KR Choksey's research report on Infibeam Avenues
On a consolidated basis, Infibeam’s gross revenue grew 83.6% YoY (-6.9% QoQ) to INR 3,695.0 mn. This was driven by sharp jump in transaction processed value (TPV) and Net Take Rates (NTRs). Transaction Processed Value (TPV) increased 69.7% YoY (+13.4% QoQ) to INR 855.00 bn in Q4FY22. Net revenue (NTR), which accrues to the company, improved 15.2% YoY (+8.6% QoQ) to INR 760.0 mn or 6.7 paisa in Q4FY22. However, EBITDA margins declined 628 bps YoY (+253 bps QoQ) to 12.1% in Q4FY22 due to 21.4% YoY (+1.0% QoQ) rise in employee expense in Q4FY22. The net profit came at INR 282.4 mn for Q4FY22, down 10.6% YoY (+16.8% QoQ) due to sharp rise in depreciation costs besides YoY fall in EBITDA margins. Depreciation rose 44.6% YoY and 23.5% QoQ to INR 163.0 mn. Also, PAT margin declined by 802 bps YoY (+155 bps QoQ) to 7.6%.
Outlook
As such, we lower the TP (from post bonus implied TP of INR 43.0 or INR 86.0 before bonus) to INR 28.0 and maintain “BUY” on the shares as it indicates an upside potential of 83.0% over the CMP of INR 15.
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