Newgen Software bags £1.5 million contract from the UK; Stock recovers from lows

Shares of Newgen Software Ltd. recovered from the lows of the day on Tuesday, November 18, after the company announced the award of a new contract.Newgen Software’s wholly-owned subsidiary, Newgen Software Technologies (UK) Ltd. has executed a master services agreement with a customer for Newgen Software licenses, AWS managed cloud services and implementation services. The name of the customer is not disclosed for confidentiality reasons.

As per the order, Newgen will offer its Contract Management platform across the Enterprise, helping users create and manage policy documents. The three-year contract is valued at £1.5 million, according to the exchange filing.

Newgen Software reported revenue growth of 25% on a sequential basis during the September quarter, while its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter doubled from the June quarter.EBITDA margin expanded to 25.5% from just 14% in the previous quarter. For the first half of the current financial year, Newgen Software’s revenue grew by 6.7%, while its net profit grew by 11.7%.

Shares of Newgen Software recovered from the lows of the day and briefly turned positive after the contract announcement as well. The stock is now trading 0.2% lower at ₹921.85.