“We aspire to reach $500 million in the next 3-4 years. We’ve drawn the roadmap and are investing seriously. But yes, the market has to reward you, and the returns and timing have to be right. We hope this plan works for us,” said Virender Jeet, CEO, Newgen Software.

Jeet expects the company to maintain its historical growth rate of around 20% in FY25. “I don’t see the potential of the company as a problem, but our ability to execute can sometimes be a constraint. However, we are moving in the right direction,” he added.

As of FY24, ending in March, the New Delhi-headquartered firm, with around 4,400 employees, reported annual revenue of $148 million (Rs 12,438 crore), growing at a compound annual growth rate (CAGR) of 26%.

On Tuesday, Newgen reported a 23% year-on-year (YoY) revenue growth for the second quarter of FY25, ending in September, to Rs 361 crore, driven by license sales predominantly in the Asia Pacific (APAC), Europe, Middle East and Africa (EMEA), and India regions.

Its net profit jumped 47% YoY to Rs 70 crore, up from Rs 47.8 crore in the same quarter last year. The bottomline was bolstered by strong growth in the financial services segment, license sales, and a significant rise in margins.

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Margins improved sharply by 350 basis points (3.50%) during the quarter to 23%, up from 19.5% a year ago and 15.1% in the June quarter, driven primarily by a higher proportion of high-margin product license revenue.The company is also focusing on scaling up its health insurance and government segments, which together account for 20% of revenue. Banking and financial services contribute 72% of total business.

License revenue grew by 52% YoY, driven by robust deal closures. Newgen’s deal sizes range between $700,000 and $2 billion.

In Q2 FY25, Newgen added eight new clients, slightly below expectations of 12, with wins across India, APAC, and one each from Australia and Europe.

“India and the Middle East have grown well at 19%, and EMEA at 21%. APAC (excluding India) grew by 53%, though from a small base. It’s a strong market, representing 15% of our business, with continued momentum, especially in Singapore and the Philippines,” Jeet said.

India and EMEA currently account for 30% and 33% of revenue, respectively. The US market, with a 22% share, grew by 17%.

“We plan to increase our contribution from the mature markets of the US and Europe, which represent about 70% of our addressable market. That’s where we are investing. As we grow, our revenue should increasingly come from these regions,” Jeet said.

In the short term, India, the Middle East, and APAC will continue to be strong, but in the long term, the company aims for the US and Europe to drive growth.

Jeet expects the US and European markets to expand once the demand cycle picks up.

“We aspire to reach $500 million in the next 3-4 years. We’ve drawn the roadmap and are investing seriously. But yes, the market has to reward you, and the returns and timing have to be right. We hope this plan works for us,” said Virender Jeet, CEO, Newgen Software.

Jeet expects the company to maintain its historical growth rate of around 20% in FY25. “I don’t see the potential of the company as a problem, but our ability to execute can sometimes be a constraint. However, we are moving in the right direction,” he added.

As of FY24, ending in March, the New Delhi-headquartered firm, with around 4,400 employees, reported annual revenue of $148 million (Rs 12,438 crore), growing at a compound annual growth rate (CAGR) of 26%.

On Tuesday, Newgen reported a 23% year-on-year (YoY) revenue growth for the second quarter of FY25, ending in September, to Rs 361 crore, driven by license sales predominantly in the Asia Pacific (APAC), Europe, Middle East and Africa (EMEA), and India regions.

Its net profit jumped 47% YoY to Rs 70 crore, up from Rs 47.8 crore in the same quarter last year. The bottomline was bolstered by strong growth in the financial services segment, license sales, and a significant rise in margins.

Discover the stories of your interest

Margins improved sharply by 350 basis points (3.50%) during the quarter to 23%, up from 19.5% a year ago and 15.1% in the June quarter, driven primarily by a higher proportion of high-margin product license revenue.The company is also focusing on scaling up its health insurance and government segments, which together account for 20% of revenue. Banking and financial services contribute 72% of total business.

License revenue grew by 52% YoY, driven by robust deal closures. Newgen’s deal sizes range between $700,000 and $2 billion.

In Q2 FY25, Newgen added eight new clients, slightly below expectations of 12, with wins across India, APAC, and one each from Australia and Europe.

“India and the Middle East have grown well at 19%, and EMEA at 21%. APAC (excluding India) grew by 53%, though from a small base. It’s a strong market, representing 15% of our business, with continued momentum, especially in Singapore and the Philippines,” Jeet said.

India and EMEA currently account for 30% and 33% of revenue, respectively. The US market, with a 22% share, grew by 17%.

“We plan to increase our contribution from the mature markets of the US and Europe, which represent about 70% of our addressable market. That’s where we are investing. As we grow, our revenue should increasingly come from these regions,” Jeet said.

In the short term, India, the Middle East, and APAC will continue to be strong, but in the long term, the company aims for the US and Europe to drive growth.

Jeet expects the US and European markets to expand once the demand cycle picks up.