Infibeam Q2FY18 Concall Summary

Infibeam.png

Company updates

  •  Infibeam operates a business model about product platform infibeam.com and services platform, which is contributed to the Infibeam Web Services.
  • Infibeam has resumed the operation of the newly setup registered incorporate office at GIFT City located in Gandhinagar.
  • Gandhinagar office is spread across nearly half a million square feet of area. This location houses all the company’s data infrastructure.
  • Infibeam has added Adani Wilmar to their group and merchants to their portfolio.

Financial Highlights

Infobeam Q2FY18 Financial Performance.png
  • Consolidated Q2 FY2018 revenue grew by 76% Y-o-Y to Rs.2016 million, the increase in revenue was driven by robust growth in Infibeam Web Services.
  • Infibeam Web Services revenue grew 264% Y-o-Y which continues to maintain a very high growth momentum
  • The consolidated EBITDA of the company for Q2 FY2018 grew by 90% Y-o-Y to Rs.404 million headed by strong growth in service segment
  • The PBT of company has grown by 110% to Rs.286 million in Q2FY2018 from Rs.136 million in Q2 FY2017
  • PAT of the company has grown by 76% Y-o-Y to 415 million
  • The EPS of the company has increased by 132% Y-o-Y to Rs.35.
  • The product segment revenue was Rs.794 million
  • The service segment revenue increased by 264% Y-o-Y to Rs.1223 million especially on account of the large transaction volume processed on the platform and addition of new merchants.
  • The total numbers of transactions processed on the platform where the company earn commission in Q2 of FY2018 were 26.6 million
  • The total value of payment that is processed during the Q2 of FY2018 was Rs. 4579 Crores
  • The number of merchants increased Y-o-Y by 34%
  • The growth margins of the company have improved to 4%.
  • Product business now contributes to less than 40% of the overall revenue; this was earlier 70% last year.
Infibeam Q2FY18 Business Segment Performance.png

Infibeam Web Services  

  • The company has focused on building up the Infibeam Web Services portfolio.The margins on the web services segment are 38%.
  • Infibeam Web Services contributes 61% in Q2 FY2018 compared to 29% in Q2 FY2017
  • The company has integrated the platform with payments with logistics with other value-added services to drive demands to become a one-stop solution to the clients.
  • Infibeam has UPI integrated. They have connected to the mPSI switch and all wallets integrated into the system
  • The company uses a lot of AI component in each of their services. 

CCAvenue

CC Avenue.png
  • The company offers payment solutions through their fully owned subsidiary CCAvenue.
  • CCAvenue is the payment aggregator. It is one of the largest direct debit card engine, CCAvenue powers more than 80% of the pay e-commerce merchant.
  • The payment platform can process across 27 international currencies, and it has got all the new age mobile payment like IMPS, EMI and all is integrated.
  • CCAvenue offers more than 240 plus payment provider options in India
  • CCAvenue did not have a significant presence in utility payments.
  • Revenue of CCAvenue last quarter was about Rs. 50 Crores and this quarter it is about Rs. 53-54 Crores.

Logistics

  • The company has a strong logistic solution platform Ship droid to manage logistics for e-commerce industry player.
  • While logistic is not revenue generating for now but it will generate revenue in coming quarters
  • The company plan to expand additional 75 centers within the next few quarters at an estimated cost of Rs. 37.5 Crores 

.OOO domain

OOO Opportunity.png
  • The company will set up a top-level domain.OOO
  • .OOO top-level domain registry has a significant competitive advantage in the acquisition of merchant strategy.
  • The company intends to leverage the.OOO domain registry to attract additional merchants to their platforms, which will be a very cost-effective merchant acquisition strategy. 
  • The cost of managing the .OOO domain for the year has been brought down to a fraction from current level.
  • The company have not announced the price of .ooo domain yet, but it will be much lower than a dot-com

Transformation

  • Infibeam has evolved from being a marketplace to mature Technology Company in the last ten years. 
  • The company is focused on offering cloud-based full-suite e-commerce platform, the small basic businesses, SMEs, large enterprises as well as recent government organizations.
  • They have scaled their business from being India focused on global
  • They developed multiple languages capability, multiple currency support, multiple logistics company integrations as well as many other capabilities to power e-commerce across the globe.

Government eMarketplace and Bharat Bill Pay

  • Infibeam has engaged in the Government eMarketplace project, which is meant for central government procurement,
  • It is estimated that procurements from GeM can be as high as hundred billion dollars a year for the central government.
  • Government e-Marketplace has already had signups from 15 States which will also start procurement on GeM
  • According to gem.gov.in, there are 40,000 sellers with nearly 2.5 lakh products over more than 950 product categories with more than 1.2 lakh orders that have already been placed and total transaction of more than Rs. 2000 Crores.
  • The company will charge 0.5% as transaction fees. Infibeam’s share of the per transaction would be 6 to 12 bps.

International market

  • The International market for Infibeam is small; there is very large potential in the international market.
  • The Middle East is the largest geography for the company. They have started their service in US and Europe as well.
  • Saudi telecom has become an aggregator as well as a user of the company’s framework and the platform.
  • The revenue contribution from international market is about 12% to 13% this quarter.
     

Downloads