Infibeam Avenues’ revenue from operations increased by 93% YoY, to INR 418.3 Cr in Q1 FY23.
On the expense front, Infibeam saw a 90 percent YoY increase to INR 390.8 Cr in Q1 FY23.
The growing market for digital presents an opportunity to see strong expansion in the coming quarters, the company stated.
Digital payment solutions company Infibeam Avenues reported a 69 percent year-on year (YoY) increase in its consolidated profits after taxes (PAT) at INR 23 crore in the initial quarter of fiscal years 2022-2023 (FY23) due to the impact of an upbeat trend in shifting towards digital payment.
The company posted a PAT of INR 13.4 Cr during the quarter ended June of FY22.
However, on a quarterly-on-quarter (QoQ) basis Infibeam’s PAT recorded a decrease of 20% from the INR 28.2 Cr recorded in the Quarter 4 of FY22.
On the other hand the company’s operating revenues increased in both a QoQ basis as also a on a YoY basis.
The company’s operating revenue grew 93% YoY , to an INR 418.3 Cr in the first quarter of FY23, up from 216.4 Cr recorded in the previous fiscal year. The major portion of the sales being delivered by its payment business.
Infibeam’s Payment business made the company with INR 378.4 Crore in revenues during the last quarter, as against 184.7 Cr in Q1 FY22.
Based on a QoQ basis operating revenue increased by 13 percent over INR 369.5 Cr for Q4 FY22.
As according to our data from within, there was an huge increase in digital payments took place across all industries, Infibeam MD Vishal Mehta stated. High consumer demand for products and services from consumers has driven the need for business credit by merchants.
The company recorded an increase of 77% in its business of merchant lending – Express Settlement, Mehta said.
In the meantime, transaction processed value (TPV) was up 72% year-on-year to INR 87.218 Cr in Q1 FY23, up from INR 50,651 crore in the prior quarter.
On the expense front, Infibeam saw a 90 percent increase in its the total cost of expenses to 390.8 Cr. 390.8 Cr in the first quarter of FY23. operating expenses being the main factor.
Infibeam’s operating costs jumped 109% year-on-year to the figure of INR 344.8 Cr during the June quarter , up from the INR 164.2 Cr for Q1 FY22. The cost of employee benefits were also up to INR 23 Cr during the same period, up from 19.1 Cr during the previous quarter.
The shares of Infibeam ended the day 7 percent higher, with INR 15.96 on the BSE on Thursday (August 4).
In the meantime, Infibeam is expecting a good performance in the coming quarters, too.
We launched our revolutionary products CCAvenue Mobile app, a multi-channel payment platform that comes with a built-in pay and tap feature that turns any NFC-capable Android phone into an POS terminal. With these changes and a significant rise in our total processed value of INR 87.218 Crore, we’re in the midst of good quarters Mehta said.
Established in 2007, Infibeam offers a range of digital payment solutions and software to companies and government agencies across all industries.
Presently, 6.4 Mn merchants are making use of the platform offered by Infibeam, with the growth in merchant base nearly doubling since the previous year, to an average of 8,000 transactions per day during Q1 FY23, the company said.
The number of merchants is expected to expand significantly as a result of the widespread adoption of digitalisation It added.
Point of Sale (POS) and e-commerce will play a significant role in digital payments’ value during the current financial. “This is the time we’re making our entry into the offline payments market through our SoftPoS with tap-to pay feature that could change the game, Infibeam Executive Director Vishwas Patel told.
According to a new report that India’s digital payment market is nearing an inflection point, and is expected to triple to $10 trillion in 2026, up from its current size of $3 trillion.