Infibeam Avenues Q4 PAT Rises To INR 49.2 Cr

SUMMARY

Infibeam’s operating revenue increased over 11% YoY but declined 20% QoQ to INR 726.8 Cr in Q4 FY24

The company also noted challenges posed by the “dynamic and competitive environment"; its payment business revenue declined quarter-on-quarter (QoQ) to INR 669.8 Cr in Q4

Helped by AI boost, Infibeam has set a target of 18-35% growth in its PAT to INR 175 Cr to INR 200 Cr in FY25

Payments infrastructure company infibeam Avenues posted a 28% rise in its consolidated profit after tax (PAT) to INR 49.2 Cr in the March quarter (Q4) of the financial year 2023-24 (FY24) from INR 38.4 Cr reported during the previous year’s quarter.

However, excluding the notional impact arising from mark-to-market gain/loss from investment in listed security, the company’s PAT saw an 8% year-on-year (YoY) growth to INR 35.8 Cr in the reporting quarter.

Infibeam’s operating revenue increased over 11% to INR 726.8 Cr in Q4 FY24 from INR 652.7 Cr in the corresponding quarter of the previous year. 

Meanwhile, the company’s operating revenue declined over 20% from INR 912 Cr posted in the previous quarter – Q3 FY24.

Infibeam’s EBITDA grew 21% YoY to INR 60 Cr in Q4 FY24. The company said that total payment volume (TPV) jumped 53% YoY to touch INR 2.26 Lakh Cr.

Speaking on the earnings, Vishal Mehta, chairman and MD of Infibeam, said, “The company has demonstrated resilience and agility in navigating through the ever-evolving market landscape and was able to maintain its position as a frontrunner in the industry.”

However, the company also noted challenges posed by the “dynamic and competitive environment” in the ecosystem.

Its payment business revenue declined quarter-on-quarter (QoQ) to INR 669.8 Cr in Q4 from INR 858.2 Cr in Q3.

Meanwhile, Infibeam attributed its sustained growth to its flagship payment brand – CCAvenue. 

“In addition to its robust payment business, Infibeam’s platform segment has also demonstrated impressive resilience, posting 29% YoY increase. This growth is primarily fueled by strategic accounts with large enterprise clients, further solidifying Infibeam’s position as a leader in the digital commerce ecosystem,” the company said.

However, despite the ongoing utilisation of its ecommerce platform by the Government e-Marketplace (GeM), no income from GeM was reported in Q4 as Infibeam has no agreement on commercials with the client so far, it said.

Infibeam’s FY24 Performance

Infibeam said that it posted its highest ever EBITDA at INR 252.6 Cr in the fiscal year 2024, up 41% YoY. It also posted the highest ever PAT of INR 147.8 Cr in the year on the highest ever gross revenue of INR 3,171.1 Cr.

The company said that by the end of FY24, it had over 10 Mn merchant accounts while its transaction processing soared to INR 2.57 Lakh Cr in payment value, excluding Rupay debit cards and UPI payments. 

Besides, the company also said that it started leveraging AI in FY24 to boost all its businesses. The company launched its AI business vertical under the brand Phronetic.AI during the year.

Infibeam also established an AI-Hub at GIFT City.

“As the company took the strategic decision to embrace AI, it took other crucial decisions to take forward its digital payment business to the next level. Company further strengthened its international play for its payment business, as it realigned its international businesses and received regulatory approval from Kingdom of Saudi Arabia (KSA) and launched mobile-based QR Code payment solutions in the United Arab Emirate (UAE) market,” Infibeam said.

Overall, Infibeam’s expenses grew 9.6% YoY but declined 21.2% QoQ to INR 679.4 Cr in Q4 FY24.

The Outlook

Infibeam has set a target of 18-35% growth in its PAT to INR 175 Cr to INR 200 Cr in FY25. 

The company also aims to achieve a gross revenue of INR 3,900 to INR 4,200 Cr, registering a 23-32% YoY jump at the end of the current fiscal year.

“The company strongly believes that AI and international business will boost FY24-25 outlook,” Infibeam said.

Meanwhile, the company is also gearing up to venture into financial product offerings tailored specifically for merchants in an attempt to move within the domestic payment landscape. 

Under the umbrella of a new brand name, collectively referred to as Merchant Finance Offerings, the company aims to provide merchants with access to a range of financial products, including business loan products, insurance products, and wealth management products, it said.

“In the upcoming fiscal year, our strategic focus will be on expanding internationally, with a particular emphasis on the Middle East market. This will accelerate our growth trajectory in this region, our international subsidiary has announced a pre-IPO round of up to $25 Mn. This investment will fuel our expansion efforts and propel us towards capturing a significant market share,” said Vishwas Patel, joint MD of Infibeam.

Following the earnings announcement, its shares ended Thursday’s trading session 0.9% higher at INR 32.66 on the BSE.

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