Shares of Newgen Software Technologies, a small-cap IT firm, saw a strong rally of over 13% in intraday trade following the release of its Q4 financial results. The company reported a 14% increase in revenue on a year-over-year basis and declared a final dividend of ₹5 per share, boosting investor sentiment.
Strong Q4 Performance
In the fourth quarter, Newgen posted a net profit of ₹108.3 crore, a 3% rise compared to ₹105.2 crore in the same quarter last year. On a sequential basis, the profit jumped by 21% from ₹88.8 crore in Q3. Revenue from operations came in at ₹429.8 crore, up from ₹375.2 crore a year earlier and ₹381.1 crore in the previous quarter.
Key Numbers:
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Net Profit: ₹108.3 crore (3% YoY, 21% QoQ)
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Revenue: ₹429.8 crore (14% YoY, 14.5% QoQ)
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Final Dividend: ₹5 per share
Dividend Payout Reflects Confidence
The board has recommended a final dividend of ₹5 per share on a face value of ₹10. The record date will be fixed after the company’s Annual General Meeting scheduled for July 18, 2025. This step indicates the company’s intent to reward shareholders and its confidence in future prospects.
Revenue Sources Across Regions
Newgen has a diverse client base across global markets. In Q4, its revenue distribution looked like this:
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India: ₹133.6 crore
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EMEA (Europe, Middle East & Africa): ₹138.5 crore
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Asia Pacific: ₹69.2 crore
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United States: ₹88.4 crore
This mix highlights Newgen’s strength in balancing its exposure between developed and developing markets, reducing regional risks.
Market Landscape and Challenges
Despite the strong quarterly performance, Newgen’s stock is still down more than 38% for the year. This reflects wider industry pressures such as fears of a U.S. recession, economic slowdown, and trade tensions. Even so, Newgen’s latest results show that it’s navigating these challenges effectively.
What Sets Newgen Apart
The company focuses on digital transformation solutions and enterprise software, giving it an edge in the small-cap IT segment. Its consistent growth in revenue and profit, along with steady dividends, makes it appealing for investors looking for both growth and stability in the IT space.
Final Thoughts
Newgen Software’s Q4 results affirm its operational strength, with solid revenue and profit growth and a shareholder-friendly dividend policy. Despite market volatility, the company’s diversified reach and commitment to innovation provide a strong case for its long-term potential in the IT sector.
