MUMBAI - Infibeam Avenues Ltd, a leading digital payments and e-commerce technology company in India, has reported robust financial results for the third quarter of the fiscal year 2024. The company's gross revenue soared to ₹9,120 million, with a Profit After Tax (PAT) of ₹421 million. This significant growth is primarily attributed to the festive season demand and the increased adoption of its payment gateway solution, CCAvenue, by merchants.
The company's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also saw a healthy rise, reaching ₹690 million. A notable driver of this growth has been a 75% year-over-year increase in Total Payment Volume (TPV), especially from the hospitality and travel sectors. This surge is linked to the phenomenon known as 'revenge tourism', where consumers are traveling more following the easing of COVID-19 restrictions.
In line with its growth trajectory, Infibeam Avenues has been investing in artificial intelligence through the establishment of 'Phronetic.AI'. The company is planning to further expand its operations in Ahmedabad to bolster its AI capabilities.
Strategically diversifying its portfolio, Infibeam Avenues has also made an equity acquisition in So Hum Bharat Digital Payments Private Limited, which is currently awaiting a license from the Reserve Bank of India (RBI). Additionally, the company has acquired a stake in Pirimid Fintech, signaling a broadening of its growth strategy beyond its core payment solutions.
With these developments, Infibeam Avenues maintains a positive financial outlook for the full fiscal year 2024. The company has set targets for gross revenue in the range of ₹30,000-33,000 million and PAT estimates between ₹1,300-1,500 million, indicating confidence in its strategic initiatives and market position.
InvestingPro Insights
Infibeam Avenues Ltd's recent financial results have painted a picture of a company on the rise, with a robust performance in the third quarter of FY 2024. For investors looking deeper into the company's prospects, InvestingPro provides valuable insights. According to InvestingPro Tips, analysts are anticipating sales growth in the current year for Infibeam, aligning with the company's own positive financial outlook. Furthermore, Infibeam is recognized as a prominent player in the Financial Services industry, which could be a testament to its strategic acquisitions and investments in AI and fintech.
InvestingPro Data highlights that the company has been profitable over the last twelve months and has seen a high return over the last year. This performance is likely a contributing factor to the company's aggressive targets for gross revenue and PAT in the full fiscal year 2024. It's also worth noting that Infibeam's cash flows can sufficiently cover interest payments, an important consideration for investors looking at the company's financial health.
For those interested in a deeper dive into Infibeam Avenues' potential, InvestingPro offers additional tips, including an analysis on the company's valuation metrics such as earnings multiples and P/E ratio relative to near-term earnings growth. To access these insights and more, consider subscribing to InvestingPro. The subscription is now on a special New Year sale with a discount of up to 50%. Use coupon code SFY24 to get an additional 10% off a 2-year InvestingPro+ subscription, or SFY241 to get an additional 10% off a 1-year InvestingPro+ subscription.
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