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.