IT firm Newgen Software Technologies Ltd announced on Tuesday (March 3) that its US-based material subsidiary, Newgen Software Inc (NSI), has signed a Master Service Agreement with an insurance company in the Caribbean. According to reports from CNBC TV18, the total value of the contract is $1,495,000, equivalent to ₹13.77 crore. The agreement covers the supply, installation, and implementation of the NewgenONE Digital Transformation Platform, with a three-year execution timeframe for licensing, implementation, annual maintenance, and support services.
The customer is an international entity based in the Caribbean, with the company confirming that neither the promoters nor the promoter group or group companies have any interest in the counterparty. As reported by CNBC TV18, this transaction is not classified as a related-party transaction under the Companies Act, 2013. However, shares of Newgen Software Technologies Ltd ended at ₹488.10, down by ₹21.05, or 4.13%, on the BSE following the announcement.
The company's net profit during the quarter fell by 23.2% to ₹63 crore from ₹82 crore last quarter, according to CNBC TV18. The company stated that there was a one-time impact of the new labour code worth ₹35 crore, which impacted its profitability. Adjusted for that impact, the bottomline would have been higher on a sequential basis. Revenue for the quarter remained unchanged at ₹400 crore from ₹401 crore in the July-September quarter.
According to CNBC TV18, EBIT grew by 3.1% to ₹97 crore from ₹94.4 crore last quarter, while EBITDA margins expanded by 70 basis points from the previous quarter to 24.2% from 23.5%. The company's India business declined to ₹115.4 crore from ₹117.8 crore, while the EMEA business topline remained flat at ₹123.6 crore. APAC revenue saw a small increase to ₹65.32 crore from ₹63.45 crore, and the US business revenue increased to ₹96 crore from ₹95 crore in the September quarter.
