Smallcap IT stock locked at 5% upper circuit to hit 52-week high after net profit rises 44% in Q3FY24; do you own?

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Newgen Software Share Price: Shares of IT software firm Newgen Software Technologies Ltd were locked at over five per cent upper circuit to hit its fresh 52-week high mark of ₹898.60 on the BSE, after announcing its October-December quarter results for fiscal 2023-24 (Q3FY24) earlier today. Newgen Software Technologies' net profit rose 44 per cent in the December quarter at ₹68.3 crore, compared to ₹47.3 crore in the year-ago period. The software company's revenue from operations in the third quarter of current fiscal stood at ₹324 crore, registering a growth of 27 per cent, compared to ₹255 crore in the corresponding period last year.

Also Read: Newgen Software share price rallies over 4% after Jefferies raises target The revenue growth was driven by strong growth in banking and financial services across geographies. In the APAC region, Newgen Software won an order of ₹9 crore from one of the leading universal banks in the Philippines. The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 35 per cent on a sequential basis to ₹77 crore compared to ₹57 crore.

The margin came in at 23.8 per cent, up 440 basis points compared to 19.4 per cent in the preceding September quarter. “In the nine month period ending December 2023, Newgen has demonstrated strong growth in revenues led by India and EMEA. We are witnessing tremendous opportunities in the Lending and Trade Finance space.