{"id":128927,"date":"2022-05-05T10:20:33","date_gmt":"2022-05-05T14:20:33","guid":{"rendered":"https:\/\/44.250.171.167\/?p=128927"},"modified":"2022-10-06T03:27:50","modified_gmt":"2022-10-06T07:27:50","slug":"newgen-software-technologies-limited-q4-fy22-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/newgen-software-technologies-limited-q4-fy22-earnings-conference-call-insights\/","title":{"rendered":"Newgen Software Technologies Limited Q4 FY22 Earnings Conference Call Insights"},"content":{"rendered":"<p><iframe loading=\"lazy\" title=\"Newgen Software Technologies Limited Q4 FY22 Earnings Concall\" width=\"500\" height=\"375\" src=\"https:\/\/www.youtube.com\/embed\/KGCQVEOvYGQ?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p><strong>Key highlights from Newgen Software Technologies Limited (<a href=\"https:\/\/44.250.171.167\/symbol\/NEWGEN\/\">NEWGEN<\/a>) Q4 FY22 Earnings Concall<\/strong><\/p>\n<p><strong>Management Update:<\/strong><\/p>\n<ul>\n<li>NEWGEN said that of the 530-odd customers, 38 customers witnessed billing of over INR5 crores in FY22 compared to 26 customers in FY21.<\/li>\n<\/ul>\n<p><strong>Q&amp;A Highlights:<\/strong><\/p>\n<ul>\n<li>Sarang Sanil from RW Investment asked about the GSI percentage of revenue on the GSI side. Diwakar Nigam MD said it was not GSI as it was a recent initiative. The percentage of revenue from partners was about 17-18% previous year. This year, it\u2019s roughly around 23%, which has shown growth.<\/li>\n<\/ul>\n<ul>\n<li>Sarang Sanil from RW Investment also asked how is the GSI environment looking like in the coming year. Diwakar Nigam MD said the GSI cycles of closure are much longer now, so the revenue accumulation will happen in coming quarters and years. It\u2019s growing, but NEWGEN is far from 50% but it\u2019s moving in the positive direction.<\/li>\n<\/ul>\n<ul>\n<li>Sarang Sanil from RW Investment asked about the deal wins in GSI for FY22. Diwakar Nigam MD replied that the GIS wins in FY22 has spread across territories. Last year, it was localized more towards US. This year some deals were in Australia, APAC, Europe and US. So it was better than last year.<\/li>\n<\/ul>\n<ul>\n<li>Sarang Sanil from RW Investment asked about employee cost climbing to 53% from 49% last year as a percentage of revenue. Diwakar Nigam MD clarified that the way demand is accelerating there is pressure on the cost on the employee front. NEWGEN expects the employee cost to go up further in FY23 by few more percentages.<\/li>\n<\/ul>\n<ul>\n<li>Mihir Manohar from Carnelian Asset Management asked about the size of GSI cases and the size of enquiries. Diwakar Nigam MD answered that unless those cases come to very close in the later stage of the funnel, NEWGEN don&#8217;t determine the exact size. The expectation is to have a potential to build from $500,000 of annuity to a kind of $1 million annuity over a period of time.<\/li>\n<\/ul>\n<ul>\n<li>Sanjay Awatramani of Envision Capital asked about the guidance on FY23 revenue and EBITDA margins. Diwakar Nigam MD clarified that NEWGEN doesn\u2019t provide any guidance as it\u2019s still a small business. The company is expecting to keep its net margins above 18% and EBITDA margins above 23%.<\/li>\n<\/ul>\n<ul>\n<li>Sanjay Awatramani of Envision Capital also asked about the attrition level faced for FY22 and 4Q22. Diwakar Nigam MD replied that for FY22 attrition level was to the extent never seen in its history, touching close to 40%. NEWGEN expects that in 3Q, 4Q of FY23 it should normalize.<\/li>\n<\/ul>\n<ul>\n<li>Ankush Agarwal from Surge Capital enquired about the medium term outlook of EBITDA margin and net margin. Diwakar Nigam MD said that with NEWGEN\u2019s growth targets meeting, it should be between 18-19% of PAT margins and around 23% of EBITDA margins for the near term.<\/li>\n<\/ul>\n<ul>\n<li>Dipen Sheth from Buoyant Capital asked about the reason for significant rise in intangible asset in FY22 to INR16 crore. Diwakar Nigam MD answered that it represents the Number Theory acquisition. And Arun Gupta CFO added that as per the valuation by the independent valuer, product valuation is intangible as well as goodwill of around INR2.5 crores and INR16 crores is product valuation.<\/li>\n<\/ul>\n<ul>\n<li>Dipen Sheth from Buoyant Capital also asked if NEWGEN will be taking write-offs against this acquisition over a period of time. Diwakar Nigam MD replied that it will be amortized in the next five years.<\/li>\n<\/ul>\n<ul>\n<li>Saurabh Sadhwani of Sahasrar Capital enquired about the contributors for rise in other expenses. Diwakar Nigam MD replied that it has increased due to some amount of investments in sales and marketing towards the later part of last year. And also some amount of office expenses and travel expense going up slightly.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from Newgen Software Technologies Limited (NEWGEN) Q4 FY22 Earnings Concall Management Update: NEWGEN said that of the 530-odd customers, 38 customers witnessed billing of over INR5 crores in FY22 compared to 26 customers in FY21. Q&amp;A Highlights: Sarang Sanil from RW Investment asked about the GSI percentage of revenue on the GSI side. [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":125416,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,8],"tags":[8532],"class_list":["post-128927","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-technology-stocks","tag-technology"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":138726,"url":"https:\/\/alphastreet.com\/india\/newgen-software-technologies-limited-q3-fy23-earnings-conference-call-insights\/","url_meta":{"origin":128927,"position":0},"title":"Newgen Software Technologies Limited Q3 FY23 Earnings Conference Call Insights","author":"Praveen","date":"January 18, 2023","format":false,"excerpt":"Key highlights from Newgen Software Technologies Limited (NEWGEN) Q3 FY23 Earnings Concall Management Update: [00:03:37] NEWGEN said it is seeing increased adoption of subscription based business model, with the company\u2019s overall subscription revenue growing 37% YoY. [00:09:44] The company said that FY23 is marked by the continuing impact of elevated\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":126436,"url":"https:\/\/alphastreet.com\/india\/newgen-software-technologies-limited-q3-fy22-earnings-conference-call-summary\/","url_meta":{"origin":128927,"position":1},"title":"Newgen Software Technologies Limited Q3 FY22 Earnings Conference Call Summary","author":"Praveen","date":"January 19, 2022","format":false,"excerpt":"https:\/\/www.youtube.com\/watch?v=lMWFAFWJzS0 Key highlights from Newgen Software Technologies Limited (NEWGEN) Q3 FY22 Earnings Concall Management Update: NEWGEN commented that it saw acceleration in business from existing customers and healthy operating margins. The company\u2019s subscription revenue continues to be the strongest component, seeing 20% growth YoY. Q&A Highlights: Analyst Dipesh Mehta asked\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":144833,"url":"https:\/\/alphastreet.com\/india\/newgen-software-technologies-limited-q4-fy23-earnings-conference-call-insights\/","url_meta":{"origin":128927,"position":2},"title":"Newgen Software Technologies Limited Q4 FY23 Earnings Conference Call Insights","author":"Praveen","date":"May 3, 2023","format":false,"excerpt":"Key highlights from Newgen Software Technologies Limited (NEWGEN) Q4 FY23 Earnings Concall Management Update: [00:02:14] NEWGEN said it crossed the total income milestone of INR1,000 crore in FY23. Q&A Highlights: [00:12:13] Baidik Sarkar from Unifi Capital asked how does the systemic banking crisis in the U.S. affect the company\u2019s pipeline\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":131560,"url":"https:\/\/alphastreet.com\/india\/newgen-software-technologies-limited-q1-fy23-earnings-conference-call-insights\/","url_meta":{"origin":128927,"position":3},"title":"Newgen Software Technologies Limited Q1 FY23 Earnings Conference Call Insights","author":"Praveen","date":"July 22, 2022","format":false,"excerpt":"https:\/\/youtu.be\/le4H1ngVL68 Key highlights from Newgen Software Technologies Limited (NEWGEN) Q1 FY23 Earnings Concall Management Update: NEWGEN said it is increasingly seeing growth in cloud subscription business which grew by 33%. Cloud and subscription revenue put together have now reached 38% of total revenue. This shift, the company said, is expected\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":160721,"url":"https:\/\/alphastreet.com\/india\/newgen-software-technologies-limited-q4-fy24-earnings-conference-call-insights\/","url_meta":{"origin":128927,"position":4},"title":"Newgen Software Technologies Limited Q4 FY24 Earnings Conference Call Insights","author":"Praveen","date":"May 1, 2024","format":false,"excerpt":"Key highlights from Newgen Software Technologies Limited (NEWGEN) Q4 FY24 Earnings Concall Revenue Growth Revenue increased by 28% year-over-year to INR 1,244 crores. Witnessed strong growth in EMEA, 39% and India, 33% markets. Secured largest project worth INR 97 crores in APAC region. Increased number of customers with billing over\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":157776,"url":"https:\/\/alphastreet.com\/india\/newgen-software-technologies-limited-q3-fy24-earnings-conference-call-insights\/","url_meta":{"origin":128927,"position":5},"title":"Newgen Software Technologies Limited Q3 FY24 Earnings Conference Call Insights","author":"Praveen","date":"January 17, 2024","format":false,"excerpt":"Key highlights from Newgen Software Technologies Limited (NEWGEN) Q3 FY24 Earnings Concall Financial Performance Revenue at INR 324 crores, up 27% year-over-year. Profit after tax at INR 68 crores, up 45%. Healthy growth across geographies like India, EMEA, APAC, Americas. Annuity revenues comprise 59% of total at INR 191 crores.\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/128927","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/1767"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=128927"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/128927\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/125416"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=128927"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=128927"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=128927"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}