| Long track record of operations along with experienced management
Promoted by Mr. Sourav Mukherjee and incorporated on May 2008, Netscribes Data and Insights Private Limited (NDIPL), erstwhile known as NS Oxymoron Advisors Private Limited, provides customer insights,offers services through its two verticals- Consulting comprising integrated marketing solutions, research and information and data and analytics and digital transformation comprising digital engagement analysis, competitive commerce solutions, automation and artificial intelligence, application and data engineering and analytics. The group has three delivery locations across India at Mumbai, Kolkata and Gurgaon and one in New York having customer coverage spanning over 90+ countries. On 6th September 2021, Netscribes Data & Insights Private Limited (NDIPL) (formerly NS Oxymoron Advisors Private Limited) a zero-revenue entity acquired 80.07 per cent stake at Rs. 175 crore in Netscribes (India) Private Limited (NIPL) from Helix Investments Company, Mauritius thereby becoming the holding company of NIPL. In December 2022, N S Oxymoron Advisors Private Limited and NIPL were merged by absorption of NS Oxymoron & Advisor Private Limited and was renamed as Netscribes Data and Insight Private Limited (NDIPL). This consolidation streamlined operations, eliminated redundancies and strengthened the balance sheet by merging revenue generating operations directly into the debt-issuing company. Further, in December-2024, NDIPL acquired 80% shareholding in Akira Consultancy Private Limited (ACPL), a Bangalore based data engineering and analytics firm, for Rs 17.75 crores and is expected to acquire the remaining shareholding in near to medium term. Going forward, Acuite believes that the long operational track record, extensive experience of the management, longstanding relationships with reputed clients, a diversified service portfolio, and broad geographical presence client base shall support the business risk profile of the group.
Steady scale of operations and profitability
The group reported a marginal decline in operating income by 3.07 per cent to Rs. 115.66 crore in FY2025 (Prov.) as against Rs. 119.32 crore in FY2024. Out of the total revenue of Rs. 115.66 crore, Rs. 110.17 crore relate to NDIPL and Rs. 5.35 crore relates to APCL. The group has reported a revenue of Rs. 28.42 crore and EBITDA of Rs. 6.14 crore inApr’25-June’25. The operating margin of the group declined to 25.54 per cent in FY2025 (Prov.) as compared to 26.84 per cent in FY2024. The PAT margin stood at 4.08 per cent in FY2025 (Prov.) as compared to (3.31) per cent in FY2024. The negative PAT margin in FY2024 is due to the interest on NCDs and the loss on modification of the debt. Acuite believes that the group’s ability to sustain its scale of operations while maintaining profitability will remain a key rating sensitivity.
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| Average financial risk profile
The financial risk profile of the group is average marked by average net worth base, high gearing and average debt protection metrics. The tangible net worth of the group increased to Rs. 34.39 crore as on March 31, 2025 (Prov.) from Rs. 28.02 crore as on March 31, 2024 due to accretion of profits to the reserves. High gearing is reflected at 2.85 times as on March 31, 2025 (Prov.), as against 3.80 times as on March 31, 2024. The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) improved but stood high at 3.48 times as on March 31, 2025 (Prov.), as against 4.70 times as on March 31, 2024. Moreover, the average debt protection metrics is marked by Interest Coverage Ratio of 2.46 times as on March 31, 2025 (Prov.), as against 1.27 times as on March 31, 2024; and Debt Service Coverage Ratio at 1.16 times as on March 31, 2025 (Prov.) as against 0.85 times as on March 31, 2024. Acuite believes that the financial risk profile of the group is likely to improve in the near to medium term on account of likely improvement in the scale of operations, timely repayment of maturing debt obligations and no debt funded capital expenditure
Moderately intensive working operations
The working capital management of the group has improved in FY2025 (Prov.) as reflected in the GCA days of 131 days as on 31st March 2025 (Prov.) as compared to 185 days on 31st March 2024. The GCA days stood at 131 days as on 31st March 2025 (Prov.) on the account of advance tax of Rs. 12.42 crore (Rs. 10.04 crore in FY2024). The debtor days improved to 68 days in FY2025 (Prov.) as against 88 days in FY2024. Further, the group has not availed any working capital limits and manages its operations through its internal accruals and cash and bank balances. Acuite believes that the working capital operations of the group may continue to remain moderate considering the nature of operation of the business.
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