Infibeam Avenues, a fintech firm, saw its shares gain exponentially over the last six trading sessions, jumping in value from ₹25.60 apiece to today’s closing price of ₹37.80, rewarding its shareholders with a tremendous return of 48% within this brief period. This surge has propelled the company’s shares to a remarkable gain of 147.87% over the past six months.
The rally came after the release of the company’s Q3 FY24 earnings report on January 23, posting a strong set of numbers. The robust numbers significantly boosted investor confidence, triggering a sharp upward movement in the company’s shares.
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Infibeam Avenues is an Indian multinational financial technology company that offers integrated and scalable digital platforms consisting of digital payment solutions under the brand name CCAvenue and enterprise software solutions under the brand name BuildaBazaar.
The company is the only listed home-grown, bootstrapped, and profitable fintech conglomerate having a comprehensive fintech portfolio, according to the company website.
In Q3, the company achieved its highest-ever quarterly profit after tax (PAT) of ₹42.1 crore, reflecting a substantial 64% increase compared to the net profit of ₹25.7 crore recorded in the corresponding period last year. Additionally, the company reported its highest EBITDA of ₹69 crore, marking a year-on-year growth of 45%.
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The gross revenue jumped by 120% YoY in Q3, while the net revenue improved by 33% YoY, reaching ₹112.28 crore. The stellar performance, according to the company, was attributed to the synergy of the festive season and the growing adoption of the CCAvenue payment solution by merchants.
“The third quarter, being a festive period, witnessed a surge in financial transactions. The TPV rose by 75% YoY, with payment TPV increasing by 32% and platform TPV by 134% during the third quarter. The increased transactions (TPV) were predominantly driven by growth in the hospitality, travel, telecom, airline travel, and hotel sectors,” the company said in its Q3 earnings report.
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Infibeam Avenues added 2.28 lakh merchants during the quarter. The company attributes this growth to the growing relationship with the bank partners and the impact of the RBI licencing regime, which sets high standards for fintech players and creates significant entry barriers for new players.
Meanwhile, the company maintains its financial guidance for FY24, maintaining a range of ₹3,000–3,300 crore for gross revenue, ₹410–415 crore for net revenue, ₹230–235 crore for EBITDA, and ₹130–150 crore for profit after tax.
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Going forward, the sustained rise in spending within the travel and hospitality sector continues to be a key growth factor for Infibeam Avenues. The trend has led to a significant increase in transaction growth (TPV), with tourism-related expenditures playing a crucial role. This pattern is anticipated to persist, solidifying the company’s position for long-term growth.
Disclaimer: We advise investors to check with certified experts before taking any investment decisions.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
