homeearnings NewsMargin improved in FY21 due to lower travel cost, reduced infra cost: Newgen Software
Margin improved in FY21 due to lower travel cost, reduced infra cost: Newgen Software
Newgen Software Technologies posted a mixed set of Q4 earnings. Profits are higher despite lower margins. This is on account of a higher other income and lower taxes this time around.
Newgen Software Technologies posted a mixed set of Q4 earnings. Profits are higher despite lower margins. This is on account of a higher other income and lower taxes this time around.
On revenues, Diwakar Nigam, CMD of the company told CNBC-TV18, “We are transitioning from a license phased revenue to subscription-based revenue. So our subscriptions are kind of back-ended and they come year-after-year for the next 5-7 years. This we have 57 percent of annuity income that is the reason why even in COVID times we have been able to do well. Our revenues are becoming better and our US revenues are going up.”
He added, “COVID has affected us in India and EMEA (Europe, Middle East, Africa) region, it is growing much better - as you know COVID is clearing from the matured economies so that is where we are concentrating and that is where we see our major growth to come.”
On revenue guidance, Nigam said, “15 percent is a slam-dunk, we should be able to do it easily. This is primarily because we have annuity revenues which are growing, we have further new orders which are in pipeline. We have done 76 logos this year and out of them most of them are subscriptions. That means they will affect my revenues next year.”
On margins, he said, “This year the margins have come primarily from two things one- lower travel cost and second some amount of infrastructure cost going down. In the future also this will continue because we have been propagating the idea of ‘Working from Anywhere’ and we have been doing it for 25 years.”
Watch the video for full management commentary
(Edited by : Ajay Vaishnav)
First Published: May 26, 2021 12:00 PM IST
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