Digital payment solutions company Infibeam Avenues reported consolidated net profit at INR 25.9 Cr for the quarter ended December 2019 in the fiscal year 2020. According to regulatory filings, the company had reported a net profit of INR 30.9 Cr in the year-ago period.
“The revenues in the prior quarter ending December 31, 2018 and year ended March 31, 2019 include the revenue of non-core businesses, which is not reflected in the current quarter ending December 31, 2019,” the company said in a statement.
In the last fiscal year, the company focussed on the core businesses of digital payments and enterprise software platforms. The Ahmedabad-based company divested its non-core businesses including online marketplace and technology platform solutions for small and medium enterprises. However, the company will continue to offer technology platforms to large enterprise clients and governments.
“We will continue to invest and build cutting edge technology and innovate in digital software and payments that will improve the way merchants and customers trade and transact through digitization and democratization of Commerce,” said Vishal Mehta, managing director, Infibeam Avenues.
Commenting on the cap on MDR on debit cards ending in December 2019, the company said that this change has the potential to reduce the pricing pressure on its operating margins and profitability going forward.
“Standalone EBITDA increased by 89% to INR 1036 Mn and Consolidated EBITDA increased by 36%, to INR 1,676 Mn due to higher processing volumes and strong Operational performance. Standalone PAT improved by 280% to INR 312 Mn and Consolidated PAT increased by 58% to INR 807 Mn,” the company said in a statement.
Infibeam operates multiple businesses including CCAvenue, a payment gateway platform, government e-marketplace and BuildBazaar, BIll Avenue bill payments solution built on the Bharat Bill Payment System (BBPS) infrastructure, ResAvenue, a central hub for the distribution of hotel inventory and a data centre infrastructure or data-centre-as-a-service.
Infibeam was founded in 2007 by Sachin Dalal, Vishal Mehta and Neeru Sharma. The company now plans to enter into the card issuance business. Last year, it had invested in Go Payments, which offers prepaid cards to corporates and SMEs, for a 48% stake in the company.
Infibeam Avenues will make an additional investment of INR 7 Cr in the business to increase its stake in Go Payments from 48% to 52.38%, subsequently making it a subsidiary of the company.