Infibeam Avenues on Friday reported a 25 per cent decline in consolidated net profit at Rs 19.1 crore for March 2020 quarter. The company had posted a net profit of Rs 25.4 crore in the year-ago period, Infibeam Avenues said in a statement.
Its revenue declined 27.4 per cent to Rs 135.9 crore in the quarter under review as compared with Rs 187.3 crore in corresponding period of 2018-19, it added.
The company said FY19 numbers exclude divestment and demerger of non-core businesses in FY19, and an exceptional item.
In 2019, the company had decided to focus on the core businesses of digital payments and enterprise software platforms. It had divested its non-core businesses such as online e-commerce marketplace, and technology platform solutions for small and medium enterprises.
The exceptional items for the quarter and year ended March 31, 2019 include profit on disposal of investment in wholly-owned subsidiary, loss on buyback of investment by associate company, provision for diminution in value of investment in subsidiary company, a regulatory filing showed.
For fiscal 2019-20, the adjusted net profit was at Rs 99.8 crore (up 128 per cent), while revenue grew 10 per cent to Rs 648.1 crore from the previous financial year.
The company said the growth in annual revenue was on account of strong engagements across enterprise software platforms businesses, and growth in digital payments business in domestic and international operations.
It said the platforms' business achieved strong double-digit revenue growth compared to previous year.
During the year, upgrades and additional requirements by few subscription-based enterprise clients, and increase in volumes on GeM portal (transaction-based client) led to the growth, it added.
However, revenue in fourth quarter was impacted due to lower invoicing and collections on account of lockdown in the last few days of March 2020, it said.
"...the payments business recorded strong volume of 147 million, up 28 per cent year-on-year and recorded highest-ever quarterly volume of 40 million in Q4 FY20, up 39 per cent year-on-year," it said.
On the impact of COVID-19 pandemic, Infibeam said before complete lockdown in March, its digital payments business was processing payments at an annualised run rate of Rs 75,000 crore in India.
In the lockdown period of March 2020 (March 25 to 31), the average daily payments processing volume fell 30 per cent compared to pre-lockdown period of March 2020.
Volumes continued to be low in April. However, in May, the average daily payments processing value grew 32 per cent with 14 per cent growth in volume as compared to April.
"With further relaxations announced from June 2020, we believe usage will return to normal soon and start growing," the company said.
In the UAE, however, the company observed a different trend, as both the value and volume increased in April 2020 as well as in May 2020, month on month.
For the platforms business, the company said, its contracts and their billings are not materially impacted.
"The full extent to which the pandemic will impact company's future financial results will depend upon upcoming developments, which are fairly uncertain. We are hopeful that the overall digital transactions in the economy will increase as the economy gradually opens, mitigating the pandemic challenges," it added.
Vishal Mehta, Managing Director of Infibeam Avenues, said the company is sharpening its focus on long-term growth metrics to create value for its stakeholders.
"We are expanding our digital payment business in multiple geographies to capitalise on growth in digital payments. We now offer complete digital solutions comprising payments acquiring, payments issuance, remittances and digital platforms," he added.
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