Newgen Software: 15% growth doable, Co prepared for it, says CMD Diwakar Nigam

Newgen Technologies hopes to see double-digit growth in FY22, said Diwakar Nigam, CMD of the company on Thursday. His comments have come after Newgen recently reported its third-quarter results.

“We are looking at a very exciting year to come by in the next three months. We are planning very aggressively and we will like to get to double-digit growth in the coming year,” he told CNBC-TV18.

He said that a growth of 15-20 percent is achievable and the company is prepared for it. He believes that margins could go down slightly, but he expects it to sustain around 20 percent.

Nigam said that the annuity business is growing well at 27 percent year-on-year (YoY).

“In our business, there is a huge margin available because the annuity part of the business is pretty high. It is growing 27 percent YoY. So, I think the annuity part goes up because we have existing customers where lakhs of users are using our product and using it very effectively, especially in this COVID time because they can operate it from anywhere,” he said.