Infibeam Avenues' Results Exceed Estimates on Digital Payments Strength
Vishwas Patel, Joint Managing Director of Infibeam Avenues Ltd.
FinTech BizNews Service
Mumbai, May 16, 2024: India’s first listed AI- powered tech and fintech company, Infibeam Avenues Limited, (BSE: 539807; NSE: INFIBEAM), has today announced its financial results for the fourth quarter and year ending March 31, 2024.
Consolidated Financial Highlights (INR million)
Particulars | Q4 FY24 | Q4 FY23 | Y-o-Y | FY24 | FY23 | YoY |
TPV 1 | 22,65,839 | 14,77,250 | 53% | 70,43,439 | 44,46,810 | 58% |
Gross Revenue | 7,268* | 6,527 | 11% | 31,711* | 19,623 | 62% |
Net Revenue 2 | 1,061 | 916 | 16% | 4,286 | 3,284 | 31% |
EBITDA 3 | 600 | 496 | 21% | 2,526 | 1,796 | 41% |
EBITDA margin 4 | 57% | 54% | - | 59% | 55% | - |
Profit After Tax (PAT) 3 | 358 | 331 | 8% | 1,478 | 946 | 56% |
PAT margin 4 | 34% | 36% | - | 34% | 29% | - |
1 Includes i) Payments TPV [CCAvenue India and International + BillAvenue + Go Payments] + ii) GeM platform TPV.
2 Net Revenue = Gross Revenue – Direct Operating Expenses (predominantly payment processing revenue collected on behalf of ecosystem partners)
3 Excluding the notional impact arising from mark-to-market gain / (loss) from investment in listed security [this has no impact on cash flows]
4 as percentage of Net Revenue
‘* Includes GeM revenue recorded only till Q3FY24.
Consolidated Financial Performance Review:
Infibeam Avenues Ltd has reported robust consolidated gross revenue of INR 7268 million, accompanied by a Profit After Tax (PAT) of INR 358 million in the fourth quarter of FY24. The Q4 FY24 gross revenue witnessed a significant increase of 11%, and Q4 PAT saw a sizeable growth of 8% compared to the corresponding quarter of the previous financial year. The EBITDA also exhibited noteworthy growth of 21% Year-over-Year (YoY) to INR 600 million. The TPV rose by 53% YoY, reaching INR 2,265.84 billion, with payment TPV increasing to INR 758.12 billion, during the fourth quarter.
In Q4, the company also witnessed increased in take rate from 8.5 bps in the beginning of the year in Q1FY24 to 9.2 bps in Q4FY24. This increase in take rate is a results of discipline, execution, optimization, and reimagining digital payments from teams across Infibeam.
"Our CCAvenue payments business stands tall on a robust foundation meticulously crafted to propel expansion and set us apart from competitors. A pivotal aspect of our overarching growth strategy revolves around enhancing merchant account engagement. We anticipate this will keep on fueling an upsurge in payment transactions, total payment volume, and net revenue,” said Mr. Vishwas Patel, Joint Managing Director of Infibeam Avenues Ltd.
The continuous expansion of our merchant base has significantly bolstered our achievements, culminating in an impressive total 10M+ merchant accounts by the end of the fiscal year. Additionally, our transaction processing soared in 2024, handling a remarkable INR 2.57 lakh crores in payment value, excluding Rupay debit cards and UPI payments. This notable growth underscores our unwavering commitment to facilitating seamless transactions and fostering financial prosperity for our valued merchants.
"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,” said Mr Vishal Mehta, Chairman and Managing Director, Infibeam Avenues Ltd adding further that despite facing challenges posed by the dynamic and competitive environment, the company has exceeded expectations and remains committed to delivering value to its stakeholders.
Infibeam's sustained growth can be attributed to several factors, with a key driver being its flagship payment brand – CCAvenue. Renowned for offering the widest array of payment options in the industry, CCAvenue’s deep integrations across thousands of third-party merchant systems, fostered continued growth and success.
In addition to its robust payment business, Infibeam's platform segment has also demonstrated impressive resilience, posting 29% year-over-year 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. It’s noteworthy to mention that despite the ongoing utilization of our ecommerce platform by the Government e-Marketplace (GeM), no income from GeM has been reported in the fourth quarter (Q4), as we have no agreement on commercials with client to date.
Infibeam Avenues Ltd's FY 2023-24 marks a pivotal year in its journey. After years of development and investment in digital payment and platforms business, now the company has embarked on a new path, harnessing the power of Artificial Intelligence (AI) to elevate businesses worldwide. In FY24, company launched its AI business vertical under the brand – Phronetic.AI. The year FY24 witnessed establishment of an AI-Hub at GIFT City, appointment of a CEO for the AI business and launch of THEIA, a visual AI framework/platform.
As the company took the strategic decision to embrace Artificial Intelligence (AI), it took other crucial decisions to take forward its digital payment business to the next level. Company further strengthen 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.
"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 USD 25 million. This investment will fuel our expansion efforts and propel us towards capturing a significant market share." stated Mr. Vishwas Patel, Joint Managing Director of Infibeam Avenues Ltd.
Mr. Patel further highlighted the remarkable progress achieved in the Middle East, with all metrics doubling year-over-year as company introduced express settlement to merchants, rolled out CCAvenue TapPay, and went aggressively with its international expansion strategy across the Middle East region. "The digital boom in the Middle East presents us with tremendous potential for growth," Mr. Patel pointed out.
In a strategic move within the domestic payment landscape, the company is gearing up to venture into financial product offerings tailored specifically for merchants. Under the umbrella of a new brand name, collectively referred to as our 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.
This forward-thinking initiative is poised to unlock new avenues for long-term profitable growth. By diversifying its offerings to cater to the financial needs of merchants, the company is not only expanding its market reach but also solidifying its position as a trusted partner in the business ecosystem.
Major Achievement: Financial Guideline for FY24 achieved
Infibeam Avenues Ltd is thrilled to announce that the full year FY24 results exceeds annual estimates on payment business’s strength. It has exceeded at higher end of the annual target on both Net Revenue and EBITDA.
At the start of the year, the company had set gross revenue target of INR 30,000-33,000 million and Net revenue of INR 4,100-4,150 million respectively. The company achieved the targets by closing the year recording Gross Revenue of INR 31,711 million and Net Revenue at INR 4,286 million, which is at the high end of the estimate.
Similarly, both EBITDA and PAT also reached and exceeded the high end of our guidance. The company succeeded in closing the year with higher EBITDA of INR 2,526 million compared to our target of INR 2,300-2,350 million and PAT came in at INR 1,478 million, versus our target estimate of INR 1,300-1,500 million.
Infibeam Avenues Ltd also announces its FY24-25’s Financial Guideline. The company strongly believes that Artificial Intelligence (AI) and international business will boost FY24-25 outlook.
Declaration of Financial Guideline for FY24-25: Company expect to achieve the following financial performance for the financial year 2024-25.
Particulars | Amount (in INR million) | YoY growth (in %) |
Gross Revenue | 39,000 – 42,000 | 23% - 32% |
Net Revenue | 4,500 – 5,000 | 5% – 17% |
EBITDA | 2,750 – 3,000 | 9% – 19% |
Profit After Tax | 1,750 – 2,000 | 18% – 35% |
Final dividend proposed:
The company has proposed final dividend of 5% for the Financial Year 2023-24, subject to shareholders’ approval.
