Strong digital adoption boosts Infibeam’s profit
Infibeam said it had another strong growth mainly due to its flagship product IWS, which grew by 252% YoY in Q3 FY18 and generated 45% EBITDA margin.
Announcing, its financial result for the quarter ended December 31st, 2017, Infibeam said it had another strong growth mainly due to its flagship product Infibeam WebServices (IWS), which grew by 252% YoY in Q3 FY18 and generated 45% EBITDA margin.
The revenue contribution from IWS segment has increased to 66% in Q3 FY18 from 39% in Q3 FY17. According to the company, its IWS revenue grew 252% year-on-year to Rs 1,415 million. While its IWS EBITDA grew 162% year-on-year to Rs 631 Million. It further said that significant growth in transaction led services compared to subscription based services largely contributed to the high revenue growth and to rising profitability.
During the quarter the company has registered significant growth in revenue due to increase in transaction both on digital and payment platform. Government e-Marketplace “GeM” and “BillAvenue” had further contributed significantly to revenue and business growth.
“The transaction-based revenue model that contributes to Service Revenues is a scalable model which is helping the Company earn on every transaction executed on the platform. This is an increasing function of the growth in digital transactions. We will focus on growing transaction services domestically and internationally to benefit from the growing trend of ecommerce” said Vishal Mehta, managing director, Infibeam.
The Company will continue to remain focused to grow its transaction-based revenue stream by providing more innovative digital solutions to brand and retailers thereby increase revenue per merchant. It further said that Synergies between various digital platforms will provide a complete e-commerce eco-system fully integrated with payment gateways, supply chain logistics, data analytics, social media marketing and advertising platforms thus making it a one-stop-shop e-commerce service provider
The Company’s consolidated revenue and profits increased significantly during the December 2017 quarter due to increased transaction on Digital Platform and VAS services. Its consolidated Q3 FY18 revenue grew 108% year-on-year to Rs 2135 million. While PAT grew by 146% Y-o-Y to Rs 308 million. Its flagship product IWS segment has grown 252% YoY in Q3 FY18 and generated 45% EBITDA margin. The revenue contribution from IWS Segment has increased to 66% in Q3 FY18 from 39% in Q3 FY17.
The company has also proposed to appoint Vishwa Ambalal Patel, founder of CC Avenue and Piyush Kumar Sinha, faculty in marketing & retailing at Indian Institute of Management - Ahmedabad (IIM-A) as additional director & non-executive independent director. It has also raised Rs 40 crore from TV18 Broadcast Ltd, a subsidiary company of Network18 Group.