Amid A Revenue Dip, Infibeam Avenues’ Q3 PAT Tanks 11% QoQ To INR 35.3 Cr

Payments solutions startup Infibeam Avenues’ consolidated profit after tax (PAT) plummeted more than 11% quarter-on-quarter (QoQ) to INR 35.3 Cr in the third quarter (Q3) of the financial year 2022-23 (FY23), down from INR 40 Cr in Q2 FY23. The company’s bottom line took a hit due a 17% QoQ fall in its revenue to INR 42.8 Cr in Q3 FY23. 

The startup had reported a net profit INR 24.1 Cr in the same quarter last fiscal. In the nine-month period ended December 2022, its PAT rose 76% YoY to INR 97.8 Cr.

Income from operations declined nearly 13% sequentially to INR 414.7 Cr in Q3 FY23, compared to INR 476.6.Cr in Q2 FY23. On a year-on-year basis, income from operations rose marginally by more than 4% from INR 391 Cr.

During the quarter under review, total income fell nearly 16% QoQ, while it was up 7% YoY to INR 428 Cr. 

Total expenses grew nearly 3% YoY to INR 383.6 Cr in Q3 FY23, up from INR 372.8 Cr in the year-ago quarter. Of these, operating expenses comprised a major chunk of expenditure at INR 330 Cr, while employee benefit expenses stood at INR 26.6 Cr. 

Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) improved 26% YoY to INR 48 Cr.

“The company had a solid quarterly performance attributable to all-round business development. Our focus on generating higher profitability per transaction in our payments business is starting to show results. We are constantly innovating on our offerings and building comprehensive vertical specific technology that helps merchants in each industry to overcome their operational challenges,” said Infibeam Avenues’ managing director Vishal Mehta.

The company’s executive director Vishwas Patel said, “We have simplified processes and strong compliances in place to onboard new merchants and activate them instantly. High merchant acquisition will build a strong pipeline to up-sell and cross-sell while also giving us a lead in processing eRupee transactions.”

Operational Metrics Give Heft

The startup’s consolidated total payment volume (TPV) surged 27% YoY to INR 95,604 Cr in Q3 FY23, while total payments net take rate (NTR) zoomed 62% on a yearly basis to 8.9 basis points (bps).

In a statement, the company said that it was witnessing a QoQ growth in NTR, largely on the back of increased discretionary spending and improvements in the sectors affected by Covid. The shift in payment mix from credit to debit options also drove the favourable net take rate. 

Infibeam Avenues added 11 Lakh merchants during the quarter, pushing the total to more than 8.4 Mn. 

With regards to its bill payments vertical, the startup saw its TPV surge to INR 4,000 Cr, while the market share in the biller segment stood at 90%. The company partnered with 3,500+ hotels in India and UAE, and processed daily payments for 3,900 room nights on an average.

The startup is targeting a TPV run-rate of INR 7-7.5 Lakh Cr by FY25.

Shoring Up Stake 

In its financial statement, the company added that its subsidiary Go Payments has turned EBITDA breakeven. 

Earlier in the day, Infibeam Avenues announced that it was investing INR 16 Cr to increase its stake by another 2.42% in Instant Global Paytech, the parent company of Go Payments. With this, Infibeam Avenues’ stake in Go Payments now stands at 54.8%.

“… With this investment, Go Payments plans to increase its reach across the nook and corner of India. The investment in Go Payments will allow the company to scale faster, giving Infibeam a higher Return on Investment (ROI), also benefiting Infibeam’s shareholders,” Mehta said.

With a headcount of 200 employees and 1 Lakh agents, Go Payments is a fintech startup that allows customers to access services such as domestic remittance services, bill payments, travel booking and insurance services through its brick-and-mortar stores spread across the country.

Shares of Infibeam Avenues closed 2.8% up at INR 16.50 on the BSE on Monday (February 6).