ValuePickr Forum

Newgen Software

Their major buyer are government organisations like LIC, Armed Forces etc.

In govt. the financial year cycle for expenditure usually impacts procurement and a lot of bunching up happens at March end.

Thanks. Something to look forward in this quarter result, as q4 base is higher and if it grows on it then story will be even more stronger, but if they managed to spread out in earlier quarters then it will be punctured little bit, though from long term perspective it is nice to not have consistent revenue across quarters…

2019 Q4 results released.
Looks good going and traction in orders. To be observed further.
Results:https://go.newgensoft.com/acton/attachment/13651/f-3d19c8a8-dacf-451e-acb4-b04eb7fe1676/1/-/-/-/-/NewgenOutcomeBM15052019.pdf
Press release: https://newgensoft.com/wp-content/uploads/2018/03/Newgen-Press-Release-Q4-FY19-FINAL.pdf
Presentation: https://go.newgensoft.com/acton/attachment/13651/f-6572e079-cb5c-4c23-86ef-24f643eb7f51/1/-/-/-/-/Newgen%20-%20Investor%20Presentation%20Mar%202019%20FINAL.pdf

A good series to get a feel for the trial and tribulations of a tech startup is silicon valley. Especially if you want to get a sense of VC funding, patent battles, code theft , management and board battles etc. The series is a comedy but a lot of things in there to absorb and learn. Enjoyed watching it and getting a ringside view of how things work

I did not know that you could get a patent on a general idea without even having a working implementation. All news to me.

Newgen Makes its OmniFlow iBPS Platform More Intelligent with Process Insights
Process Insights to help enterprises deliver superior customer experience.
Software experts may comment on above. Their product looks to have good traction.

HI Bheeshma,

Are you referring to some link here? If so, please share the link

Key features of Process Insights v1.0 include:
• Scenario definition - Sets up real-world business scenarios through an intuitive, no-code web
interface, to create process scenarios and run simulations on deployed processes.
• Simulation - Simulates impact on processes under varying conditions such as resource
availability, cost, SLA, and inbound load.
• Visualization - Monitors simulation and process performance leveraging dashboards and
reports -to visually identify bottlenecks and severity with color-coded heat maps.
• What-if analysis - Helps predict the impact of real-life strategic and tactical changes in
business operations, by simulating multiple what-if scenarios.
• Forecasting and recommendation - Helps forecast workload based on past data and predicts process KPls based on simulated historical scenarios, to suggest the best course of action.

The above features are an add on to facilitate analytics, projections, forecasting etc. While they might be value adds to existing customers using the product, I would not be surprised to find other BPM products in the market offering such features.

Do we know who are newgen’s direct competitors in their space of offerings?

1 Like

There seems a dozen competitors to newgen with few having better ratings: -

Its a TV series. You can read more about it on wikipedia

There are a lot of clips on youtube which you can refer to, however watching back to back episodes is much more fun and informative

Best
Bheeshma

That’s wonderful. Thank you!

http://kfpl.karvy.com/images/2019/NEWG_8694/Newgen%20Annual%20Report%202018-19.pdf

NewGen Annual Report for 2018-19.

New Patent filed in India by Newgen. Headline seems good but could not get further details of the patent. Can the details be obtained from somewhere?

17 July 2019 Press Release.pdf (43.8 KB)

Disc: Not invested but tracking

The co posted very good results yesterday and continues adding new clients and new geographies. In the quarter it incorporated an Australian subsidiary which hasnt contributed yet to topline. yoy growth is 23%. The patent it received in July concerns assessing the quality of scanned documents.

The good part about this co is the multiple sources of revenue streams from different clients and different geographies leading to stability in the overall revenues. The Q1 profitability is typically the lowest in the 4 quarters and Q4 is the highest by a big amount.

There was some lease accounting standard change which i dont understand but impacted book EBITDA and retained earning calculations.

Best
Bheeshma

Disc - invested

Agree with you @bheeshma

The overall story seems good from a business perspective. Newgen’s presence in not so niche space (ECM, BPM, CCM - generic across domains) should help the business grow horizontally across industries and vertically through customisations/personalization, which the management does claim. This is unlike Majesco whose focus is only the Insurance vertical with deep domain expertise, in a way, not enabling it to grow across domains. Newgen’s growing SaaS/cloud revenue (annuity streams) shall only grow from here with further client additions.

One point though - While subsidiaries are established across geographies with their financials captured in the consolidated results, not sure why there is an Indian subsidiary too and thereby what does the standalone financials reflect. Any idea on this?

Regards
Iyer

Hi iyer , no clue why that subsidiary is there but it seems to have negligible assets and profits. In the related party transactions there seems to be some rental transaction with it.