Shares of Newgen Software Ltd. fell as much as 6% on Thursday, July 17, in response to its June quarter results, that were reported during market hours.The company’s operating performance was weak on a year-on-year basis. Its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) declined by 6% from last year to ₹45 crore, while its margins also narrowed to 14% from 15% last year.
Higher employee benefit expenses and finance costs weighed on the company’s operating performance during the quarter.
Employee benefit expenses during the quarter increased to ₹181.5 crore from ₹174 crore last year.
Revenue for the quarter increased by 2% on a year-on-year basis to ₹321 crore, while net profit saw a 4% growth from the year-ago period to ₹50 crore from ₹48 crore.Within Newgen’s key geographies, the India business revenue increased marginally on a year-on-year basis but saw a substantial decline in comparison to the March quarter.
Higher employee benefit expenses and finance costs weighed on the company’s operating performance during the quarter.
Employee benefit expenses during the quarter increased to ₹181.5 crore from ₹174 crore last year.
Revenue for the quarter increased by 2% on a year-on-year basis to ₹321 crore, while net profit saw a 4% growth from the year-ago period to ₹50 crore from ₹48 crore.Within Newgen’s key geographies, the India business revenue increased marginally on a year-on-year basis but saw a substantial decline in comparison to the March quarter.
European business revenue also declined to ₹103.4 crore from ₹138.56 crore in the previous quarter.
APAC revenue declined to ₹49.9 crore from ₹69.2 crore last quarter and remained flat on a year-on-year basis.
US business revenue also remained flat from last year but declined when compared to the March quarter.
Shares of Newgen Software Technologies are trading 5.4% lower after the earnings announcement to ₹1,032. The stock has declined 40% so far in 2025.
First Published: Jul 17, 2025 1:12 PM IS
