Newgen Software Shares Plunge 15% After Q3 Profit Drops 23%, Revenue Stagnates

• Newgen Software's shares plummeted over 15% on Tuesday, January 20, following its December quarter results.
• Net profit for the December quarter fell 23.2% to Rs 63 crore, down from Rs 82 crore in the previous quarter.
• A one-time expense of Rs 35 crore due to a new labor code significantly impacted the quarterly profit.
• Revenue remained flat at Rs 400 crore, indicating negligible topline growth and raising market concerns.
• Despite weak profit and revenue, operational efficiency improved with EBIT up 3.1% and EBITDA margin rising to 24.2%.

Why It Matters: Newgen Software's shares crashed due to a significant profit drop and flat revenue in the December quarter.