Aurionpro Jul-24

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Questions and Answers

What position does Mr. Ashish Rai hold within the company?

Chief Financial Officer

Investor Relations Manager

Vice Chairman and CEO (correct)

Company Secretary

What is the percentage growth in revenue reported for Q1 FY25?

20%

30%

32% (correct)

25%

What will be the mode of participant lines during the conference call?

Interactive mode

Video conference mode

Listen-only mode (correct)

Open to discussion

What should participants press if they need assistance during the call?

<ul> <li>then 0</li> </ul> Signup and view all the answers

Which risk is associated with the forward-looking statements mentioned during the call?

Risks and uncertainties affecting actual results Signup and view all the answers

Who introduced the opening remarks during the earnings conference call?

Ms. Aashvi Shah Signup and view all the answers

What will happen after the opening remarks during the call?

A Q&A session Signup and view all the answers

Which segment does the management discuss during the call?

Major business segments Signup and view all the answers

What aspect of technology does Aurionpro believe creates most value?

Application layer Signup and view all the answers

In which sectors does Aurionpro aim to build its enterprise AI solutions?

Banking and insurance Signup and view all the answers

What does Aurionpro believe about calling API calls to LLMs?

It does not equate to true AI Signup and view all the answers

What kind of applications is Aurionpro developing for enterprise use?

Mission critical applications Signup and view all the answers

What does Aurionpro believe about the competition in Gen AI and foundation models?

The outcome is uncertain Signup and view all the answers

What is Aurionpro’s assessment of Arya.ai?

It specializes in banking and insurance use cases Signup and view all the answers

What strategy does Aurionpro intend to pursue in the global market?

To be a significant global player in enterprise AI for banking and insurance Signup and view all the answers

What type of experience does A S Software mainly have?

Nuclear software and blockchain Signup and view all the answers

What is the primary focus for A S Software team according to the discussion?

Developing a global product called Omnifin Signup and view all the answers

What has contributed to an increase in demand for transformation projects in lending?

High interest rate environment Signup and view all the answers

What is the perceived opportunity size for the data center market?

Tens of billions of dollars Signup and view all the answers

Which geographical focus is highlighted as a growth opportunity for the discussed technology?

Southeast Asia Signup and view all the answers

Which statement accurately reflects the perspective on technology spending in Asia?

Asia represents 8% to 10% of overall technology spending. Signup and view all the answers

What is the anticipated market outlook for AI in the coming years according to the discussion?

AI is considered a trillion-dollar opportunity over five to seven years. Signup and view all the answers

What is the significance of the current penetration level in Southeast Asia for the mentioned products?

It is at a substantial level, suggesting growth potential. Signup and view all the answers

What is considered a strategic approach for the team regarding product development?

To build the best possible product and be competitive. Signup and view all the answers

What is the primary focus for Aurionpro in the upcoming years according to the statements made?

To increase R&D budget and product development Signup and view all the answers

What does Ashish Rai indicate about the expectation of margin growth in the near term?

There will be no focus on margin expansion in the next few years. Signup and view all the answers

How are Arya.AI and the payment license positioned in terms of financial impact?

They are primarily investment-driven long-term growth drivers. Signup and view all the answers

What does the statement say about the R&D budget trend?

It has been consistently increasing every year. Signup and view all the answers

What is indicated about Aurionpro's approach to calculating margins?

There is a tendency to not fine-tune margins too closely. Signup and view all the answers

What does Ashish Rai imply about the relationship between R&D and shareholder value?

Higher R&D spending will potentially enhance shareholder value. Signup and view all the answers

Regarding revenue, what does the discussion suggest about recovering revenue streams?

They are not included in the order book. Signup and view all the answers

What is not expected from Aurionpro in terms of margin behavior?

Significant margin improvements in the near future. Signup and view all the answers

What is a primary focus for the company in the UK market?

Monetizing existing partnerships Signup and view all the answers

Which market did the company announce an entry into through a partner?

Australia Signup and view all the answers

What aspect of the Indian market has the company been selective about?

Exporting products Signup and view all the answers

What is expected to grow quite fast according to the company's forecast?

Transit solutions Signup and view all the answers

What is a significant trend expected in transit technology over the next several years?

Shift from closed loop to open loop systems Signup and view all the answers

What unique position does the company claim in the transit technology market?

Having the most integrated end-to-end offering Signup and view all the answers

What project with the Haryana government is cited as an example of the company's excitement in India?

Card issuance scheme Signup and view all the answers

In which area does the company expect to see a slowdown?

Other business segments Signup and view all the answers

What percentage of work does Ashish Rai estimate they can capture from design services?

Single digit percent Signup and view all the answers

How does the potential growth in project capacity relate to the delivery capacity according to Ashish Rai?

Growth potential is limited by delivery capacity. Signup and view all the answers

What is the main concern for Aurionpro Solutions Limited regarding the types of contracts they take on?

They aim to only take on projects they can reliably deliver. Signup and view all the answers

In their current state, how does Ashish Rai describe the data center business?

It operates like a services business with little intellectual property. Signup and view all the answers

What phase is Aurionpro Solutions Limited currently in regarding their offerings in the data center space?

Understanding the market through services before productizing. Signup and view all the answers

What type of product is Aurionpro Solutions Limited close to launching in the data center space?

An edge compute product. Signup and view all the answers

What does Ashish Rai suggest is necessary for scaling their operations effectively?

Reliably understanding project delivery limits. Signup and view all the answers

Why does Aurionpro Solutions Limited engage with the data center market despite its current state?

Because they have strong interest and see demand in the space. Signup and view all the answers

Study Notes

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.

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Description

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.