Don’t miss action in this penny stock as net profit jumps 46 per cent; company witnesses record merchant additions in Q3!

CCAvenue’s India Payments alone recorded 385 per cent YoY growth in total number of merchants.

India’s first listed software platforms and payments infrastructure company, Infibeam Avenues Limited has announced its financial result for quarter ended December 31, 2022.   

Consolidated profit after tax jumped 46 per cent on YoY basis to Rs 35 crore and EBITDA grew by 26 per cent YoY at Rs 48 crore. Q3 being seasonally strong quarter also led to record 1.1 million merchant additions; number of merchants stood at 8.4 million up 72 per cent YoY. CCAvenue’s India Payments alone recorded 385 per cent YoY growth in total number of merchants. Retail sector was the largest merchant contributor followed by Grocery, Travel and Ticketing, Education, IT, etc. Also, very few payment companies are currently able to onboard new merchants, Infibeam Avenues being one of them.   

Quarterly Gross Transaction Processing Value (TPV) stood at Rs 1 lakh crore up 27 per cent YoY.  

The Company became the first payment gateway to process Digital Rupee transaction for online retail payments. Go Payments subsidiary turns EBITDA breakeven; company increases stake further. It has received in-principle approval to operate as Payment Aggregator and perpetual Bill Payments license from RBI.  

“The Company had a solid quarterly performance attributable to all-round business development. Our focus on generating higher profitability per transaction in our payments business is starting to show results. We are constantly innovating on our offerings and building comprehensive vertical specific technology that helps merchants in each industry to overcome their operational challenges. This has given us a lead to be their preferred payments partner giving us a sustainable business that will generate greater long-term value for our business and for our shareholders,” said Mr. Vishal Mehta, Managing Director, Infibeam Avenues Ltd.  

The company’s focus on generating higher profitability per transaction to improve unit economics is starting to produce results. Payments net take rate increased to 8.9 basis points (bps), up 63 per cent YoY. The company is experiencing quarter on quarter increasing trend in NTR as sectors impacted in the pandemic and overall discretionary spends are now increasing. Also, change in payment mix from credit options like credit cards and EMIs to debit options like net banking and debit cards led to favourable net take rate. Payments through debit options are more profitable for the company and the company is a pioneer in offering a large portfolio of debit options to the merchants.  

The stock made a high of Rs 17.25 on NSE and it ended the day with gains of 3.12 per cent at Rs 16.55.