Newgen Software CEO Expects Deal Flow To Improve, Credits Credit Revival In America
In a recent conversation with NDTV Profit, Newgen Software Chief Executive Officer, Virender Jeet, expressed optimism about the company’s future growth prospects. Despite calling the first quarter ‘muted’, Jeet confirmed that Newgen Software has returned to its ‘normal growth trajectory’.
Consistent Growth Pattern
Jeet noted that the company has a consistent growth pattern, attributing the recovery to successful sales and marketing efforts, which have secured new deals and acquisitions. However, he admitted that the growth rate in the first half of the year was slowed by increasing decision-making times for larger deals, causing some opportunities in the sales funnel to be delayed.
Looking ahead, Jeet is optimistic that the decision-making cycle ‘should get better over the next few quarters.’ He anticipates a renewed interest in automation solutions, especially in the US, correlating with ‘credit revival in regions like America.’ This trend is expected to positively impact the Indian IT sector, with Newgen Software being a key player.
Indian Market Opportunities
In India, a major driver of their recent growth has been the Public Sector Undertaking banks, which are now being joined by private banks upgrading their systems. Jeet expects India’s banking sector to see a further revival, though he advises a ‘wait and watch’ approach due to prevailing uncertainties regarding trade and regulations.
The Indian market remains a significant opportunity for Newgen, which is actively working on new products related to trade automation and payments. As a product company, Jeet emphasizes that their primary focus is on investment-led growth. ‘The business has margins but our interest is to invest in growth,’ he stated, adding that they are exploring both organic and inorganic avenues for future deployment.
Artificial Intelligence and Future Growth
Newgen Software, according to the CEO, has secured ‘early wins across AI spaces’ and is prepared to increase both investment and manpower to support future product development in the AI domain. This strategic move is expected to further boost the company’s growth prospects and cement its position in the Indian tech industry.
As the company continues to focus on innovation and growth, investors and traders can expect Newgen Software to remain a key player in the Indian stock market. With its strong growth trajectory and expanding product offerings, the company is well-positioned to capitalize on emerging trends and opportunities in the Indian stock market.
Investment Strategies
For investors looking to capitalize on the growth potential of Newgen Software, it’s essential to have a well-diversified portfolio and a long-term investment strategy. This can include investing in a mix of large-cap stocks, micro-cap stocks, and mid-cap stocks, as well as exploring opportunities in the IT sector.
Additionally, investors can consider investing in exchange-traded funds (ETFs) or index funds that track the performance of the Indian stock market, providing a broad-based exposure to the market.
Conclusion
In conclusion, Newgen Software’s CEO, Virender Jeet, expects the company’s deal flow to improve, driven by a credit revival in America and a growing demand for automation solutions. With its strong growth trajectory, expanding product offerings, and strategic focus on innovation, Newgen Software is well-positioned to capitalize on emerging trends and opportunities in the Indian stock market.
As the company continues to focus on investment-led growth, investors and traders can expect Newgen Software to remain a key player in the Indian stock market. By having a well-diversified portfolio and a long-term investment strategy, investors can capitalize on the growth potential of Newgen Software and the Indian stock market as a whole.