Infibeam Avenues gains as Q1 PAT climbs 59% YoY to Rs 50 cr

Infibeam Avenues rallied 5.84% to Rs 32.79 after the company's consolidated net profit surged 59.49% to Rs 50.4 crore in Q1 FY25 as compared with Rs 31.6 crore in Q1 FY24.

In the quarter ending 30 June 2024, the company reported a 1.40% YoY increase in gross revenue to Rs 752.8 crore. Additionally, net revenue jumped by 19.93% to Rs 118.5 crore in June 2024 quarter as compared to Rs 98.8 crore recorded in the corresponding quarter of the previous year.

Profit before tax zoomed to Rs 83.36 crore in first quarter of FY25 as against 35.16 crore reported in same quarter last year.

For Q1, EBITDA jumped 25.08% to Rs 69.8 crore as against Rs 55.8 crore posted in corresponding quarter previous fiscal. EBITDA margin improved to 59% in Q1 FY25 as against 57% in Q1 FY24.

During the quarter, TPV surged 67% to Rs 19,769.1 crore, largely due to rising use of digital payments and also surge in companys merchant base due to increase use of digital POS product CCAvenue TapPay amongst merchants. CCAvenues deep integrations across thousands of third-party merchant systems, fostered continued growth and success.

In the Jun24 quarter, the company observed an increase in the take rate, rising from 8.4 basis points (bps) in Q1 FY24 to 11.2 bps in Q1 FY25. This improvement is attributed to the disciplined execution, optimization and reimagining digital payments from teams across Infibeam.

In Q1FY25, there has been substantial addition in merchants registering at a daily average of more than 2,550 merchant accounts to companys total merchant base.

Vishwas Patel, joint managing director of Infibeam Avenues said, We have worked hard in optimizing every layer of our payment infrastructure stack to ensure increase in our net take rate to double digits and pleased to report that our net take rate has increased to 11.2 bps in Q1FY25. Our international business especially in UAE has also picked up scale processing AED 1.5bn per month with double digit take rates. We are pleased to report that our subsidiary in Saudi has been granted a Payment Technical Service Provider (PTSP) certification from the Saudi Central Bank (formerly Saudi Arabian Monetary Authority, SAMA).

This certification allows Infibeam's flagship payment platform, CCAvenue, to operate as a payment processor in the country. This makes Infibeam the first Indian fintech company to achieve such a milestone in Saudi Arabia, positioning CCAvenue as a major player in the digital payments market in Saudi Arabia.

Vishal Mehta, chairman and managing director, Infibeam Avenues, said, "We have a good beginning for the financial year FY25 as we have registered good growth in the first quarter. We continue to scale high with our payments and platform business vertical. With addition of emerging technologies and investment in innovation, especially in Artificial Intelligence, we expect to further accelerate our companys growth in coming quarters in this fiscal year. Our new business vertical in AI will play a crucial role in recalibrating the growth trajectory of the company and expect to deliver value to all stakeholders.

Meanwhile, the board has approved an investment to acquire a 54% stake in Rediff.com. This acquisition will be financed through internal accruals, and following the investment, Rediff.com will become a subsidiary of Infibeam Avenues. This strategic move represents the company's expansion into the cloud infrastructure and financial aggregator sectors, where it plans to provide financial services and products to both merchants and consumers. The cost of acquisition will not be exceeding Rs 25 crore and it will be completed within 90 days.

Infibeam Avenues is one of the leading global financial technology (fintech) company offering comprehensive digital payment solutions and enterprise software platforms to businesses and governments across industry verticals. The company's payment infrastructure solution includes acquiring and issuing solutions and offering infrastructure for banks.

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