The shares of this smallcap company jumped around 2 percent after securing a major Deal with Malaysia’s Leading Bank to Modernize its Corporate Lending Processes. The shares have delivered a multi-bagger return of 195 percent to its shareholders.
Price movement:
With a market capitalization of 9,169 crores, the shares of Aurionpro Solutions Ltd started Wednesday’s trading session on a higher note at Rs. 1,655.10 compared to its previous close of Rs. 1,653.30. During the trading session, the shares hit a high of Rs. 1,704, gaining around 2 percent and are currently trading at Rs. 1,640 apiece.
What Happened:
Such a positive movement in the share price was observed after the company in an exchange filing announced that a strategic win with a leading bank in Malaysia to modernize its corporate processes. The deal is valued at close to USD 3 million and is expected to be implemented over a 15 months period.
The bank has chosen Integro Technologies, a subsidiary of Aurionpro, to transform its loan origination system with SmartLender, a cutting-edge commercial loan origination solution.
With the implementation of the SmartLender solution, the bank aims to automate all facets of corporate loan origination, streamline processes, and expedite processing times.
SmartLender Financial Analysis module will equip the bank with comprehensive financial insights, empowering them to make informed lending decisions and mitigate risk.
Furthermore, the company’s SmartLender ESG module will integrate Environmental, Social, and Governance considerations into the lending process, aligning with global sustainability standards. SmartCapture module will facilitate efficient data capture and seamlessly integrate with existing systems for a smooth transition.
Additionally, the Solicitors’ portal will streamline communication and document management with legal entities, guaranteeing adherence to regulations.
Financials:
Looking at the company’s financial statements, the revenue increased by 6 percent from Rs. 246.87 crores during the March quarter to Rs. 261.62 crores in the June quarter. In addition, the net profits jumped by 13 percent from Rs. 39.46 crores to Rs. 44.60 crores during the same period.
Comparing the same metrics on a YoY basis, the revenue surged by 32 percent from Rs, 198.69 crores during Q1FY24 to Rs. 261.62 crores in Q1FY25. On the other hand, the net profits zoomed by 41 percent from Rs. 31.58 crores to Rs. 44.60 crores during the same timeframe.
Shareholding Pattern:
According to the latest shareholding pattern, FIIs have raised their ownership from 6.27 percent in the March quarter to 12.85 percent in the June quarter.
Among them, Goldman Sachs, a global investment banker, bought a fresh stake in the company’s shares during the recent quarter by acquiring approximately 5.56 lakh equity shares equivalent to a 2.02 percent stake and the current holding value of his investment amounts to Rs. 91.3 crores.
Meanwhile, the DIIs have also increased stakes by 2.19 percent from 0.73 percent duirng Q4FY24 to 2.92 percent in Q1FY24.
Important Financial Ratio:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 15.16 percent and a return on capital employed (RoCE) of 18.36 percent for the period spanning FY23-24. Additionally, during the same period, the net profit margin stood at 16.10 percent.
Company Profile:
Established in 1997, Aurionpro Solutions Limited works in providing business solutions in the fields of Transaction Banking Platforms, Customer Experience (ACE Platform), Smart City and Smart Transportation experience and Cybersecurity solutions.
The company primarily offers software products and consulting services to the banking industry in India and abroad.
Written By Vaibhav Patil
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