E-commerce and web services company Infibeam posted a net profit of Rs 30.83 crore for the quarter ended December 31, 2017 (Q3FY18), an increase of 43.06% from Rs 21.55 crore in the preceding quarter. On a year-on-year (YoY) basis, net profit was up 146.24% from Rs 12.52 crore.
The company said that the growth in net profit was primarily driven by the web services segment, led by increased transaction volume and digital services growth. Note that in Q2FY18, the company had said that it would tweak its business model and move to a subscription and transaction-based model, where the earnings from its payments arm CCAvenue would be added.
Revenue from operations grew 5.9% to Rs 213.5 crore from Rs 201.6 crore in the preceding quarter, and grew 107.8% from Rs 102.7 crore in the corresponding quarter last year.
Infibeam’s services segment includes BuildaBazaar platform which provides cloud-based solutions for merchants. BuildaBazaar earns by charging a set-up cost to merchants, as well as through monthly fee and a per-transaction commission.
- Their merchant base stood at 88,993 merchants, up 35% from the same quarter last year.
- The segment posted revenues of Rs 141.5 crore, growing 15.7% quarter-on-quarter (QoQ) from Rs 122.3 crore in Q2FY18, and 252% year-on-year (YoY) from Rs 40.20 crore in Q3FY17.
- EBITDA margin stood at 45%.
- Profit for the segment stood at Rs 56.64 crore, up 40.65% QoQ from Rs 40.3 crore, and up 164.8% YoY from Rs 21.4 crore.
The segment accounted for 66% of the company’s total revenue in this quarter, up from 39% in Q3FY17. The company also mentioned that transaction led services accounted for majority of the services revenue. Managing director of Infibeam, Vishal Mehta said:
The transaction-based revenue model that contributes to services revenue is a scalable model, which is helping the company earn on every transaction executed on the platform. This is an increasing function of the growth in digital transactions. We will focus on growing transaction services domestically and internationally to benefit from the growing trend of ecommerce.
At the end of Q3FY18, 20 states and union territories have signed memorandum of understanding (MoUs) with the government on the Infibeam powered Government e-marketplace (GeM). The e-commerce platform (both app and web platform) for Adani Wilmar also went live in this quarter. It is currently being piloted in Ahmedabad and Gandhinagar in Gujarat.
Payments and transactions
In the nine-month period ending December 2017, the company said that CCAvenue processed volumes worth around Rs 14,499 crore. In Q2FY18, CCAvenue processed transactions worth Rs 5,414 crore. Infibeam said that the number of transactions processed on the web services platform in Q3FY18 was 23.5 million, which slightly below the 26.6 million transactions processed in the previous quarter.
In this quarter, Avenues India (CCAvenue) launched an inter-operable digital bill payments platform called BillAvenue. It is built over the Bharat Bill Payment System (BBPS) infrastructure. Currently, it offers payments for utility services like gas, water, electricity, mobile postpaid bill, DTH and broadband. The company said that other utility payments will be included as well, but didn’t specify a date.
In Q1FY18, the company had said that it will invest Rs 37.5 crore in the e-commerce segment (specifically e-commerce logistics) across FY18 to expand to 75 cities in the country.
- The online shopping business posted revenues Rs 72.02 crore, a decline of 9.25% from Rs 79.36 in the previous quarter. However, it was up 15.2% from Rs 62.51 crore in Q3FY17.
- The segment posted a loss of Rs 8.12 crore, significantly higher than the Rs 93 lakh loss posted in the previous quarter, and the Rs 2.65 crore loss posted in Q3FY17.
- The company had 8.09 million active customers at the end of Q3FY18.