Release Date: August 02, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Infibeam Avenues Ltd (BOM:539807, Financial) reported double-digit year-over-year growth in net revenue, EBITDA, and profits for Q1 FY25.
- The company has appointed Mr. Narayanan Sadanandan as an Independent Director, bringing extensive experience in finance and banking to the board.
- The Board has approved an investment in Rediff.com, which is expected to enhance user engagement and open up new revenue streams.
- Infibeam Avenues Ltd (BOM:539807) has acquired the remaining 26% in Infibeam Digital Entertainment, making it a fully owned subsidiary.
- The company has been granted a payment aggregator license by the RBI, which will help in onboarding new merchants and expanding its digital payment services.
Negative Points
- The company has not recorded any revenue from the GeM platform, which has led to a marginal decline in platform business revenue.
- There is a slow growth in transaction processing volume (TPV) excluding GeM, with only a 4% increase in the payments business.
- The company has not received any incentives from banks for UPI transactions, impacting potential revenue from this segment.
- Rediff.com, which Infibeam Avenues Ltd (BOM:539807) has invested in, reported a marginal loss of INR4-5 crores last year.
- The company faces challenges in scaling its AI initiatives, particularly in achieving accuracy and solving complex problems in video AI.
Q & A Highlights
Q: Could you share the gross take rate for this quarter?
A: Refer to slide number 10 for the breakup of payments TPV and platform TPV for the quarter.
Q: Why is there a decline in the platforms business on a quarter-to-quarter basis?
A: We haven't recorded GeM revenue, similar to Q4 of last year. We expect more clarity on GeM by the end of Q2.
Q: What is the reason for the 4% growth in TPV excluding GeM?
A: Q1 is typically slower for payments. We are also not reporting UPI transactions. Our focus is on profitable growth and higher take rates.
Q: What contributed to the increase in net take rates, and how sustainable are they?
A: Continuous optimization of our payment infrastructure and increased take rates in both UAE and India contributed to the growth. We expect this trend to continue.
Q: Can you elaborate on your strategy for financial services aggregation?
A: We understand aggregation well and plan to leverage our recent investment in Rediff to distribute financial products like insurance and lending, aiming for 2-4% revenue contribution this year.
Q: What is the rationale behind the demerger of ODigMa?
A: Digital marketing will be decoupled from payments to expand its ecosystem and avoid compliance limitations. This will benefit shareholders and allow for greater monetization opportunities.
Q: How do you plan to scale Kiya, the video AI developer platform?
A: We are optimistic about its potential in the uberization of payments. We are currently in the pilot phase and expect to roll out more contracts in the coming months.
Q: What are the future prospects with GeM?
A: GeM continues to use our platform, and we are in arbitration to resolve payment issues. We expect more information in the next couple of months.
Q: What is the status of your expansion in Saudi Arabia?
A: We have received the Saudi Arabian PTSP license and signed agreements with SAB Bank. We expect to start reporting Saudi Arabian numbers by the end of this quarter.
Q: What is the expected CapEx for Rediff in the next 1-3 years?
A: Beyond the initial investment, Rediff should be able to build up from there. We will provide more details as we scale.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
