New Delhi: IT company Newgen Software on Tuesday reported 34 per cent decline in consolidated profit to Rs 41.5 crore in the fourth quarter ended March 31, due to restrictions imposed across several geographies to curb coronovirus.
The company had recorded profit after tax of Rs 62.5 crore in the same period a year ago.
The total income of the company fell 3 per cent to Rs 200 crore in the quarter under review from Rs 206.5 crore in the year-ago period.
“Our business has heavy dependence on the fourth quarter. However, fourth quarter performance was lower than expected impacted by new business deferments due to restrictions imposed globally starting in February 2020 and the subsequent evacuation operations; as well as continuing economic and banking sector slowdown in India market,” Newgen Software Technologies Chairman and MD Diwakar Nigam said in a statement.
For 2019-20, Newgen posted 29 per cent decline in PAT at Rs 72.7 crore compared to Rs 102.2 crore it registered at the end of 2018-19.
Total income of the company grew by 6 per cent to Rs 681.7 crore in FY20 as against Rs 641 crore in the previous fiscal.
“While in the short term the environmental challenges are expected to continue to lead to delay in new deals signings, we believe that today, the relevance and requirement of our digital solutions for enterprises is more than ever. We are thus transforming ways of working by aggressively pursuing cloud deployments across the globe,” Nigam said.