Newgen Software sees 20% topline growth in FY24; to hire from campuses

economictimes.indiatimes.com:

Newgen Software Technologies is «confident» of about 20% topline growth for FY24, backed by resilience of its focus markets like India and Asia Pacific which are growth drivers, a top official said. The company is looking at hiring about 400-500 people from campuses this year to meet its business requirements, having fulfilled its commitment of timely onboarding of campus recruits last year, Virender Jeet, CEO of Newgen Software, told PTI. Unlike many IT services companies that are facing macro headwinds in their primary markets of US and Europe, Newgen focuses on emerging markets, which offer plenty of headroom for growth, are underserviced and keen to bolster their digital play.

«Our investments largely happen in research and development, and sales, and we will continue that momentum. We are not looking at holding back any investments this year,» he said. For the quarter ended June, Newgen's revenue from operations stood at Rs 251.7 crore, up 34% over the year-ago period.

Its profit after tax came in at Rs 30.2 crore for the April-June quarter of the current fiscal, registering a growth of 57%. «Our business is very different from the traditional Indian IT services business, which is very service-oriented. We are software product based business, so we have offtake on product sales both on downturn where our products can be used for managing costs, or during upturn when there is growth,» he said.

The company's confidence primarily stems from the strength of its current markets like India, Middle East and Asia Pacific, which together contribute 70% of its business. Newgen said that its exposure to the US is «very small right now», and that the company will build some momentum in that market. It currently has 3,800