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Infibeam posts net loss of Rs 13.9 crore in Q1 FY19

Infibeam Avenues Limited (previously Infibeam Incorporation Limited) posted a net loss of Rs 13.9 crore in the quarter ending June (Q1 FY19). This was down a staggering 210% from the Rs 12.7 crore net profit it reported in the same quarter last year. The company made a net loss of Rs 2.2 crore in the preceding quarter Q4FY18. The company said that the loss was primarily due to a 'onetime charge of impairment on investments (most likely on investments Vavian and Unicommerce), provisions (this is unclear), and zero merchant charges on debit card transactions up to Rs 2,000 per government mandate where reimbursement amount is not confirmed.' In May, the company acquired Vavian International Ltd, a Dubai-based digital payment processing company for around $1.2 million. In the same month, it also acquired Unicommerce, a “cloud-based inventory management” company. A sharp increase in payment gateway charges at Rs 75 crores also dented the company’s bottom line. It grew a massive 48% from the preceding quarter and 82% from the corresponding quarter last year. As a result, the company’s overall expenses grew 56% on year to Rs 106.6 crores. The firm’s revenue, however, only grew 27% on year to Rs 91.3 crore in the quarter ending June. This was on the back of a significant growth in transactions in both web services and payment solutions segments. Infibeam said that the value of transactions it processed grew 128% YoY to Rs 10,245 crore, and the number of successful transactions processed stood at 27 million in the quarter. Infibeam added that…

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