Skip to main content

AI assistant

Sign in to chat with this filing

The assistant answers questions, extracts KPIs, and summarises risk factors directly from the filing text.

Newgen Software Technologies Limited Investor Presentation 2020

Jul 22, 2020

61831_rns_2020-07-22_ab5468d3-86bf-456a-ad5e-9fabcfd6fd38.pdf

Investor Presentation

Open in viewer

Opens in your device viewer

==> picture [96 x 50] intentionally omitted <==

Newgen Software Technologies Limited

CIN: L72200DL1992PLC049074

A-6, Satsang Vihar Marg, Qutab Institutional Area, New Delhi - 110 067, INDIA Email: [email protected] URL: https://newgensoft.com Tel.: (+91)-11-4077 0100, (+91)-11-2696 3571, 2696 4733, Fax: (+91)-11-2685 6936

Date: 22[nd] July 2020

To,
BSE Limited
Phiroze Jeejeebhoy Towers,
Dalal Street,
Mumbai – 400001
To,
National Stock Exchange of India Limited
Exchange Plaza, Plot No. C/1, G Block,
Bandra- Kurla Complex
Bandra (E), Mumbai – 400051
Ref.: Newgen Software Technologies Limited
(NEWGEN/INE619B01017)
ScripCode - 540900
Ref.: Newgen Software Technologies Limited
(NEWGEN/INE619B01017)

Sub.: Investor Presentation and Press Release on Financial Results for the first quarter ended 30[th] June 2020.

Dear Sir/ Ma'am,

Pursuant to the above mentioned subject, we are hereby enclosing the following:

1) Investor Presentation; and

2) Press Release on Financial Results.

This is for your kind information and record.

Thanking you.

==> picture [264 x 102] intentionally omitted <==

Encl. : a/a

July 2020

==> picture [111 x 68] intentionally omitted <==

Newgen Software Technologies Ltd.

Q1 FY’21 Investor Update

==> picture [479 x 37] intentionally omitted <==

Connecting Enterprises. Transforming Experiences.

COPYRIGHT 2020, NEWGEN SOFTWARE

Reinvent business with Newgen’s transformative platforms

Low-code software products company providing enterprise-wide, mission critical solutions helping organisations drive digital transformation and competitive differentiation

Digitise

Process & Adapt

Communicate

==> picture [283 x 109] intentionally omitted <==

Deliver contextual content for smarter Deliver contextual content for smarter decision making and improved decision making and improved collaboration collaboration

==> picture [282 x 109] intentionally omitted <==

Create smarter processes, empower knowledge workers and build responsive business

==> picture [280 x 108] intentionally omitted <==

Create, personalize and deliver interactive communication to enhance customer experience

2

COPYRIGHT 2020, NEWGEN SOFTWARE

Newgen at a Glance (FY’20)

==> picture [85 x 86] intentionally omitted <==

==> picture [77 x 77] intentionally omitted <==

~560 Active 69 Customers[(1)] Countries

==> picture [77 x 77] intentionally omitted <==

==> picture [76 x 77] intentionally omitted <==

Strong Industry 44 Patent Recognition Filings

==> picture [76 x 77] intentionally omitted <==

==> picture [76 x 77] intentionally omitted <==

56% Annuity Revenues

Rs 6,608 Mn FY’20 Revenues

COPYRIGHT 2020, NEWGEN SOFTWARE

(1) Invoiced in the last 12 months

(2) All figures as of March 2020

Toronto, CA New Delhi, IN New Mississaug Delhi London London, UK s a, ON Mu Kolk mbai

Tampa, FL

Dub Dubai, AE ai

New South Wales, AU Singapore, SG

McLean, VA

==> picture [51 x 51] intentionally omitted <==

Global Offices HQ

==> picture [72 x 45] intentionally omitted <==

3

India Offices include Mumbai, Chennai, Bengaluru, Kolkata, Hyderabad, Noida, Gurugram, New Delhi

Newgen’s Transformative Platform

==> picture [748 x 46] intentionally omitted <==

==> picture [72 x 45] intentionally omitted <==

Resilient Business Model in place (FY’20)

==> picture [840 x 360] intentionally omitted <==

----- Start of picture text -----

56% 18% 26%
Large annuity revenues streams Annuity Revenues Sale of Products Sale of Services
FY20 Revenue Split by Segment
57% 9% 8% 8% 6% 12%
Mission critical solutions across key verticals Banking & FS Health BPO Govt. Insurance Others
FY20 Revenue Split by Segment
30% 31% 28% 11%
Diversification across geographies India EMEA USA APAC
FY20 Revenue Split by Geography
----- End of picture text -----

==> picture [72 x 45] intentionally omitted <==

Strong Industry Recognition

Gartner

==> picture [232 x 36] intentionally omitted <==

A Challenger in Magic Quadrant for Content Services Platform, ECM 30 October 2019, Michael Woodbridge et al

“A Strong Performer” in ECM Content Platforms Wave™ Report, Q3 2019

A Niche Player in Magic Quadrant for Intelligent Business Process Management Suites, 30 January 2019, Rob Dunie et al

“Strong Performer” in the Forrester Wave[TM] : Digital Process Automation For Wide Deployments, Q1 2019

BPM

A Challenger in Magic Quadrant for BPM-Platform-Based Case Management Frameworks,, 24 October 2016, Rob Dunie, Janelle B. Hill*

“Leader” in the Forrester Wave[TM] : Cloud-Based Dynamic Case Management (DCM), Q1 2018

A Niche Player in Magic Quadrant for CCM Customer Communications Management Software, 26 January 2017, Karen M. Shegda, Pete Basiliere*

“Strong Performer” in the Forrester Wave[TM] : Customer Communications Management, Q2 2016

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. •This research is provided for historical perspective; portions may not reflect current conditions.

• The Forrester Wave™ is copyrighted by Forrester Research, Inc. Forrester and Forrester Wave™ are trademarks of Forrester Research, Inc. The Forrester Wave™ is a graphical representation of Forrester’s call on a market and is plotted using a detailed spreadsheet with exposed scores, weightings, and comments. Forrester does not endorse any vendor, product, or service depicted in the Forrester Wave. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change.

Focused on Driving Innovation Through R&D

Our complete development network and supporting infrastructure operates on a central system and follows a synchronized cloud-based continuity strategy

28 years of product DNA

Skilled R&D team with deep product domain expertise

Unified platform with modular deployment

Intuitive applications and scalable performance

Low Code Platform

SaaS delivery

COPYRIGHT 2020, NEWGEN SOFTWARE

==> picture [241 x 188] intentionally omitted <==

----- Start of picture text -----

44 patents filings,
15 Granted [(1) ]
----- End of picture text -----

==> picture [242 x 183] intentionally omitted <==

New Features Intelligent Content Services Low-Code Application Dev Platform

Collaborative Work Management Digital Sensing

BlockChain

==> picture [199 x 50] intentionally omitted <==

----- Start of picture text -----

RPA
----- End of picture text -----

==> picture [72 x 45] intentionally omitted <==

7

(1) 44 Patent Filings, of which 15 patents are granted in India & the USA and 16 patent applications are under processing

Transforming project delivery and sales and marketing methods

==> picture [51 x 124] intentionally omitted <==

Cloud Deployments ensuring remote implementations

Low Code Platforms ensures reduction in delivery timelines

==> picture [51 x 54] intentionally omitted <==

Leveraging digital connectivity while ensuring data security to successfully execute each stage of project deployments and sales demos and discussions

==> picture [53 x 121] intentionally omitted <==

Local teams across mature markets

Focus on strengthening the SI partner ecosystem globally

==> picture [72 x 45] intentionally omitted <==

COPYRIGHT 2020, NEWGEN SOFTWARE

8

Experienced Senior Management Team with Distinct Operating Culture

Management Organisation Structure

Founder-led

management team with extensive

experience

Diwakar Nigam

T.S. Varadarajan

Chairman and Managing Director

Whole Time Director

  • Co-founded Newgen in 1992

  • Co-founded Newgen in 1992

  • 35+ years of experience in development of software products

  • 35+ years of experience in development of software products

  • Masters in Computer Science from IIT Madras

  • Masters in Computer Science from IIT Madras

Business Mgmt/Delivery

Technology/ Products

Sales & Marketing

==> picture [59 x 63] intentionally omitted <==

Priyadarshini Nigam

Whole Time Director

  • Been with Newgen since 1997

  • More than 10 years of experience in the field of journalism

Corporate

Virender Jeet

Hemant Makhija

Tarun Nandwani

Dr. S.J. Raj

Sr. VP –Sales & Marketing/ Product

VP – Marketing

Sr. VP – Business Management

  • VP – Marketing

  • Supported by a • Been with Newgen since 1992 • 30 years of extensive strong second line • Manages overall strategic and experience with organizations operational responsibility for 35 like Plex Systems, Yahoo, Sage,

  • management entire portfolio of offerings and Systronics

Sr. VP – HRD

  • Been with Newgen since 1993

  • • Responsible for driving business from existing customers and CRM

  • Been with Newgen since 1992

  • Experience of 31 years

Arun Kumar Gupta Chief Financial Officer

Ashok Kapoor

Manojit Majumdar

 Fostered culture of

VP – Software Development

VP – Channels

  - Been with Newgen since 2010
  • Been with Newgen since 2015

  • • Experience of 26 years

  • With Newgen since 1998

  • • Managed mid-market channels at IBM India

innovation,

  • Oversees financial reporting & planning, treasury, taxation, IR and compliances

entrepreneurship

  • Rejoined Newgen in 2011

and teamwork

Dushyant Kumar

Vivek Bhatnagar

VP – Software Development

VP – Sales

  • VP – Sales • Been with Newgen since 1999 • With Newgen since 2011 • Driving organization wide • scaling of competence of Experience of 20 years US Sales Delivery and all customer facing groups Anand Raman

  • Sunil Pandita Shanmugam Nagappan VP – Sales • 22 years of extensive experience with organisations VP – Software Development • Responsible for managing EVP & COO - Newgen Software Inc. • Been with Newgen since 1994 like Samsung Electronics, delivery functions on projects • Deep experience in product Adobe, IBM, Autodesk and HCL executed from SDC, Chennai development life-cycle

10 out of 20 AVP

Australia Sales

have been with the company for 15+

R. Krishna Kumar

VP – Sales

  • years • Been with Newgen since 2013

  • Experience of 21 years

Independent Board of Directors

Subramaniam Ramnath Iyer Non Executive, Independent Director 26+ years of experience in Finance & Accounting

Kaushik Dutta

Non Executive, Independent Director 22+ years of experience in Finance & Accounting

Saurabh Srivastava

Non Executive, Independent Director Several years of experience in Information technology

Padmaja Krishnan Non Executive, Independent Director 30+ years of experience in Technology space

5 Year Financial Overview

Total Revenue (INRm)

PAT (INRm) and PAT Margins

==> picture [898 x 382] intentionally omitted <==

----- Start of picture text -----

Profit impacted due to
7000 Growth impacted due to business
6,608 1,200 business deferments (Covid19)
deferments (Covid19)
6,206
6000 6% 1,022
1,000
5,124
5000 4,699
4,271 4,167 800 729 727
4000 13%
3,468
600
3000 513
400
2000
278
1000 200
0
FY16 FY17 FY18 9M FY19 9M FY'20 -
FY’19 FY’20 FY16 FY17 FY'18 FY'19 FY'20
----- End of picture text -----

==> picture [72 x 45] intentionally omitted <==

FY’16 financials are Restated Consolidated Financials as per Indian GAAP Accounting Standards COPYRIGHT 2016, NEWGEN SOFTWARE INC. FY’17-20 financials are Consolidated Financials as per Ind AS Accounting Standards

10

==> picture [161 x 163] intentionally omitted <==

Q1 FY’21 Results

==> picture [72 x 45] intentionally omitted <==

11

Financial Summary (Consolidated)

ParticularsMetrics
Q1FY21
(Unaudited)
Q1FY20
(Unaudited)
YoY
**Growth **
ParticularsMetrics
Q1FY21
(Unaudited)
Q1FY20
(Unaudited)
YoY
**Growth **
Q4FY20
(Unaudited)
QoQ
Growth
Revenu
e (INR
Mn)
Revenue from operations 1,321
1,310
1%
1,908
-31%
Other Income
39
29
33%
92
-57%
Total Income
1,360
1,339
2%
2,000
-32%
Profit
s
(INR
Mn)
EBITDA (adjustedfor other income) 156
77
101%
519
-70%
Profit after tax
91
31
196%
415
-78%
Margin
(%)
EBITDA (adjusted for other
income)
11.8%
5.9%
27.2%
Profit after tax
6.7%
2.3%
20.7%
EPS
(INR)
Basic
1.32
0.45
193%
6.01
Diluted
1.31
0.44
195%
6.00

Q1 FY’21

  • Achieved revenues of Rs 1,321 Mn with growth in annuity revenue streams. Continuing business from existing long-term customers and acquisition of credible new logos

  • Substantial cost optimization efforts across all spheres of the organization leading to significant expansion of our margins even amidst this challenging market. Further optimization measures to continue in next quarters.

  • EBIDTA up by 101% at Rs 156 Mn compared to Rs 77 Mn in Q1 FY’20

  • Profit after tax up by 196% at Rs 91 Mn compared to Rs 31 Mn in Q1 FY’20

  • Basic EPC witnessed an increase of 193% YoY

==> picture [72 x 45] intentionally omitted <==

COPYRIGHT 2020, NEWGEN SOFTWARE

12

Credible and Large Customer Wins

22 New Logo Wins during Q1 FY’21

Major deals include:

  • 15 new logo wins in Americas region in Banking and Credit Union space

  • Mid-sized project for a global leader in energy transportation based in Qatar (EMEA Region)

  • Project for one of the largest and fastest growing insurance companies in Philippines, offering financial security to 1.3 million individuals through group and individual life insurance products (APAC region)

==> picture [72 x 45] intentionally omitted <==

COPYRIGHT 2020, NEWGEN SOFTWARE

13

Enhanced Visibility of Revenues

Growth momentum continues in Annuity Revenues Streams

==> picture [898 x 362] intentionally omitted <==

----- Start of picture text -----

Annuity Revenues (INRm) Cloud/SaaS Revenues (INRm)
880 120
871
109
860
11% 100
30%
YoY growth 84
840 YoY growth
80
820
60
800
784
40
780
20
760
740 -
Q1 FY'20 Q1 FY'21 Q1 FY'20 Q1 FY'21
----- End of picture text -----

COPYRIGHT 2020, NEWGEN SOFTWARE

14

Business Highlights

Making strong in-roads in the US market with new offerings : Newgen’s revenues from US region witnessed a growth of 36% YoY during the quarter, largely on the back of solution deployments under the Paycheck Protection Program (PPP). Leading banks and credit unions are now using Newgen for processing loan requests for PPP. Given Newgen’s unique positioning, these opportunities are expected to help in deeper penetration in the region thus supporting long term SaaS growth for the Company.

Banking & Financial Services and Insurance verticals continue to be the growth drivers during the quarter with growth of 12% and 29% respectively.

Effective remote enablement measures: The Company continues to fulfill all customer commitments through effective remote enablement measures including institutionalizing new business processes and ways of working and thus leading to better collaboration, efficient delivery and enhanced productivity despite lack of in-person interactions.

==> picture [72 x 45] intentionally omitted <==

15

COPYRIGHT 2020, NEWGEN SOFTWARE

Diversification continues across Verticals and Geographies

==> picture [956 x 396] intentionally omitted <==

----- Start of picture text -----

Q1 FY21 Revenue Split by
Q1 FY21 Revenue Split by Segment Q1 FY21 Revenue Split by Vertical
Geography
Implement APAC
ation & Sale of Others (Ex-India)
Scanning Products 15% 9% India
18%
16% 27%
Healthcare
7%
SaaS
8%
Insurance
Banking
8%
55%
USA
ATS/AMC
40%
28%
BPO/IT
8%
Govt/
EMEA
PSUs
24%
Support 7%
30%
----- End of picture text -----

COPYRIGHT 2020, NEWGEN SOFTWARE

16

Debtors Days

Debtor Days (Based on Gross Debtors)

==> picture [421 x 299] intentionally omitted <==

----- Start of picture text -----

(INRm)
157 days
134 days 2,842
2,374
June 30, 2019 June 30, 2020
Debtor Days Gross Trade Receivables (INR Mn)
----- End of picture text -----

Debtor Days (Based on Net Debtors)

==> picture [51 x 14] intentionally omitted <==

----- Start of picture text -----

(INRm)
----- End of picture text -----

==> picture [354 x 144] intentionally omitted <==

----- Start of picture text -----

122 days
112 days
2,211
1,979
June 30, 2019 June 30, 2020
Debtor Days Net Trade Receivables (INR Mn)
----- End of picture text -----

==> picture [72 x 45] intentionally omitted <==

COPYRIGHT 2020, NEWGEN SOFTWARE

17

==> picture [107 x 66] intentionally omitted <==

==> picture [41 x 39] intentionally omitted <==

Thank you

www.newgensoft.com

For any Investor Queries please contact: Deepti Mehra Chugh Head – Investor Relations Phone: +91 11- 46 533 200 Mail : [email protected]

Disclaimer

This presentation may contain certain forward looking statements concerning Newgen Software Technologies’ future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth and new business opportunities, competition (both domestic and international), economic growth in India and the target countries for business, ability to attract and retain highly skilled professionals, time and cost over runs on projects, our ability to manage our international operations, government policies, interest and other fiscal costs generally prevailing in the economy and general economic conditions affecting the industry. Past performance may not be indicative of future performance. The company does not undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the company.

==> picture [72 x 45] intentionally omitted <==

P&L Statement

(All amounts in INRm, except per share data and unless
otherwise stated)

Q1 FY 2021

Q1 FY 2020
Q4 FY 2020
Revenue
Revenue from operations 1,321.2
1,309.7
1,908.4

Other income
39.2
29.5
91.7
Total revenue 1,360.4
1,339.2

2,000.1
Expenses
Employee benefits 780.6 778.4 845.3

Finance costs
18.0 18.3 34.7
Depreciation and amortisation 57.8 48.2 52.9

Other expenses
384.8 453.9 543.7

Total expenses
**1,241.2 **
1,298.8
1,476.5
Profit before tax **119.1 **
40.4
523.6
Tax expenses
Current tax 64.4
10.4
112.4
Deferred tax (credit)/charge -36.4 -0.8 -3.5

Profit after tax for the year
**91.2 **
30.8
414.7
Other comprehensive income/(loss) for the year,
net of income tax
15.7
-1.2
8.7
Total comprehensive income for the year 106.9 29.7 423.4
Earnings per equity share (face value of Rs. 10
per share)
Basic earning per share 1.32
0.45
6.01

Diluted earning per share
1.31
0.44
6.00

==> picture [72 x 45] intentionally omitted <==

COPYRIGHT 2020, NEWGEN SOFTWARE

19

PRESS RELEASE

==> picture [70 x 58] intentionally omitted <==

Newgen Software Reports Revenues of Rs 132.1cr in Q1 FY’21, US Revenues up 36%

Focus on profitable and sustainable growth with growth in annuity business and profits

New Delhi, India – 22 July 2020

The management of Newgen Software Technologies Ltd. announced results for the Quarter ended 30 June 2020 at its Board Meeting held on 22 July 2020.

Speaking about the results, Mr. Diwakar Nigam, Chairman & Managing Director, Newgen
Software Technologies Ltd. said – “During the quarter, we achieved revenues of Rs 132
crores. We continued to get business from our existing long-term customers ensuring full
support to their mission-critical operations. We have also commissioned new solutions for
them to fully managed remotely. We made 22 new customer additions during the quarter.
Newgen has received a tremendous response, especially in the US region for our new
Paycheck Protection Program (PPP) and Forgiveness solutions.
With our continued focus on profitable growth, we have undertaken substantial efforts
towards optimisation of costs across all spheres of the organisation leading to a significant
expansion of our margins on a YoY basis even amidst this challenging market. We also
continue to strengthen our liquidity position.
Employee safety and customer service continue to be at the forefront of our post-COVID
strategy and we have adopted effective practices and solutions to ensure a safe and
efficient remote working environment. We are successfully fulfilling our commitments
through these measures and practices while ensuring data security.
We will continue our focus on taking measures for building resilience within the
organization, investing for long-term goals, and growing our recurring revenues, profits, and
cash flows as the demand and adoption for digital solutions accelerates.”
Key Consolidated Financial Highlights (Q1 FY’21)– [Y-o-Y Comparison]

Revenue from operations (Consolidated) at Rs 132.1 croresas compared to Rs 131.0
crores in Q1 FY’20.
o Annuity Revenue streams (ATS/AMC, Support, and Cloud/SaaS) witnessed a
growth of 11% YoY and reached Rs 87.1 crores providing improved visibility of
the business.
o Revenue from Sale of Products/ License were at Rs 20.8 crores
o Implementation & Digitization revenues were at Rs 24.3 crores

EBIDTA up by 101% at Rs 15.6 crores compared to Rs 7.7 crores in Q1 FY’20

Profit after tax up by 196% at Rs 9.1 crores from Rs 3.1 crores in Q1 FY’20 based on
strong cost rationalization initiatives undertaken by the Company.
444
~~Ke~~y Business Highlights (Q1 FY’21)
Prestigious and large customer wins:22 credible new customer additions including:
o 15 new logo wins in the Americas region in Banking and Credit Union space
o Mid-sized project for a global leader in energy transportation based in Qatar,
(EMEA region)
o Project for one of the largest and fastest growing insurance companies in the
Philippines, offering financial security to 1.3 million individuals through group
and individual life insurance products (APAC region)
Making strong in-roads in the US market with new offerings: Newgen’s revenues from
the US region witnessed a growth of 36% YoY during the quarter, largely on the back of
solution deployments under the Paycheck Protection Program. Leading banks and credit
unions are now using Newgen for processing loan requests for PPP. Given Newgen’s
unique positioning, these opportunities are expected to help in deeper penetration in
the region thus supporting long term SaaS growth for the Company.
Banking & Financial Services and Insurance verticals continue to be the growth drivers
during the quarter with growth of 12% and 29% respectively.
Effective remote enablement measures:The Company continues to fulfill all customer
commitments
through
effective
remote
enablement
measures
including
institutionalizing new business processes and ways of working and thus leading to
better collaboration, efficient delivery, and enhanced productivity despite lack of in-
person interactions.

About Newgen

Connecting Enterprises. Transforming Experiences.

Newgen Software Technologies Limited (listed In India on National Stock Exchange [Script code: NEWGEN] and BSE Ltd. [Script code: 540900]), is a provider of Business Process Management, Enterprise Content Management and Customer Communication Management platforms with large, mission-critical solutions deployed at world’s leading banks, Governments, BPO’s & IT Companies, Insurance firms and Healthcare Organizations.

Disclaimer

==> picture [70 x 58] intentionally omitted <==

This press release may contain certain forward looking statements concerning Newgen Software Technologies’ future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth and new business opportunities, competition (both domestic and international), economic growth in India and the target countries for business, ability to attract and retain highly skilled professionals, time and cost over runs on projects, our ability to manage our international operations, government policies, interest and other fiscal costs generally prevailing in the economy. Past performance may not be indicative of future performance. The company does not undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the company.

Media Contact: Investor Contact:
Asif Khan
[email protected]
Deepti Mehra Chugh
[email protected]