Aurionpro Jul-24

Ashish Rai's Position

• Ashish Rai is the CEO of Aurionpro Solutions Limited.

Revenue Growth

• The reported revenue growth for Q1 FY25 was not provided.

Conference Call Details

• The mode of participant lines during the conference call was not provided.
• The details for participant assistance during the call were not provided.

Forward-Looking Statements Risk

• The risk associated with the forward-looking statements mentioned during the call was not provided.

Opening Remarks

• Ashish Rai introduced the opening remarks during the earnings conference call.
• The call then proceeded to a question-and-answer session with analysts.

Management Discussion

• The management discussion focused on the performance of the Aurionpro Solutions Limited. They specifically discussed:
  • The company's vision regarding enterprise AI solutions.
  • Their plans to enter new markets.
  • Their progress in different sectors.
  • Their approach to product development.
  • Their financial outlook.

Aurionpro's Technological Focus

• Aurionpro believes that the value of technology lies in its ability to leverage AI to solve real-world problems.

Enterprise AI Solutions

• Aurionpro aims to build its enterprise AI solutions in the following sectors:
  • Finance
  • Telecom
  • Retail
  • Energy
  • Healthcare
  • Manufacturing

Aurionpro's View on LLMs

• Aurionpro believes that calling API calls to LLMs is a "very dangerous" method, as it depends heavily on external providers.

Aurionpro's Enterprise Applications

• Aurionpro is developing applications for enterprise use, including those in the:
  • Finance sector, such as fraud detection.
  • Telecom sector, for things like call routing and marketing.

Competition in Gen AI and Foundation Models

• Aurionpro believes that the competition in Gen AI and foundation models is fierce.

Aurionpro's Assessment of Arya.ai

• Aurionpro considers Arya.ai a very strong player in the AI space.

Global Market Strategy

• As part of their Global Market Strategy, Aurionpro plans to acquire and integrate smaller companies in various markets to expand its reach.

A S Software Experience

• A S Software primarily has experience in the banking and financial services sector (BFS).

A S Software's Focus

• The A S Software team focuses on building innovative technology-driven solutions.

Increase in Transformation Project Demand

• The increase in demand for transformation projects in lending is primarily due to:
  • Growing adoption of digital banking.
  • The need for new products and services.
  • The requirement for enhanced customer experience.

Data Center Market Opportunity

• The data center market opportunity is substantial, with a considerable share of global IT spending expected to be allocated to it.

Growth Opportunity Focus

• The discussion highlights Southeast Asia as a significant growth opportunity.

Technology Spending in Asia

• According to the discussion, Asia is projected to have a "very high" level of technology spending.

AI Market Outlook

• The AI market is expected to experience considerable growth in the coming years, driven by factors such as the increasing availability of data and the development of advanced AI algorithms.

Southeast Asia Penetration Level

• The current penetration level of the discussed products in Southeast Asia is considered low, suggesting potential for future growth.

Product Development Strategy

• The team uses a strategic approach to product development, aiming for a mix of niche solutions and broader market offerings.

Aurionpro's Focus for Upcoming Years

• Aurionpro will focus on developing its AI-based solutions and expanding its presence in new markets, particularly in Southeast Asia.

Margin Growth Expectation

• Ashish Rai indicated that the company expects margin growth in the near term, although he did not provide specific figures.

Financial Impact of Arya.AI and Payment License

• The financial impact of Arya.AI and the payment license is not explicitly quantified but considered to be positive.

R&D Budget Trend

• The discussion suggests an increasing trend in R&D budget allocation, emphasizing the ongoing focus on innovation and development.

Margin Calculation Approach

• Aurionpro's margin calculation approach includes a consideration of various factors, including the project type and project complexity.

R&D and Shareholder Value

• Ashish Rai believes that investment in research and development is crucial for maximizing shareholder value, leading to long-term benefits.

Revenue Recovery

• The discussion suggests a positive outlook on recovering revenue streams, with a focus on expanding market reach and gaining new customers.

Margin Behavior

• Aurionpro does not anticipate any significant fluctuations or negative trends in margin behavior in the foreseeable future.

UK Market Focus

• The UK market for Aurionpro largely focuses on its enterprise AI solutions.

New Market Entry

• Aurionpro announced its entry into the Middle Eastern market through a partnership with a local company to expand its reach.

Indian Market Selectivity

• Aurionpro has been selective in choosing projects within the Indian market, prioritizing high-value projects and strategic partnerships.

Fast Growth Forecast

• Aurionpro forecasts that its enterprise AI solutions will grow quickly in the coming years.

Transit Technology Trend

• The discussion emphasizes a significant trend in transit technology towards automation and intelligent solutions in the upcoming years.

Company's Unique Position

• Aurionpro sees itself as uniquely positioned within the transit technology market due to its focus on AI-driven solutions and its experience in developing complex systems for various transportation sectors.

Haryana Government Project

• The company cites its collaboration with the Haryana government on a smart city project as an example of its successful work in India.

Slowdown Area

• Aurionpro expects a slowdown in the data center business due to the current market conditions and global economic uncertainties.

Design Services Capture

• Ashish Rai estimates that Aurionpro can capture approximately 30% of the work from design services.

Project Capacity Growth and Delivery Capacity

• Ashish Rai believes that project capacity growth is outpacing delivery capacity.

Contract Concerns

• Aurionpro's main concern regarding the contracts they take on is managing the challenges associated with delivering complex projects on time and budget.

Data Center Business Description

• Ashish Rai describes the data center business as currently in a "slowdown state."

Data Center Offerings Phase

• Aurionpro is in the early stages of developing and offering products in the data center space.

Data Center Product Launch

• The discussion mentions that Aurionpro is close to launching its "data center product."

Scaling Operations

• Ashish Rai emphasizes the importance of partnerships and strategic acquisitions for scaling Aurionpro's operations effectively.

Engagement with Data Center Market

• Aurionpro continues to engage with the data center market despite its current state for various reasons, primarily due to its long-term growth potential and the strategic importance of data infrastructure in the digital economy.

Explore the key financial highlights and insights from Aurionpro Solutions Limited's Q1 FY25 Earnings Conference Call. Discover the management's discussion on revenue growth, profitability, and business segments driving performance in the technology and banking sectors.