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Infibeam Avenues' net profit jumps 89% to Rs 18 crore, approves bonus share issue

The company, which had reported a net profit of Rs 13 crore in the year-ago period, has also announced the acquisition of UVIK Technologies.

January 31, 2022 / 04:40 PM IST
Representative image

Representative image

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Infibeam Avenues Ltd (IAL) on Monday posted an 89 per cent jump in its net profit to Rs 24 crore for the December 2021 quarter, and announced a bonus share issue for shareholders.

The company, which had reported a net profit of Rs 13 crore in the year-ago period, has also announced the acquisition of UVIK Technologies.

Its gross revenue during October-December 2021 grew 74 per cent to Rs 397 crore from Rs 228 crore in the year-ago period, IAL said in a regulatory filing.

"Driven by strong performance across our diversified digital business solutions and offerings, we have demonstrated yet another quarter of robust performance.

"With the ever-evolving business landscape, we continued to develop cutting-edge digital payment technologies. We remained committed to generating greater value for our millions of merchants and accelerating their business growth online,” IAL Managing Director Vishal Mehta said.

He added that the company will continue to invest in technology and talent pool to achieve its longer-term target of accelerating growth.

Its total TPV (transactions processed value) jumped 90 per cent year-on-year to USD 10.2 billion, accelerating towards the guidance of USD 100 billion.

"While we continue to grow organically, we firmly invested into three strategic pillars including deep penetration in existing markets, new businesses including lending, and international expansion to fuel our growth."

"We aim to build a powerful international brand and increase our market share in the digital payment space,” IAL Executive Director Vishwas Patel said.

IAL Chief Financial Officer Hiren Padhya said the company achieved annualised TPV run-rate of USD 41 billion ahead of its guidance of USD 40 billion set for December 2021, and is accelerating towards its guidance of USD 100 billion.

"Our gross revenue could almost double in FY22 compared to FY21, extrapolating our nine-month performance. We are investing in growth as we see tremendous potential in our business,” he added.

IAL said it has received an expression of interest (EoI) from the Royal family of Qatar to form a joint venture (JV) for the Qatar region to accelerate fast-growing payment’s business, together with the primary equity investment in the said JV, by them.

The board discussed the EoI and the in-principle commitment through EoI and decided to initiate steps to consummate the investment transaction, as per regulatory provisions, to grow the payments business in Qatar, the filing said.

The board has declared an interim dividend of Re 0.05 per equity share and the record date for payment of this interim dividend has been set for February 8, 2022.

The Board has approved the issue of one bonus share for every one equity share held (in the ratio of 1:1) by the company’s shareholders as on ’Record Date’.

The record date, for determining eligible shareholders entitled to receive bonus shares, will be announced in due course.

The bonus issue of equity shares is subject to the approval of the shareholders and other applicable statutory and regulatory approvals, as may be required, the filing said.

Talking about the acquisition, IAL said UVIK Technologies is engaged in the business of Mobile point of Sale (mPOS), near-field communication (NFC) and contactless card technology business in the area of online payments and non-cash transactions.

They specialise in no-hardware contactless softPOS technology that runs on low-end Android mobile devices.

"With this association, we look forward to seamlessly integrating our existing online payment solution along with the offline capabilities of the target company to empower merchants and their customers, across various geographies, with a simple and complete digital payment solution platform,” the filing.

The transaction involves a cash consideration of Rs 12 crore and a preferential issue of about 61.1 lakh equity shares (up to Rs 27.5 crore), and the balance amount by way of the reward incentive mechanism, as mutually agreed, it added.

first published: Jan 31, 2022 04:40 pm