Rating Rationale
December 23, 2024 | Mumbai
Aurionpro Solutions Limited
'CRISIL A-/Stable/CRISIL A2+' assigned to Bank Debt
 
Rating Action
Total Bank Loan Facilities RatedRs.50 Crore
Long Term RatingCRISIL A-/Stable (Assigned)
Short Term RatingCRISIL A2+ (Assigned)
Note: None of the Directors on CRISIL Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings.
1 crore = 10 million
Refer to Annexure for Details of Instruments & Bank Facilities

Detailed Rationale

CRISIL Ratings has assigned its ‘CRISIL A-/Stable/CRISIL A2+’ ratings to the bank loan facilities of Aurionpro Solutions Limited (ASL)

 

The ratings reflects the established market position in the presence supported by extensive experience of the promoters in the IT industry, backed by strong product basket, established and diverse customer base. The rating also factors experienced management team and strong financial risk profile marked by negligible debt level and adequate liquidity. These strengths are partially setoff by large working capital requirements in the technology innovation group (TIG) segment and exposure to intense competition

Analytical Approach

CRISIL ratings has combined the business and financial risk profile of ASL and its subsidiaries. This is because all these entities , collectively referred to as the Aurionpro group have common promoters, are in the same business and have significant operational, managerial and financial linkages.

 

Please refer Annexure - List of Entities Consolidated, which captures the list of entities considered and their analytical treatment of consolidation.

Key Rating Drivers & Detailed Description

Strengths:

  • Established market presence in the IT industry: ASL has a strong market position in the BFSI software segment, marked by diverse product portfolio providing solutions across lending, corporate banking, treasury, fraud prevention risk management, internet banking, payments and forex. ASL’s proprietary lending suite is considered among the top 5 globally as per market reports. In addition, it also provides solutions in smart mobility and data centre solutions, hybrid cloud services and smart city initiatives. Backed by acquisitions and in-house development, revenues are increasing year on year. The company has already reported Rs Rs 539 crores in H1 of fiscal 2025 which is 31% more than last year H1 performance and estimated to cross Rs 1000 crores revenues in fiscal 2025.

 

  • Strong customer base: ASL has a strong customer base across India, Asia Pacific, the US, Middle East and Africa. The customer base comprises of major players in the BFSI, fintech, data centres, capital markets, telecom and other sectors. It caters to most large banks in the region it operates and insurance companies in the BFSI segment. It has longstanding relationships of more than 8 years on average with top customers. The top 10 customers contributed to 48% revenues in fiscal 2024.

 

  • Experienced management team: ASL has a strong management team with the promoters' experience of over 3 decades and other top management personnel who have 20+ years of experience in the industry. ASL benefits from their strong understanding of market dynamics, as well as in depth domain knowledge of developing software and related solutions, which will continue to support the business. The management has hence been able to advance its technical capabilities through acquisitions and development.

 

  • Strong financial risk profile: ASL’s networth increased to Rs 573 crores as on March 31, 2024 on account of preferential issue of Rs 200 crores in February 2024. It is expected to increase further in fiscal 2025 and the company raised Rs. 363 crores through QIP in April 2024. The capital structure remains strong as highlighted by the total outside liabilities to adjusted networth (TOLANW) and gearing below 1 time, as on March 31, 2024, and expected to improve due to repayment of debt post fund raising. ASL’s debt protection have been healthy as indicated by the interest cover and net cash accruals to adjusted debt (NCAAD) ratios at 15.5 times and 2.28 times, respectively, in fiscal 2024. The debt protection metrics are expected to remain at similar levels backed by healthy profitability.

 

Weaknesses:

  • Large working capital requirements: The operations of the company are working capital intensive with gross current asset (GCA) days of 282 days as on March 31, 2024 driven by higher debtors days. The average credit period in banking and fintech segment is 60-90 days, while its 150-180 days in TIG segment due to milestone-based payment structure. There are debtors more than 6 months of around Rs 60 crores from the TIG segment. With strong revenue growth expected, the working capital requirements shall increase and management of same in absence of sufficient limits remain a key monitorable.

 

  • Exposure to intense competition: ASL derives 52% revenue rom the BFSI vertical, rendering revenue growth volatile and susceptible to cyclicality in the global financial sector. Furthermore, given the healthy business prospects in BFSI, the competitive intensity is also high with presence of several global and Indian vendors. This, combined with, typically high client retention and long tenure of product implementation, acts as a high entry barrier for product companies in the BFSI space.

Liquidity: Strong

The bank limit utilization remains at around 46% on an average for the past 12 months ended September 2024. The net cash accruals are expected to remain healthy and sufficient between Rs. 185-220 crores against the low repayment obligations of around Rs 7 crores and Rs. 4 crores in fiscal 2025 and fiscal 2026, respectively. The company has repaid the majority of its debt with the fund raise done in Q1 of fiscal 2025. The current ratio remains strong at 2.21 times and cash and bank balance of Rs 176 crores as on September 2024

Outlook: Stable

CRISIL Ratings believes that ASL will benefit from the established strong market presence with healthy financial risk profile

Rating Sensitivity Factors

Upward Factors:

  • Healthy and sustained improvement in scale of operations while maintaining operating margin
  • Sustenance of the financial risk profile with improved working capital cycle marked by GCA of below 230 days

 

Downward Factors:

  • Significant decline in the scale of operations or weaker operating profitability, weakening net cash accruals
  • Sustained stretch in working capital cycle marked by GCA days more than 300 days
  • Large debt funded acquisition or high dividend payout weakening the financial risk profile and liquidity

About the Group

ASL was incorporated in October 1997 as a private limited company and converted to a public limited company in March 2005. The company is engaged in providing information technology services in corporate banking, treasury, fraud prevention, risk management and internet banking and cloud-based services. The company specializes in providing services to the banking, financial services and insurance (BFSI) and fintech industry and also provides technology innovation solutions.

 

Headquartered in Mumbai (Maharashtra), ASL has offices in Singapore, Thailand, Vietnam, Malaysia, UAE, Philippines, Australia, USA, Indonesia.

 

ASL is promoted by Mr. Paresh Zaveri and Mr. Amit Sheth, while day to day operations are managed by Mr. Asish Rai, Director and CEO.

 

It is listed on the National Stock Exchange Limited (NSE) and BSE Limited (BSE)

Key Financial Indicators: Consolidated

As on / for the period ended March 31

Unit

2024

2023

Operating income

Rs crore

888.14

659.76

Reported profit after tax

Rs crore

142.93

101.89

PAT margins

%

16.09

15.44

Adjusted Debt/Adjusted Networth

Times

0.12

0.19

Interest coverage

Times

15.22

13.36

Any other information: Not Applicable

Note on complexity levels of the rated instrument:
CRISIL Ratings` complexity levels are assigned to various types of financial instruments and are included (where applicable) in the 'Annexure - Details of Instrument' in this Rating Rationale.

CRISIL Ratings will disclose complexity level for all securities - including those that are yet to be placed - based on available information. The complexity level for instruments may be updated, where required, in the rating rationale published subsequent to the issuance of the instrument when details on such features are available.

For more details on the CRISIL Ratings` complexity levels please visit www.crisilratings.com. Users may also call the Customer Service Helpdesk with queries on specific instruments.

Annexure - Details of Instrument(s)

ISIN Name Of Instrument Date Of Allotment Coupon Rate (%) Maturity Date Issue Size (Rs.Crore) Complexity Levels Rating Outstanding with Outlook
NA Bank Guarantee NA NA NA 37.00 NA CRISIL A2+
NA Cash Credit NA NA NA 6.00 NA CRISIL A-/Stable
NA Proposed Cash Credit Limit NA NA NA 7.00 NA CRISIL A-/Stable

Annexure – List of entities consolidated

Name of Entities Consolidated

Extent of Consolidation

Rationale for Consolidation

Aurionpro Solutions Limited

100%

Parent company

Aurionpro Solutions Pte Limited

100%

Together referred as the group,

operate in the same industry and

under a common management.

Aurofidel Outsourcing Limited

100%

Intellvisions Solutions Private Limited

100%

SC Soft Technologies Private Limited

100%

Integro Technologies Pte. Ltd

100%

Aurionpro Fintech Inc

100%

SC Soft Pte Ltd.

90%

PT Aurionpro Solutions

80%

Aurionpro Holdings Pte. Ltd

100%

Aurionpro Payment Solutions Pte Ltd

100%

Neo BNK Pte Ltd.

100%

Aurionpro Solutions (Africa) Ltd

50%

Aurionpro Payment Solutions Pvt Ltd.

100%

Aurionpro Foundation

100%

Aurionpro Transit Solutions Pvt Ltd.

100%

Integro Technologies SDN BHD

100%

Integro Technologies Co. Ltd.

100%

Aurionpro Market Systems Pte Ltd.

100%

Integrosys Corporation

100%

Integro Technologies (Vietnam) Limited Liability Company

100%

Spike Inc (Upto 31/03/2023)

100%

Aurionpro Solutions PLC

100%

Extrabox Pte Ltd. (Upto 31/03/2023)

51%

SC Soft SDN BHD

51%

Shenzhen SC Trading Co. Limited

51%

SC Soft Inc, Canada (w.e.f.16/03/2022)

100%

Aurionpro Technology Solutions Pty Ltd, Australia (w.e.f.19/04/2022)

100%

Aurionpro Toshi Automatic Systems Private Limited, India (w.e.f. 04/09/2022 and Associate till 03/09/2022)

100%

Real Patients Solutions Inc., USA (Formerly known as Hello Patients Solutions Inc., USA) (w.e.f.18/08/2022)

100%

SC Soft Americas LLC, Canada (w.e.f.01/01/2023)

100%

Aurionpro Transit Technologies Solutions Limited, Turkey (Formerly known as SC Soft Information Technology

Consultancy Co. Ltd., Turkey)

100%

Intellvisions Software LLC, UAE

49%

Aurlonpro Middle East for Information Technology Company (Aurionpro MENA), Saudi Arabia (w.e.f. 16/01/2023)

49%
Annexure - Rating History for last 3 Years
  Current 2024 (History) 2023  2022  2021  Start of 2021
Instrument Type Outstanding Amount Rating Date Rating Date Rating Date Rating Date Rating Rating
Fund Based Facilities LT 13.0 CRISIL A-/Stable   --   --   --   -- --
Non-Fund Based Facilities ST 37.0 CRISIL A2+   --   --   --   -- --
All amounts are in Rs.Cr.
Annexure - Details of Bank Lenders & Facilities
Facility Amount (Rs.Crore) Name of Lender Rating
Bank Guarantee 15 ICICI Bank Limited CRISIL A2+
Bank Guarantee 22 State Bank of India CRISIL A2+
Cash Credit 5 ICICI Bank Limited CRISIL A-/Stable
Cash Credit 1 HDFC Bank Limited CRISIL A-/Stable
Proposed Cash Credit Limit 7 Not Applicable CRISIL A-/Stable
Criteria Details
Links to related criteria
CRISILs Bank Loan Ratings - process, scale and default recognition
Rating criteria for manufaturing and service sector companies
CRISILs Approach to Financial Ratios
CRISILs Criteria for rating short term debt
CRISILs Criteria for Consolidation

Media Relations
Analytical Contacts
Customer Service Helpdesk

Ramkumar Uppara
Media Relations
CRISIL Limited
M: +91 98201 77907
B: +91 22 3342 3000
ramkumar.uppara@crisil.com

Prakruti Jani
Media Relations
CRISIL Limited
M: +91 98678 68976
B: +91 22 3342 3000
PRAKRUTI.JANI@crisil.com

Rutuja Gaikwad 
Media Relations
CRISIL Limited
B: +91 22 3342 3000
Rutuja.Gaikwad@ext-crisil.com


Himank Sharma
Director
CRISIL Ratings Limited
D:+91 124 672 2152
himank.sharma@crisil.com

Ankita Gupta
Associate Director
CRISIL Ratings Limited
D:+91 22 4097 8104
ankita.gupta@crisil.com

Nivedita Gupta
Rating Analyst
CRISIL Ratings Limited
B:+91 22 3342 3000
Nivedita.Gupta@crisil.com		Timings: 10.00 am to 7.00 pm
Toll free Number:1800 267 1301

For a copy of Rationales / Rating Reports:
CRISILratingdesk@crisil.com
 
For Analytical queries:
ratingsinvestordesk@crisil.com

 

Note for Media:
This rating rationale is transmitted to you for the sole purpose of dissemination through your newspaper/magazine/agency. The rating rationale may be used by you in full or in part without changing the meaning or context thereof but with due credit to CRISIL Ratings. However, CRISIL Ratings alone has the sole right of distribution (whether directly or indirectly) of its rationales for consideration or otherwise through any media including websites and portals.


About CRISIL Ratings Limited (A subsidiary of CRISIL Limited, an S&P Global Company)

CRISIL Ratings pioneered the concept of credit rating in India in 1987. With a tradition of independence, analytical rigour and innovation, we set the standards in the credit rating business. We rate the entire range of debt instruments, such as bank loans, certificates of deposit, commercial paper, non-convertible/convertible/partially convertible bonds and debentures, perpetual bonds, bank hybrid capital instruments, asset-backed and mortgage-backed securities, partial guarantees and other structured debt instruments. We have rated over 33,000 large and mid-scale corporates and financial institutions. We have also instituted several innovations in India in the rating business, including ratings for municipal bonds, partially guaranteed instruments and infrastructure investment trusts (InvITs).

CRISIL Ratings Limited ('CRISIL Ratings') is a wholly-owned subsidiary of CRISIL Limited ('CRISIL'). CRISIL Ratings Limited is registered in India as a credit rating agency with the Securities and Exchange Board of India ("SEBI").

For more information, visit www.crisilratings.com 

 



About CRISIL Limited

CRISIL is a leading, agile and innovative global analytics company driven by its mission of making markets function better. 

It is India’s foremost provider of ratings, data, research, analytics and solutions with a strong track record of growth, culture of innovation, and global footprint.

It has delivered independent opinions, actionable insights, and efficient solutions to over 100,000 customers through businesses that operate from India, the US, the UK, Argentina, Poland, China, Hong Kong and Singapore.

It is majority owned by S&P Global Inc, a leading provider of transparent and independent ratings, benchmarks, analytics and data to the capital and commodity markets worldwide.

For more information, visit www.crisil.com

Connect with us: TWITTER | LINKEDIN | YOUTUBE | FACEBOOK

CRISIL PRIVACY NOTICE
 
CRISIL respects your privacy. We may use your contact information, such as your name, address and email id to fulfil your request and service your account and to provide you with additional information from CRISIL. For further information on CRISIL's privacy policy please visit www.crisil.com.



DISCLAIMER

This disclaimer is part of and applies to each credit rating report and/or credit rating rationale ('report') provided by CRISIL Ratings Limited ('CRISIL Ratings'). For the avoidance of doubt, the term 'report' includes the information, ratings and other content forming part of the report. The report is intended for use only within the jurisdiction of India. This report does not constitute an offer of services. Without limiting the generality of the foregoing, nothing in the report is to be construed as CRISIL Ratings provision or intention to provide any services in jurisdictions where CRISIL Ratings does not have the necessary licenses and/or registration to carry out its business activities. Access or use of this report does not create a client relationship between CRISIL Ratings and the user.

The report is a statement of opinion as on the date it is expressed, and it is not intended to and does not constitute investment advice within meaning of any laws or regulations (including US laws and regulations). The report is not an offer to sell or an offer to purchase or subscribe to any investment in any securities, instruments, facilities or solicitation of any kind to enter into any deal or transaction with the entity to which the report pertains. The recipients of the report should rely on their own judgment and take their own professional advice before acting on the report in any way.

CRISIL Ratings and its associates do not act as a fiduciary. The report is based on the information believed to be reliable as of the date it is published, CRISIL Ratings does not perform an audit or undertake due diligence or independent verification of any information it receives and/or relies on for preparation of the report. THE REPORT IS PROVIDED ON “AS IS” BASIS. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAWS, CRISIL RATINGS DISCLAIMS WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR OTHER WARRANTIES OR CONDITIONS, INCLUDING WARRANTIES OF MERCHANTABILITY, ACCURACY, COMPLETENESS, ERROR-FREE, NON-INFRINGEMENT, NON-INTERRUPTION, SATISFACTORY QUALITY, FITNESS FOR A PARTICULAR PURPOSE OR INTENDED USAGE. In no event shall CRISIL Ratings, its associates, third-party providers, as well as their directors, officers, shareholders, employees or agents be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of any part of the report even if advised of the possibility of such damages.

The report is confidential information of CRISIL Ratings and CRISIL Ratings reserves all rights, titles and interest in the rating report. The report shall not be altered, disseminated, distributed, redistributed, licensed, sub-licensed, sold, assigned or published any content thereof or offer access to any third party without prior written consent of CRISIL Ratings.

CRISIL Ratings or its associates may have other commercial transactions with the entity to which the report pertains or its associates. Ratings are subject to revision or withdrawal at any time by CRISIL Ratings. CRISIL Ratings may receive compensation for its ratings and certain credit-related analyses, normally from issuers or underwriters of the instruments, facilities, securities or from obligors.

CRISIL Ratings has in place a ratings code of conduct and policies for managing conflict of interest. For more detail, please refer to: https://www.crisil.com/en/home/our-businesses/ratings/regulatory-disclosures/highlighted-policies.html. Public ratings and analysis by CRISIL Ratings, as are required to be disclosed under the Securities and Exchange Board of India regulations (and other applicable regulations, if any), are made available on its websites, www.crisilratings.com and https://www.ratingsanalytica.com (free of charge). CRISIL Ratings shall not have the obligation to update the information in the CRISIL Ratings report following its publication although CRISIL Ratings may disseminate its opinion and/or analysis. Reports with more detail and additional information may be available for subscription at a fee.  Rating criteria by CRISIL Ratings are available on the CRISIL Ratings website, www.crisilratings.com. For the latest rating information on any company rated by CRISIL Ratings, you may contact the CRISIL Ratings desk at crisilratingdesk@crisil.com, or at (0091) 1800 267 1301.

CRISIL Ratings uses the prefix 'PP-MLD' for the ratings of principal-protected market-linked debentures (PPMLD) with effect from November 1, 2011, to comply with the SEBI circular, "Guidelines for Issue and Listing of Structured Products/Market Linked Debentures". The revision in rating symbols for PPMLDs should not be construed as a change in the rating of the subject instrument. For details on CRISIL Ratings' use of 'PP-MLD' please refer to the notes to Rating scale for Debt Instruments and Structured Finance Instruments at the following link: https://www.crisilratings.com/en/home/our-business/ratings/credit-ratings-scale.html