Are Newgen Software latest results good or bad?

Newgen Software Technologies has reported financial results for the quarter ending June 2025 that highlight a challenging operational environment. The company's Profit Before Tax less Other Income (PBT) is recorded at Rs 34.72 crore, which reflects a year-on-year decline of 10.81%, marking the lowest PBT in the past five quarters. This trend raises concerns regarding the company's profitability.
The Operating Profit, measured as PBDIT, has similarly reached a five-quarter low at Rs 45.00 crore, contributing to a decrease in the Operating Profit Margin, which now stands at 14.03%. This decline in efficiency suggests potential difficulties in maintaining operational performance.

Moreover, Newgen Software's reliance on non-operating income has become more pronounced, with this income constituting 45.84% of the PBT. The peak of non-operating income at Rs 29.39 crore indicates a significant dependency on income from non-business activities, which may not provide a sustainable financial foundation in the long term.

Overall, the financial results indicate a period of difficulty for Newgen Software Technologies, and the company saw an adjustment in its evaluation. The data reflects a slowdown in key performance metrics compared to the previous year, with net sales growth at 1.89% and consolidated net profit growth at 4.52%, both of which are lower than the corresponding figures from June 2024.