| Experienced management
SEIL is a professionally managed group led by experienced management having rich experience in various fields such as commodity trading, financial markets and emerging technologies. The key management team comprises of Mr. Prakash Rao (CFO), who brings over 24 years of experience in the agri-commodity trading sector and Mr. S. Ravi, with more than 34 years of experience and a track record of serving on the boards of several reputed companies. Therefore, the experience of the management has enabled the group to venture into trading of commodities like de-oiled rice bran, exotic fruits, etc. and also diversify towards IT business. Going forward, the focus of the group is to establish a tech enabled commodity trading platform in Hong Kong, launch planned by the end of the current financial year.
Diversified revenue streams
The group is engaged into diverse business with SEIL primarily being engaged in commodity trading and its subsidiaries (acquired in FY23 & FY24) being engaged in IT service and digital advertising business. Therefore, while the standalone commodity business of SEIL saw a downtrend over the years (Rs. 101.81 Cr. in FY25, Rs. 102.69 Cr. in FY24, Rs. 142.14 Cr. in FY23), this diversification led to an increase in the group revenues to Rs 157.05 Cr. in FY25 post a downtrend in the FY24 reported revenues of Rs. 128.21 Cr. as against Rs. 144.54 Cr. in FY23. Further, while margins of the group stood low at 1.87 percent in FY23 owing to bad debt write offs and major focus on commodity business, the same started to improve from FY24 at 8.57 percent and 8.68 percent in FY25 with onset of IT business. However, the proposed plan of SEIL to establish a tech enabled commodity trading platform shall remain a key rating monitorable.
Healthy capital structure
The capital structure of the group stood healthy marked by strong net worth of Rs. 131.40 Cr. as on March 31, 2025 as against Rs. 96.81 Cr. as on March 31, 2024 (excluding intangible assets and goodwill). The increase in net worth is on account of accretion of profits to reserves and funds raised via issuance of share warrants of ~Rs. 40.15 Cr. in FY25. Moreover, the group is almost debt free with minimal outstanding debt of Rs. 1.58 Cr. in FY25 (Rs.0.89 Cr. in FY24) leading to healthy TOL/TNW of 0.29 times in FY25 (0.17 times in FY24).
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| Intensive working capital operations
The working capital operations of the group are intensive marked by gross current assets (GCA) of 188 days in FY25 (174 days in FY24). These are majorly driven by the receivables and other current assets. The debtor days stood at 121 days in FY25 (115 days in FY24) owing to higher credit period offered to the customers. Generally, the group receives average credit period of 30 days, however, creditor days stood high at 63 days in FY25 (41 days in FY24).
Acuité expects the working capital operations of the group to remain intensive over the medium term on account of extended credit offered to the customers.
Significant investments in other business ventures
The group on a consolidated basis has invested Rs. 56.91 Cr. (~43 percent of FY25 net worth) in other fintech and infra companies namely Billmart Financial Private Limited, Nashville Infra Services Limited and String Metaverse Limited. While these are strategic investments by the group in the IT space, no returns have been generated from these investments till date and any further significant investments to such ventures may constrain the group’s core operations, hence, remain a key rating sensitivity.
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