Shares of Newgen Software Technologies witnessed sharp selling pressure in Tuesday’s intraday trade after the company reported its December quarter (Q3) earnings. The stock fell more than 8% as investors reacted to a decline in quarterly profit and muted revenue performance.
As of 1:51 PM IST, Newgen Software shares were trading 8.13% lower at ₹675.45 on the NSE.
For the third quarter, Newgen Software reported a net profit of ₹63 crore, registering a sequential decline of 23.2% compared with ₹82 crore in the previous quarter. Revenue for the period stood at ₹400.3 crore, marginally lower by 0.2% on a quarter-on-quarter basis from ₹401 crore, indicating a largely flat topline performance.
Despite the pressure on profit and revenue, operating performance showed some resilience. Earnings before interest and tax (EBIT) rose 3.1% quarter-on-quarter to ₹97 crore from ₹93.3 crore in Q2. Operating margin improved to 24.2% compared with 23.3% in the preceding quarter, reflecting better cost control and operating efficiency.
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