Aurion Pro : Yet another IP product company?

AurionPro call on acquistion today:

  1. It’s 140Cr non cach transation. The company has around 200 employees
  2. No cash going out from AurionPro as it’s covered using receivables from Trejjara
  3. It gives opportunities for more cross selling opportunities and adds some insurance based customers
  4. The revenue opportunity is a mix of both recurring SaaS and license based offering
  5. The incremental revenue can be from selling more modules to the same client and increaing the price
  6. There will be no outstanding dues from Trejjara after the transaction
    My take: It seeems more like cleaning up the balance sheet from their old mess and it’s favourable to the shareholders

Can you explain what was thois Trejjara thing? [quote=“Naveen_Kengannar, post:21, topic:103941, full:true”]

My take: It seeems more like cleaning up the balance sheet from their old mess and it’s favourable to the shareholders

Can you explain this?

AurionPro had receivables pending from Trejhara which is a related party company. They acquired the company without paying any cash but adjusting against the receivables. After the transaction, Trejhara will become part of AurionPro contributing to its revenue and the receivables will be reduced from the balance sheet. It will improve the strength of the balance sheet and cash flow position.


From what I understand,
Its like Aurionpro had previously demerged the said business and its now acquiring a part of it to set off their receivables from Trejara(the previously demerged company).

Though it is a clean up activity, I feel this is a very good deal in terms of valuation

InteractDX has 45 crores revenue and 15 crores EBITDA…So it is purchased at around 9X … Generally services industry is valued at 7-10X

Considering that it is a established Product and with better margins (33.33% vs 22%) a 9X valuation is a good deal.

Few other points which I could recall

  • Last 3 years growth was around 8-10%. This year again it could be same or flatish. But in long run Aurionpro will be able to take this to their similar growth rate, which is around 25-30% range

  • Future R&D expenses will be in the similar lines of Aurionpro (I guess around 7-10%). Accounting will be same as Aurionpro and they will be expensing it out and not capitalizing it

  • They will be able to sell this in International market, where margins will be even better than this


So, they settled their receivables and also will be adding to their topline and bottomline every year.
Also, they can reach out to new clients for other products.
Nice. :smile:

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Before the demerger in FY19, this was an existing part of Aurionpro. They demerged it (didn’t sell it). Now they are buying it back at 140Cr. This basically looks like writing down of 140cr receivables. Ideally they should have booked this as a loss.

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Transcript of Analysts or Institutional investors meet held on September 07, 2023
for business update call.


Aurionpro announces a major order win in Transit space, secures an order in the City of Merida, Mexico.


One more product acquisition by Aurionpro. Omnifin, a Loan Management product with 45 banks and NBFCs as customers.

Last year it had a sales of around 21 crore … the total deal size is 82 crores

93fbb404-4fcc-4978-8c2d-adacac38c23d.pdf (1.1 MB)

EBITDA details unknown as of now… probably this is a bit higher valuation in comparison to the previous acquisition of InteractDX… Aurionpro would have evaluated option for Build vs Buy …plus the the time it takes to acquire this market size of 45 customers

Payment seems to be in the form of Cash and Equity
36 crores Cash +
26 crores worth Preferential shares +
20 crores deferred payment after 3 years

Preferential shares will be issued to Mr. Abhijit Mitra (founder of Omnifin product) who will be joining Aurionpro…he was ex Nucleus software Head India operations & products

I guess all the other employees who worked on this product will also join Aurionpro as was the case with previous acquisition.



The key takeaways from the provided information about Aurionpro Solutions Limited’s financial results and business updates for the second quarter and half-year ended September 30, 2023, are as follows:

Financial Results:

  • Aurionpro Solutions reported strong financial performance in Q2 FY24 and H1 FY24.
  • Revenue for the quarter stood at INR 211 Crores, representing a 37% YoY growth.
  • EBITDA for Q2 FY24 reached INR 46 Crores, a 32% YoY increase, with EBITDA margins at 21.82%.
  • Profit After Tax (PAT) for Q2 FY24 was INR 34 Crores, indicating a 36% YoY growth, with PAT margins at 16.10%.
  • Consolidated financial performance for both Q2 FY24 and H1 FY24 showed significant improvements in revenue, EBITDA, and PAT compared to the corresponding periods in the previous year.

Operational Highlights: Banking & Fintech:

  • Aurionpro’s subsidiary, Integro, secured a prestigious contract in the Philippines market for the implementation and maintenance of Smart Lender Commercial (SMLC) LOS for one of the largest banks.
  • The company received major orders for upgrading and enhancing iCashpro+ from existing customers.
  • Aurionpro announced the acquisition of Interact DX, a leading digital engagement platform for the Banking and Insurance industry.

Technology Innovation Group:

  • Aurionpro Transit Pte. Ltd. won an order for a rapid transit bus project in the city of Merida, Mexico.
  • The company secured an order from one of the largest non-banking auto-finance companies based in the Philippines for cloud managed services.
  • Aurionpro initiated the implementation of phase 2 of DC Build projects in Bangalore and Hyderabad.
  • The company continued to secure multiple projects to support digital and automation initiatives of Central and State governments in India.

Management Commentary:

  • Mr. Ashish Rai, Vice-Chairman & CEO, expressed satisfaction with the continued growth momentum in H1 across major business lines.
  • The strong business performance was attributed to disciplined execution and the efforts of the 2,000+ team members.
  • The company’s sales channel expansion has exceeded expectations.
  • Aurionpro continues to lead the Indian tech industry in creating new and unique solutions through collaborations with global Fintech providers.
  • The company is making significant investments in talent and acquisitions to support its R&D ambitions and growth.

Company has released 1.6% pledged shares from SBI


ttm top line seems good(37%) and price is also fallen ~16% from top. Forward PE 38.5

Guidance is 25-30%.
Also they are arranging an investor roadshow from 27th feb to 2nd march.

anybody got any view?


Established in 1997, Aurionpro Solutions Limited has been providing Software solutions based on homegrown IP. Aurionpro had a software services group, but 5 years ago they sold the business and started focusing only on the IP led business. Currently AurionPro has two core businesses

  1. Banking and Fintech - Banking products for Asian Banks.

  2. Technology Innovation Group - Vertically integrated in AFC (Automated Fare Collection, used for Metro train and bus ticketing), Platform solutions to Data Center & Cloud customers

AurionPro management goes deep in terms of product offering once they enter a segment. AurionPro made acquisitions in the AFC business segment, and developed fully integrated HW and SW platforms. Using these products AurionPro competes globally and has won orders from global transit customers including California. AurionPro has developed an EMV certified payment terminal. AurionPro’s Data Center Platform solutions business is new, and I am confident that they can scale this business in the coming years.

Average growth rate of Banking business is 15-20% whereas Technology Innovation business is 15%. They are growing at 30-35% in the past two years, but these growth rates may not be sustainable in the long run.

How AurionPro is different from the other SW businesses: The management has a spawner DNA. They venture into new businesses and they kill these businesses if they don’t work. For example, the Cyber Security group was killed in 2021. They have also killed SmartCity solutions business as they receive revenues from state govt. agencies and they are not predictable. Aurion acquired SC Soft which is a back bone of their AFC business.

Recurring revenue. Once Aurionpro delivers a solution, a portion of their revenues will become recurring in nature. Though management didn’t split recurring revenue contributions, it’s going be 15-20% of the order value. This is going to be a considerable part going forward as they start supporting more banks, transit systems.

Management Quality: The new CEO Ashish Rai is an amazing operator, and capital allocator. As the stock price went up, he raised the capital from the market for R&D and acquisitions. The company expends all the R&D instead of capitalizing as they launch the new platforms and solutions, hence the margins are not fully reflected for the matured businesses like Banking.

Valuation: AurionPro currently trades at 5250 Cr market cap trading at 30x EV/EBITA, and the management guides for 25-30% for the next few years. In 2023, AurionPro grew at 35%. To be on conservative side, I expect a growth rate of 20-25% is reasonable for the next 5 years.

AurionPro Corporate presentation for your reference:

**Disclosure: Owning the company for 5+Years with 20x return till date, my view maybe biased **


Why are receivables so high. 100 day debtor days and 150 Wc days. How many product companies have this high debtor days. NO FCF from last 5 years.

I get the Trejira thing which also looks suspect. Anyone investing here needs to track the actual cash flows rather than top line numbers.

Financials do not support this kind of upmove.


I wrote to their IR email asking for details and explanation on

A) some receivables higher than 3 years and some significant number higher than 1 year

B) impairment policy on receivables

C) why certain investors were chosen for the preference issue when they are not part of the promoter group

no response yet after 10 days. Sent reminder again.

Let’s see

Among other things

  1. NEW CEO looks good . Has finastra background so lots of new sales / deals/ product tie ups coming through that ecosystem

  2. trejira thing looked fishy BUT THEY Seem to have spun a good story around it

  3. not capitalising r and d and routing it through P and L could be a way to write off past sins

  4. don’t understand why their products are winning except the corporate lending suite , fx markets and the transport stack. All other new product lines look like they have a small TAM. Still need to read in more detail

Not invested but tracking

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Red flags:

Aurionpro continues its strategic acquisition path this time in AI


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