INFIBEAM Chairmans Speech

Dear Shareholders

extend a warm Greetings to all of you and your family members as I present the annual report and accounts for the Financial Year 2016-17. This is the second annual report of your Company, post listing of your Company''''s ^Shares on Indian stock exchanges.

It is indeed a great satisfaction to find that your Company has made a significant progress and grown larger in revenues and profits. I congratulate the management of the Company for quadrupling the profits since last year, enabling us to generate accruals.

In the fast-growing e-commerce industry, your Company operates a unique business model and earns revenue and profits, from twin platforms; viz. the e-commerce infrastructure services to merchants and digital market place for consumers.

1. The Service platform is called as Infibeam Web Services [IWS], where your Company provides cloud based e-commerce platform, related ancillary services, digital payment solutions, along with complete delivery fulfillment infrastructure to the merchants and brands for their e-commerce business requirements

2. The Product platform is called as, a multi-category online shopping store for the consumers to buy merchandise through multi-channel online platforms It is a matter of great satisfaction to find that Infibeam is the only e-commerce company in India providing global e-commerce trade experience to some of the large Indian and International companies. The improvement in digital infrastructure combined with growing consumer confidence towards online transactions, augurs well for the e-commerce sector.

Let me review some of the key achievements with you.

Financial Performance

Our consolidated revenues and profits for the Financial Year 2016-17 (FY17) grew by 31% and 396% to Rs, 4,413 million and Rs, 435 million respectively over the previous year, despite the temporary disruption caused by the demonetization, reflected poorly on the cash-on-delivery (CoD) business model

Our revenue has grown at a CAGR of 28% over the last five years beginning FY12

Our profits after tax has increased to Rs, 435 million in FY17 as against Rs, 88 million in FY 16

Our revenue and profits have significantly increased due to our increasing focus on the Services (IWS) segment that generates :^:^nearly above 50% EBITDA margins and has grown at a CAGR of 100%, in the last five years, and currently contributes 36% to total revenues in FY17 from 4% in FY12 ® Our operating cash flows in FY17 grew over 150% year on year to Rs, 593.2 million

During the year your Company significantly strengthened its presence in the local as well as global markets.

I am happy to find your Company making successful inroads into the international market through our prestigious associations with companies like Saudi Telecom Company (MENA region) and Sears (USA) who have signed up our platform to grow their business

We entered into an MoU with IL&FS Township & Urban Assets £S:£:£Limited for undertaking and implementing projects in digital space and e-commerce for Central Government, various State Governments and Private Partners ® The Company has also been awarded a prestigious contract by Government of India to design, develop and implement Government e-marketplace (GeM)

We have also received confirmation from the Government of Gujarat, Delhi, Sikkim, and Maharashtra to provide a "Unique & Verified Digital Identity Platform” ("Digital Services”) on the ".OOO” global top level domain (gTLD) with authorized and secured digital wallets for citizens residing in those states ® We signed an MoU with Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF) for developing ''''online and mobile'''' framework. We are operational at multiple locations in Gujarat since 2nd half of the year and the progress has been extremely encouraging

I would now like to draw your attention to key corporate actions in FY17 showcasing our long-term growth and sustainability.

We have acquired stake and filed to merge Avenues (India) Pvt Ltd (CC Avenue) that operates payment gateway services. CC Avenue enjoys 85% of the payments so aggregated in the country for over 100,000 merchants

- In FinTech stream of digital commerce, CC Avenue is the largest transaction processing company with volume exceeding '''' 120 billion and growing above 70% CAGR since FY2015

- Like Infibeam, CC Avenue is also a profitable company in the FinTech segment

- Combined with IWS, CC Avenue payment platform will result in an integrated services platform to merchants, enabling your Company to tap the immense potential in digital payments both in India and globally

- This is a strategic investment by us to gain an access to the growing digital payments industry. This will also allow us to offer a complete e-commerce solution to the merchants globally

- I am thankful to you for your consent and approval of merger of CC Avenue with Infibeam, which you gave to the board of your Company

During the year, we have also acquired DRC Systems specializing in customized system integrations and developing ERP-related solutions for merchants, used in e-commerce business. DRC System is a profit-making entity and will strengthen our abilities to deliver digital solutions to our customers

Following are some of the major milestones achieved by your

Company in FY17

Mr. Vishal Mehta, Managing Director, Infibeam Incorporation M:M::::;Limited was conferred with B. H. Jajoo AMA Outstanding I.T Entrepreneur of the Year Award

On May 26, 2017, Infibeam was included in NIFTY Alpha 50 Index. NIFTY Alpha 50 Index aims to measure the performance of securities listed on NSE with high alphas;it is a well-diversified 50 stock index

On March 31, 2017 Infibeam was included in Futures and Options segment of National Stock Exchange of India Ltd. (NSE)

Morgan Stanley India Domestic Index (MSCI) a leading provider of benchmark indices globally have added Infibeam in their recent-companies listing; Infibeam, one among 6 companies, has been included in the list, which has been effective from November 30, 2016

From August 26, 2016 Infibeam has been a part of S&P BSE 500 Index

IPO Proceeds Update

Setting up of cloud data centre and purchase of property for setting up registered and corporate office of our Company: The Company has executed the Transfer :;:;s;x;s;:;:;Deed and taken possession of GIFT Two building in GIFT City as per the agreed payment terms in prospectus. We are planning to move to GIFT City anytime during the third quarter of the current financial year.

Setting up of Logistics Centre: The Company has plans to expand across additional 75 centres within the next 3 years at an estimated capital cost of Rs, 375 million. The investment is expected to result into cost efficiencies and incremental revenue from services. The Company has started the investment by identifying locations with more clarity coming under the GST.

The Company will report further progress on Capex incurred on quarterly basis under the terms stated in prospectus.

Purchase of Software: The Company has initiated work towards Mobile Ad framework and the software is expected to be purchased and put to use in a phase wise manner over a period of next 12 months. The Company will be reporting the progress in successive quarters.

General Corporate Purpose: As stated in prospectus, the IPO & Advertisement expenses have been incurred and accounted for in the full year Financial statement of March 31, 2016. The Company, through its fully owned subsidiary, made i;xi^xan investment in CC Avenue s as a part of long term strategy.

A combined cash balance in books, duly increased under the contributions coming from earned profits during the FY March 2017 stands at Rs, 3,067 million.

I would like to acknowledge the efforts made by the Management Team of your Company and producing profitable financial performance, achieving landmarks beyond targets. I would also like to thank all our investors and bankers for believing in our potential. I would also like to thank all our customers, merchants, suppliers, service providers, and each employees of your Company for their continued support.

We will continue exploring newer opportunities to offer our unique web-based services and technology infrastructure and power digital enterprise of our customers and add value to each of our stakeholders associated with us. And more importantly, I thank you, our shareholders, for trusting us with your investments.

Best Wishes,

Ajit Mehta

Chairman, Infibeam Incorporation Limited

CIN: U67190WB2003PTC096617. Trading in Commodities is done through our Group Company Dynamic Commodities Pvt. Ltd. The company is also engaged in Proprietory Trading apart from Client Business.

Disclaimer: There is no guarantee of profits or no exceptions from losses. The investment advice provided are solely the personal views of the research team. You are advised to rely on your own judgment while making investment / Trading decisions. Past performance is not an indicator of future returns. Investment is subject to market risks. You should read and understand the Risk Disclosure Documents before trading/Investing.

Disclosure: We, Dynamic Equities Private Limited are also engaged in Proprietory Trading apart from Client Business. In case of any complaints/grievances, clients may write to us at

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