Infibeam Avenues 3Q FY2024 Earnings Call: Summary

INFIBEAM AVENUES 3Q FY2024 EARNINGS CALL: SUMMARY

1. Financial Performance:

  • Gross revenue for 3Q FY2024 reached Rs. 1.2 billion, a historic feat for the company.
  • Digital payments business through CCAvenue led the revenue increase.
  • Standalone business constitutes 94% of consolidated gross revenue, with strong operating and profit margins.
  • Consolidated EBITDA margins at 61.2%, profit margins at 37.3%.

2. India Payments Business:

  • India payments business added almost a billion rupees in gross revenue in a single quarter.
  • CCAvenue added over 200,000 merchants, averaging 2,500 merchants daily.
  • India payments transaction processing volume rose to Rs. 663 billion, growing at 34% YoY.
  • Net revenue for India payments business grew 34% YoY, crossing Rs. 500 million for the first time.

3. International Business:

  • Focus on growing international payments business, particularly in UAE (Amrit Kaal).
  • Plans to scale international business further in the coming weeks to months.

4. GeM Contract Update:

  • Infibeam Avenues continues to use the GeM platform, with discussions on intellectual property and commercial terms ongoing.
  • Expects resolution within the quarter and will update stakeholders accordingly.

5. Artificial Intelligence Initiatives:

  • Significant strides in building artificial intelligence capabilities for both payments and the platform business.
  • Launched India’s first AI hub, Phronetic.AI, at GIFT City Gandhinagar.
  • Signed Rs. 20 billion MoU with the Gujarat government for developing the AI hub.

6. Financial Highlights by CFO Sunil Bhagat:

  • Gross revenue crossed US$100 million in the quarter, growing at 120% YoY.
  • India payments gross revenue grew at 147% YoY.
  • Net take rate stable at 8.5 basis points. Expecting it to increase going forward.
  • Nine-month consolidated financial performance showed substantial growth across TPV, gross revenue, net revenue, EBITDA, and PAT. The company is on its way to post its best annual performance in FY24.

7. Future Outlook and Strategies:

  • Focus on profitable growth rather than growth at any cost.
  • Strategies include continuous addition of merchants, TapPay solutions, and international expansion.
  • Strong performance in UAE, aiming to grow from 7,000 to 70,000 merchants in the next 12-24 months.
  • Aspires to achieve double-digit net take rate in the India business.

8. Other Highlights:

  • Investments in Pirimid Fintech for capital market software and lending frameworks.
  • Exploring opportunities in real-time settlements, AI, and lending frameworks.
  • Strong emphasis on the potential of AI to enhance productivity, security, and customer experience.

The company expresses confidence in sustained profitable growth and hints at further announcements in the coming weeks regarding their AI initiatives and expansion plans.

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