Infibeam Avenues jumps 6% as Q1 net profit jumps 59%; Company to demerge digital marketing arm

During Q1FY25, the company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) were up by 25% YoY to ₹69.8 crore. The company reported its EBITDA margin for the quarter at 59% of the net revenue which was higher than the margin of 57% in the corresponding period last year.

Infibeam Avenues’ transaction processing value (TPV) for the quarter jumped 67% YoY to ₹1,977 crore.

In Q1FY25, the company acquired the remaining 26% stake in Infibeam Digital Entertainment from Sony.

Infibeam Avenues also announced that it has acquired a 54.10% stake in Rediff.com and will use the RediffMONEY platform to cross-sell financial products such as loans, insurance, and investment products. Through the acquisition, the company aims to diversify its portfolio and leverage the large user base of Rediff.

Further, the company announced that its international subsidiary, Infibeam Avenues Saudi Arabia became the first Indian fintech company to secure a PTSP Certification from the Saudi Arabian Monetary Authority (SAMA). The PTSP Certification allows the company to operate as a payment processor in the Kingdom of Saudi Arabia.

Infibeam Avenues also announced that the company is awaiting approval from the National Company Law Tribunal (NCLT) to demerge its digital marketing arm, Odigma Consultancy Solutions. Following the demerger, shareholders of Infibeam Avenues will receive one share of Odigma for every 89 shares of Infibeam Avenues.

Providing guidance for FY25, the company expects net profit to grow by 18-35% YoY while net revenue is expected to grow 5-17% YoY.

Shares of the company have risen by nearly 49% since the beginning of the year. The stock has gained over 118% in the past year.