NEW DELHI: Infibeam Avenues on Thursday reported a 34.5 per cent decline in net profit at Rs 8 crore for the three months ended September.
The company has also decided to invest in So Hum Bharat Digital Payments to apply to the RBI for a New Umbrella Entity (NUE) license for retail payment systems.
It had posted a net profit (excluding share of associates) at Rs 12.22 crore in the year-ago period, Infibeam Avenues said in a regulatory filing.
The company offers digital payment solutions and enterprise software platforms to businesses and governments across industry verticals.
Its consolidated income from operations dropped 8.5 per cent to Rs 153.9 crore in the quarter under review. In the year-ago period, the same stood at Rs 168.3 crore.
On a sequential basis, net profit (excluding share of associates) was higher by 26 per cent from about Rs 6 crore in the June 2020 quarter while revenue was up about 50 per cent from Rs 102.6 crore.
The company’s board of directors has approved investing in So Hum Bharat Digital Payments to apply for a New Umbrella Entity (NUE) license.
The approval is subject to signing definitive agreements.
So Hum is in the business of setting up, managing and operating new payment systems, especially in the retail space comprising but not limited to ATMs, White Label PoS and any other businesses.
“With the V-shaped recovery during the quarter, we have recorded highest ever payment processing volume. With Q3 being a festive quarter and opening up of the economy fully, including signing of certain strategic deals in the quarter, will further give a fillip to our overall growth and profitability,” Infibeam Avenues Managing Director Vishal Mehta said.
He also said the company continues to expand in new geographies through collaboration and partnering with large banks, including financial institutions to expand its market share, thereby broadening its revenue base.
The company said its revenue grew by 50 per cent sequentially despite very low contribution from aviation, travel and tourism, hotel and entertainment industry.
During the September quarter, Infibeam Avenues structured pricing in payment business for capturing market opportunities in line with the industry to sustain profitable growth.
Additionally, new businesses, namely express settlement, neo-banking, including card issuance and lending, and card processing for financial institutions, will strengthen its domestic and international foothold, apart from expansion in Saudi Arabia, Oman and the US, Infibeam said.
According to Infibeam Avenues, more than 33 per cent shareholding will be acquired in So Hum.
“Aggregate cost of investment not exceeding Rs 18 crore, to be invested in the equity shares of the face value of Rs 10 each at par… 33.33 per cent shareholding (will be acquired)… post-acquisition, So Hum will become associate company,” the filing noted.
A separate statement said Navin Surya and Vishwas Patel, Infibeam Avenues’ Executive Director, are collaborating to explore this new opportunity. So Hum Bharat Digital Payments would be soon applying to the RBI for the license to operate as a NUE.
Surya co-founded ItzCash Card Ltd.
“Our government’s vision of a ‘Digital India’ helped in scaling up digital commerce considerably, and this new RBI initiative will go a long way in fulfilling this vision as it seeks to reduce cash transactions even further with a renewed focus on digital payments.
“I believe we have a huge opportunity to make digital payments natural, effortless and invisible in our economy… this also is the philosophy behind So Hum,” Surya said.
Source: Press Trust of India
