National E-Repository Limited (NeRL) Unlisted Shares
About National E-Repository Limited (NeRL) Unlisted Shares
National E-Repository Limited (NeRL), incorporated on February 10, 2017, is a pivotal institution in India’s commodities ecosystem. It facilitates digital management of Negotiable Warehouse Receipts (eNWRs), enhancing transparency, efficiency, and accessibility in commodity trading. By enabling farmers, traders, and financial institutions to transact using electronic receipts, NeRL reduces physical dependence and brings in technological innovation to streamline operations in the agri-commodities market.
Business Division
Core Offering:
NeRL functions as a commodity repository, operating a secure digital platform to issue, store, and manage eNWRs. These are legal documents proving commodity ownership, enabling farmers and traders to sell or pledge goods digitally without transporting physical inventory.
Key Functions:
- Issuance & Conversion: Physical warehouse receipts are converted into eNWRs through WDRA-registered warehouses.
- Trading & Settlement: Facilitates online commodity trading on platforms like NCDEX with seamless ownership transfer.
- Pledging: Allows users to obtain loans by pledging eNWRs as collateral with partner banks.
Financial Performance Summary (in 7 Points – Pwrite Format)
- Revenue grew from ₹7 Cr in FY23 to ₹9 Cr in FY24, but still lower than ₹10 Cr in FY22.
- EBITDA remained negative in FY24 at ₹-5 Cr, reflecting high operational costs.
- Employee costs increased by ₹2 Cr YoY in FY24, indicating growing team or rising compensation.
- Depreciation dropped from ₹6 Cr in FY22 to ₹4 Cr in FY24, hinting at lower asset base.
- Net loss (PAT) stood at ₹-5 Cr in FY24, unchanged from FY23, with EPS at ₹-0.62.
- Total assets declined steadily from ₹72 Cr in FY22 to ₹62 Cr in FY24.
- Reserves remained negative, reflecting continued losses and weak retained earnings position.
Pros
- Digital Advantage: Promotes paperless trading and efficient warehousing through eNWR.
- Empowers Farmers: Enables loan access and better market timing for produce sales.
- Regulatory Support: Operates under WDRA, ensuring credibility and policy alignment.
Cons
- Continual Losses: Financials indicate consistent net losses and negative margins.
- High Dependence on Adoption: Relies on farmers, traders, and banks embracing digital solutions.
- Operational Risks: Dependency on warehouse partners and IT infrastructure can impact reliability.
