MAGIC BOX

Friday, August 12, 2016

Infibeam Incorporation Limited Reports First Quarter Result (Q1FY’ 2016-2017)


Total Revenue to 1031mn |PAT237 % to Rs. 96mn (YoY same period)

Highlights of the Consolidated Financial Result for Q1 Ended June 30th, 2016

  • Service Revenue grew by 43 % to Rs. 322 mn vs. Rs. 225 in Q1 FY’16
  • Product Revenue grew by 15 % to Rs. 709 mn vs. Rs. 617 in Q1 FY’16
  • Total Revenue grew by 22 % to Rs. 1031 mn vs. Rs. 843 in Q1 FY’16
  • EBITDA grew by 139 % to Rs. 169 mn vs. Rs. 71 mn in Q1FY’16
  • Profit after tax on Total Revenue grew by 237 % to Rs. 96 mn vs. Rs. 28mn in Q1FY'16.
Infibeam Incorporation Limited (the Company) declared its Consolidated Financial Results for the first quarter (Q1FY16-17) ended June 30, 2016. Compared to Q1FY’ 15-16 the company has outperformed in Q1FY’ 16-17 result reporting growth in Product and Service Segment business. The company has reported growth in product revenue by 15% and service revenue by 43% compared to corresponding Q1FY’ 15-16. This is the first Quarter Result reported by the companpost listing which was on April 04, 2016.


Highlights of Quarterly Results – June 2016 Rs. In Million


Q1 April -June-15
Q1 April June-16
% Increase
Service
225
322
43
Product
617
709
15
Total Revenue
843
1,031
22




PAT
28
96
237
EBITDA
71
169
139

Operational Reviews:

Service Segments:

The total number of registered merchants on platform as on 31.3.2016 was 53633 which has increased to 57482 as on 30.06.2016. Infibeam recorded a growth in Services Revenue by 43 % to Rs. 322 mn compared to Rs. 225mn in Q1 FY16.

Infibeam is unique company, in the global e-commerce market, have achieved a rare distinction by providing an integrated and synergistic business model for B2B and B2C segment of customer on cloud based infrastructure, enabling online sale of product and services for merchants locally as well as globally.

Infibeam has built BuildaBazaar platform (www.buildabazaar.com) for enabling online e-commerce services for merchants to sell their products and services to customers. The platform so used by the merchant is provided on the cloud wherein it offers the ease of doing business at an affordable cost. It is a unique proposition for the local and global merchants to use this cloud based platform and get online marketplace instantaneously with ready to sell products on the web, which makes Infibeam a unique service provider in the global marketplace. The scalability of this business model is so high for Infibeam now which helps the company to acquire merchants without losing money and thereby growing the revenues from services, yet remain profitable and cash positive.

The company earns revenues by offering a combination of set-up cost followed by monthly fee and a per-transaction commission.

Product Segments

Infibeam.com, the e-commerce marketplace portal of the company, stays positive with positive contribution from sale of goods. Probably the only company in e-commerce marketplace generating cash positive performance. Product Revenue grew by 15 % to Rs. 709 mn compared to Rs. 617 in Q1 FY16.

Infibeam.com provides wide range of products across 40 product and service categories, including mobile and tablets, computer and accessories, electronics and cameras, housing and kitchen, books and magazines going up to fashion products, music, travel and gifts.

The company has more than 5000 registered merchants who sell directly on Infibeam.com. As of June 30th 2016, the company has more than 15 mn SKUs and 8.2Mn active users on Infibeam.com. It is a conscious and strategic effort of the management to be positive with contribution in this crowded e-commerce space where online retailers are losing money.

Infibeam follows the strategy of forward investing while ensuring profitable tracrecord.

New Development in First Quarter

The Q1FY17 marks the beginning of Milestone Journey for the company with some of the most prominent customers signing up with the company for their e-commerce platforms

Infibeam powering digital marketing of AMUL and Saudi Telecom

  • Agreement with world’s largest milk producer AMUL, the Gujarat Cooperative Milk Marketing  Federation  (GCMMF)  for  developing  online  and  mobile  framework  to enable Amul products “direct to home”

Infibeam has executed an agreement with GCMMF to provide online e-commerce and mobile platform with integrated logistics framework for on-demand customer purchase of Amul Products.

  • Saudi  Telecom  Company  selected  Infibeam  technology  platform  “Buildabazaar”  to build its next generation mobile experience “JAWWY” (www.jawwy.sa)

Saudi Telecom Company (STC), the largest modern mobile network operator in the Middle East, recently launched Jawwy from STC, a new digital mobile experience for todays tech savvy millennials. Jawwy, which means "my way" in Arabic, is a global first, utilizing an online, digital- first service model featuring its own SIM, app and freshly designed digital channels for sales and customer care.

STC has selected Infibeams technology platform BuildaBazaar for Jawwy to use the companys end-to-end e-commerce solution. The integration of Infibeam's platform with social media allows aggregation of users from all social media networks, enabling Jawwy to integrate digital and physical retail channels to deliver a new buying experience and serve its target market more nimbly than other mobile service brands.

  • Investment in payment Solution Company: CC Avenue, a leading payment processing solution provider in India.

The company thru its fully owned subsidiary NSI Infinium Global Pvt Ltd has invested Rs 600 Mn in CC Avenue, a leading payment processing solution provider for thousands of merchants across Business verticals. The role of payment processor is very crucial under e-commerce model for completing the financial transactions after the purchase is made by the customer. For Merchants, the payment integration is a very critical/equally important for expanding his merchandise which on the other hand results into higher sales. The advantage to Infibeam would be in form of incremental revenue by way of deep integration for customers shopping on BuildaBazaar merchant store and also on Infibeam.com.

  • International Expansion: Setting up wholly owned subsidiary company in Dubai.
Infibeam  Incorporation  Limited  is  in  the  advance  stage  of  setting  up  a  Wholly  Owned  Subsidiary Company in Dubai. The Wholly Owned Subsidiary Company will be helpful in catering the services business of the Company in the MENA region and will also help in increasing the services revenue of the Company.


Update on IPO listing

Infibeam has raised Rs 4500 Mn through IPO this year and is among the first e-commerce company in India to get listed on Indian stock exchange. As on 12th August, 2016 the market capitalization stands at Rs 4394 crore. It is listed on the BSE with a BSE Code of 539807 and the NSE with an NSE Code of INFIBEAM.

Media Contact - Shekhar Singh 9825060991 shekhar@infibeam.ooo