Rationale

 The rating reaffirmation favourably factors in the healthy financial risk profile of Accelya Solutions India Limited (ASIL), its nonlinear business model, strong focus and established clientele in the airlines vertical, supported by a professional and experienced management team. ASIL's healthy financial risk profile is evident from its strong operating profitability, debt-free status and strong liquidity position. The company's strong focus on the airlines vertical has helped it gain domain expertise and differentiate itself in the market place. The ratings continue to remain constrained by the concentration of revenues on a few clients and in a single vertical (airlines), its modest scale of operations and its liberal dividend policy. Dependence upon a few clients has impacted the company's growth trajectory when it witnessed key client exits in the past. ASIL's total revenue from operations was impacted in FY20211 , with revenue in 9M FY2021 recording degrowth of 41.4% YoY. The revenue was impacted because of significant decline in airline passenger traffic amid the pandemic. ICRA expects recovery in revenue in FY2022 with easing of travel restrictions across the globe, while revenue is still expected to remain below pre-Covid levels. Additionally, the limited market for outsourcing in the passenger revenue accounting space also constrains revenue growth. The Stable outlook on the rating reflects ICRA's opinion that ASIL will continue to benefit from its track record of operations, established client base and healthy financial risk profile.