The shares of this IT stock, specializing in software product development jumped over 7 percent on Thursday after signing a $1.3 million international contract.
Stock Performance
With a market capitalization of Rs 14,304.85 crore, Newgen Software Technologies Ltd (NSE:NEWG) rose over 7 percent in Thursday’s trading session and made an intraday high of Rs 1038 per share compared to its previous closing price of Rs 969.80 per share. The shares reiterated from the day’s high and were trading at Rs 1011.10 which is 4 percent higher than the previous close.
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What Happened
Through an exchange filing, Newgen Software Technologies announced the acceptance of a contract from an international client for providing Enterprise Content Management Solution (ECM). The deal is valued at $1.3 million and is to be executed over a period of 5 years.
Company overview
Newgen Software Technologies Limited automates end-to-end processes, efficiently manages content and communications, and leverages AI-driven cognitive capabilities, governance, and integration. It also offers NewgenONE, a unified digital transformation platform. Along with a pan-India presence, the company has clients across Europe, the Middle East, and Africa (EMEA); Asia Pacific and Australia (APAC); and the United States (USA).
Financial Performance
When looking at the financial performance of Newgen Software Technologies, the company reported an 18 percent growth in revenue from Rs 324 crore in Q3 FY24 to Rs 381 crore in Q3 FY25. This was accompanied by a 31 percent increase in net profits from Rs 68 crore to Rs 89 crore during the same period.
FII Holdings
It is interesting to note that the company has been consistently seeing an accelerated growth in FII interest over the years. The foreign holdings which were 15.22 percent in Q3 FY24 has now increased to 20.31 percent in Q3 FY25, marking a 33 percent year-on-year rise.
Written by Shwetha Sairam
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