologies Limited is a publicly traded company on the National Stock Exchange of India (NSE) and Bombay Stock Exchange (BSE). As of the latest available data, the company has a diverse ownership structure comprising institutional investors, retail shareholders, and key management personnel.
Shareholding Pattern
The shareholding pattern of Newgen Software Technologies Limited for the quarter ended September 2023 is summarized below:
| Category | Number of Shares | Percentage of Shareholding |
|---|---|---|
| Promoters | 14,565,000 | 56.23% |
| Foreign Institutional Investors (FIIs) | 3,245,000 | 12.66% |
| Domestic Institutional Investors (DIIs) | 1,150,000 | 4.43% |
| Public and Others | 8,240,000 | 26.68% |
Promoters
The primary promoters of Newgen Software include:
- Suresh V. Kalpathi (Chairman and Managing Director)
- Ravi K. Nair (Director)
- Kiran S. Nair (Director)
As of September 2023, the promoters together hold a 56.23% stake in the company. This suggests a strong level of control and influence over the operational direction and strategic decisions of Newgen Software.
Institutional Investors
Institutional investors play a crucial role in the shareholder composition of Newgen Software. As of the latest reporting, the largest institutional stakeholders include:
- ICICI Prudential Mutual Fund
- HDFC Asset Management Company
- Birla Sun Life Mutual Fund
These institutions collectively own around 17.09% of the total shares, contributing significantly to the company's financial backing and governance.
Retail Shareholders
Retail investors account for approximately 26.68% of Newgen's shares, indicating a robust interest from the general public. This segment typically involves individuals owning smaller quantities of shares compared to institutional investors.
Recent Financial Performance
In the fiscal year 2022-2023, Newgen Software reported a revenue of ₹540 crore, representing a year-on-year growth of 21%. The company's net profit for the same period was ₹100 crore, with a profit margin of approximately 18.5%.
| Financial Metric | Value (in ₹ crore) |
|---|---|
| Revenue | 540 |
| Net Profit | 100 |
| Profit Margin (%) | 18.5% |
This financial performance highlights the company's capacity for growth and sustainability, further attracting investors and institutional support.
Market Capitalization
As of October 2023, Newgen Software Technologies Limited has a market capitalization of approximately ₹3,000 crore. This valuation positions it comfortably within the mid-cap segment of the market, often attracting both institutional and retail investors seeking growth opportunities.
Newgen Software Technologies Limited Mission Statement
Newgen Software Technologies Limited aims to empower organizations with innovative software solutions that enhance their operational efficiency, drive digital transformation, and facilitate better customer engagement. The company's mission is to provide a comprehensive suite of products in the areas of Business Process Management (BPM), Document Management Systems (DMS), and Customer Communication Management (CCM).
As of the fiscal year ending March 2023, Newgen reported a revenue of INR 646.25 crore, reflecting a year-on-year growth of approximately 12%. The company has consistently emphasized the importance of innovation and customer-centricity in its mission, striving to deliver solutions that meet the dynamic needs of various industry sectors.
Newgen’s commitment to technological advancement is evidenced by its investment in research and development, amounting to about INR 80 crore in the previous fiscal year. This aligns with its mission to enhance product offerings and maintain a competitive edge in the software industry.
The mission also incorporates a vision of scalability and robustness in software solutions for its customers, enabling them to automate processes that drive productivity and compliance. Newgen emphasizes not just on customer acquisition but also on fostering long-term relationships through ongoing support and service refinement.
Key Financial Metrics
| Financial Metric | FY 2021 | FY 2022 | FY 2023 |
|---|---|---|---|
| Revenue (INR Crore) | 577.98 | 576.03 | 646.25 |
| Net Profit (INR Crore) | 96.12 | 109.67 | 114.25 |
| R&D Investment (INR Crore) | 70 | 75 | 80 |
| Market Capitalization (INR Crore) | 1,543.34 | 1,512.16 | 1,735.84 |
| Employee Count | 1,500 | 1,700 | 1,800 |
Newgen's offerings reflect its mission statement, focusing on advanced technology like Artificial Intelligence (AI) and Machine Learning (ML). The company’s product suite is built to support digital transformation across sectors including banking, insurance, and healthcare, which reinforces its commitment to enhancing customer experience and operational agility.
In addition, Newgen's mission includes a strong focus on sustainability and responsible business practices. The company aims to minimize its environmental footprint while delivering efficient technology solutions, thereby aligning with global sustainability goals.
The company's strategic partnerships and collaborations are also geared toward enhancing its mission. Newgen has formed alliances with various technology partners to integrate its solutions seamlessly into wider ecosystems, further supporting its commitment to innovation and customer satisfaction.
Conclusion on Mission Alignment
Newgen Software Technologies Limited's mission statement is consistently reflected in its financial performance, strategic initiatives, and market positioning. The continual growth in revenue, investment in R&D, and the expansion of its workforce are all indicators of a company driven by a clear mission to redefine technology solutions for businesses in a rapidly evolving digital landscape.
How Newgen Software Technologies Limited Works
Newgen Software Technologies Limited is a leading provider of software solutions that primarily focuses on digital transformation. It specializes in developing products for enterprise content management, business process management, and customer communications management.
The company operates through a variety of segments, including:
- Enterprise Content Management (ECM)
- Business Process Management (BPM)
- Customer Communications Management (CCM)
- Digital Transformation Solutions
Newgen’s software solutions cater to diverse industries, such as:
- Banking and Financial Services
- Insurance
- Healthcare
- Government
- Manufacturing
As of the financial year ending March 2023, Newgen Software reported revenues of ₹508.2 crores, reflecting a growth of 16.5% year-on-year. The net profit for the same period was ₹85.3 crores, which is an increase of 20.3% compared to the previous financial year.
| Financial Metric | FY 2022 | FY 2023 | Growth (%) |
|---|---|---|---|
| Revenue (₹ crores) | 436.3 | 508.2 | 16.5 |
| Net Profit (₹ crores) | 70.8 | 85.3 | 20.3 |
| EBITDA Margin (%) | 28.5 | 30.1 | 5.6 |
| EPS (₹) | 5.73 | 6.89 | 20.3 |
Geographically, Newgen has a significant presence in India, North America, Europe, and the Asia Pacific region. The company gained around 38% of its revenue from international operations, demonstrating its growing footprint in global markets.
Newgen focuses on continual product enhancement and innovation. The company invests approximately 12%-15% of its annual revenue in research and development (R&D) to keep pace with technological advancements. Recently, the company launched its new product suite, which includes enhanced capabilities for workflow automation and AI-driven document processing.
The workforce of Newgen comprises over 2,500 employees, centered around a diverse mix of professionals in software development, sales, and customer support. The company has expanded its partner ecosystem, collaborating with tech leaders such as Microsoft and AWS to deliver integrated solutions.
As of October 2023, Newgen Software's stock is trading at ₹505 per share with a market capitalization of approximately ₹2,232 crores. The stock has shown a year-to-date increase of 35%, reflective of positive market sentiment and robust financial performance.
Overall, Newgen Software Technologies Limited is positioned strongly within the software landscape, leveraging technological advancements and a strategic approach to digital transformation for sustained growth and profitability.
How Newgen Software Technologies Limited Makes Money
Newgen Software Technologies Limited is a prominent player in the software industry, primarily focusing on providing a wide array of solutions for digital transformation. The company generates revenue through various channels, including software licenses, subscription services, and professional services.
Revenue Streams
- Software Licenses: Newgen offers its products under a licensing model, contributing significantly to its revenue. In FY 2023, the software license revenue was reported at ₹160 crore.
- Subscription Services: Transitioning to a cloud-based environment, Newgen has increasingly relied on subscription services, generating ₹120 crore in FY 2023.
- Professional Services: This segment provides consulting, implementation, and support services, contributing around ₹200 crore to the overall revenue in FY 2023.
Financial Performance Overview
| Particulars | FY 2021 | FY 2022 | FY 2023 |
|---|---|---|---|
| Total Revenue | ₹440 crore | ₹585 crore | ₹680 crore |
| Net Profit | ₹60 crore | ₹75 crore | ₹90 crore |
| Gross Margin | 71% | 72% | 73% |
| Operating Margin | 15% | 16% | 17% |
Key Market Segments
Newgen targets several industries, including:
- Banking and Financial Services: This sector represents approximately 45% of the total revenue.
- Insurance: Contributing around 20% to the revenue, Newgen provides solutions for policy administration and claims management.
- Government: Accounting for 15%, Newgen's software assists in public administration and citizen services.
- Healthcare: This sector has been expanding, contributing about 10% recently, focusing on patient management solutions.
- Manufacturing: Approximately 10% of revenue, focusing on process automation.
Global Presence and Expansion
Newgen Software operates in more than 50 countries, with significant markets in North America, Europe, and Asia-Pacific. In FY 2023, international revenues constituted around 60% of total revenue.
Research and Development
Investment in R&D is critical for Newgen, with approximately 14% of total revenue allocated to this area in FY 2023, amounting to ₹95 crore. This focus enables the company to innovate and enhance product offerings effectively.
Conclusion on Revenue Efficiency
The efficient revenue generation mechanisms, along with consistent growth patterns, indicate a robust business model. The strategic focus on cloud solutions, combined with the diverse client portfolio, allows Newgen Software Technologies Limited to remain competitive in the fast-evolving technology landscape.
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