Business E-commerce IT & Web-tech News

Infibeam posts 17% increase in annual revenue with net profit of 9.24 crores

Share on Facebook
Tweet about this on TwitterShare on Google+Share on StumbleUponShare on LinkedInPin on PinterestShare on Reddit

Infibeam, which made headlines earlier this year for being the first e-commerce company going for an IPO, has posted significantly positive financial numbers for the quarter ended March 2016 as well as the whole year.

The company posted a 17% increase in annual revenues which stood at Rs 336.95 crores as compared to Rs 288.2 crore in the previous year. Overall, it earned a net profit of Rs 9.24 crore as compared to a net loss of Rs 10.11 crore in the previous year.

These numbers are a respite, specially to investors who took part in the company’s recently concluded IPO, wherein two participating banks had withdrawn their offers, apparently due to high price of Infibeam shares. Despite these initial hiccups though, the company successfully managed to get its ₹450 crores worth IPO, over-subscribed.

Quarterly, Infibeam posted profitable numbers with a net profit of Rs 1.95 crore on revenues of Rs 75.6 crore. In a statement, the company claimed to have turned cash positive in this quarter with an operating cash inflow of more than Rs 23 crore. For comparison, the company had witnessed a cash burn of Rs 20.9 crore during the same period in last year.

When most the Indian players in e-commerce segment burn cash and report losses, Infibeam has adopted a proven way of staying cash positive while recording the growth,

said the company statement.

While this is indeed true, but if one has a close look and further dissect these numbers, it becomes clear that it is the revenue from software services segment of the company, which has largely contributed to the profitability.

In fact, the e-commerce segment of Infibeam posted a net loss of Rs 7.54 crore on revenues of Rs 48.2 crore for the quarter. Annually too, the segment registered a loss of a net loss of Rs 19.51 crore on revenues of Rs 234.11 crore. E-commerce however, continues to bring a majority share of the revenues contributing nearly 70% of the total annual revenues.

Nevertheless, the share of revenues from software services also grew to 30.5% this year as compared to 23% in the previous year. The segment brought in a total of  Rs 102.83 crore in revenues, with a net profit of Rs 57.04 crore. Quarterly, software services was responsible for revenues of Rs 27.4 crore earning a net profit of Rs 15.2 crore.

The company also acknowledged the value of services segment in making up for the cash burn for growth in e-commerce market, and said in the statement,

This marks the beginning of turning the Services and Products segments profitable and most importantly earning cash vis-a-vis burning for growth in the e-commerce markets. 

To further strengthen its services segment, Infibeam also announced a new Wholly Owned Subsidiary company in Dubai which would aid its services business in MENA region while also increasing the service revenues.

There are over 53,633 registered merchants on the BuildaBazaar platform of Infibeam as of March 31, 2016. It also claims to have more than 5,000 merchants on its e-commerce marketplace


Add Comment

Click here to post a comment

Your email address will not be published. Required fields are marked *