Infibeam Incorporation Ltd, the parent of online marketplace Infibeam and e-commerce enabler BuildaBazaar, reported a net profit of Rs 13.6 crore for the fourth quarter ended 31 March 2017, up 489% from Rs 2.3 crore in the same quarter last year.
For the financial year ended 31 March 2017, the company’s consolidated net profit grew 396% to Rs 43.5 crore from Rs 8.8 crore last year.
The firm recorded revenues of Rs 121 crore for the quarter, which is an increase of 60% from Rs 75.6 crore in the year-ago quarter. It also marked a 17.6% increase from the previous quarter ended 31 December 2016.
Infibeam’s revenues for the financial year stood at Rs 441.3 crore, an increase of 31% from Rs 337 crore last year.
EBITDA for Q4 increased 17% quarter on quarter to Rs 19.8 crore. For FY2016-17, EBITDA grew 203% to Rs 83 crore from Rs 27.4 crore last year.
For FY2016-17, Infibeam’s revenues from services grew 56% to Rs 160 crore from Rs 103 crore in the previous year. On the product front, revenues jumped 20% to Rs 291.5 crore from Rs 234 crore in the last financial year.
Revenues from e-commerce rose 39% to Rs 67 crore from Rs 48.2 crore in the corresponding quarter last year. For the full year, e-commerce revenues increased 20% to Rs 281.5 crore from Rs 234.1 crore in the previous year.
“The company has demonstrated its ability to turn the service segment (Infibeam web services) and the product segment (Infibeam e-retail platform) profitable while recording a consistent growth. The firm believes that an entry into international regions is positive as realisations in foreign markets are much higher,” Infibeam said in a statement.
The company’s board has approved an investment of Rs 60 crore for acquiring the 3.85% stake held by its wholly-owned subsidiary NSI Infinium Global in digital payment gateway CCAvenue. This will take Infibeam’s total investment in CCAvenue, which is run by Avenues India Pvt. Ltd, to Rs 210 crore and raise its ownership in the payment gateway to 11.35%.
In February, Infibeam signed an agreement to invest Rs 150 crore in CCAvenue to acquire a 7.5% stake, in addition to the 3.85% stake it had picked in June 2016 for around Rs 50 crore through NSI Infinium Global. Infibeam said after the stake purchase, CCAvenue will be merged with itself.
“The merger of CCAvenue with Infibeam will be highly cash and profit accretive and will result in high growth supported by the combined strength of more than 100,000 merchants,” the company said.
The firm recently signed an agreement to invest $466,000 (around Rs 3 crore) in fin-tech startup Avenues Payments India, which operates digital money remittance platform RemitGuru.
“This investment would be helpful in increasing the cross-border ecommerce business transactions and making the remittance business cash free through fin-tech solutions,” the company said.
It also acquired Ahmedabad-based software development firm DRC Systems Pvt. Ltd through NSI Infinium.
Like this report? Sign up for our daily newsletter to get our top reports.