CCAVENUENSEQ2 FY'23November 07, 2022

AvenuesAI Limited

10,005words
5turns
1analyst exchanges
5executives
Management on call
Vishal Mehta
Executive Director
Vishwas Patel Mr. Sunil Bhagat
CFO
Purvesh Parekh
Head of Investor Relations
B. Ravi
Consultant
Rajat Gupta
Go India Advisors
Key numbers — 40 extracted
50%
we named it CCAvenue TapPay. The company has also made some strategic investment by picking up a 50% stake in a Gurgaon-based software startup called Vishko22 Products and Services, which is backed
1 lakh
have so far deployed CCAvenue TapPay across more than 15,000 terminals and we plan to take it to 1 lakh by end of this financial year FY '23 and we are targeting to reach 1 million merchants by the end
1 million
d we plan to take it to 1 lakh by end of this financial year FY '23 and we are targeting to reach 1 million merchants by the end of FY '24 on CCAvenue TapPay. I will now briefly talk about our financial
53%
ue on both standalone and consolidated basis. This quarter our gross revenue and net revenue grew 53% year-over-year and 25% year-over-year to INR 435 crores and INR 70 crores, respec
25%
basis. This quarter our gross revenue and net revenue grew 53% year-over-year and 25% year-over-year to INR 435 crores and INR 70 crores, respectively. Our India payments and platform
INR 435 crore
r gross revenue and net revenue grew 53% year-over-year and 25% year-over-year to INR 435 crores and INR 70 crores, respectively. Our India payments and platform business on consolidated levels
INR 70 crore
net revenue grew 53% year-over-year and 25% year-over-year to INR 435 crores and INR 70 crores, respectively. Our India payments and platform business on consolidated levels also includes int
INR 47 crore
ng this growth momentum for the future as well. On a standalone basis, our profit after tax was INR 47 crores, which includes DRC Systems take-sale impact. Consolidated profit after tax stood at INR 40 cror
INR 40 crore
NR 47 crores, which includes DRC Systems take-sale impact. Consolidated profit after tax stood at INR 40 crores and we are confident in achieving our guidance of INR 110 crores to INR 125 crores in profit aft
INR 110 crore
lidated profit after tax stood at INR 40 crores and we are confident in achieving our guidance of INR 110 crores to INR 125 crores in profit after tax in FY '23. Our transaction processing volume for this quar
INR 125 crore
er tax stood at INR 40 crores and we are confident in achieving our guidance of INR 110 crores to INR 125 crores in profit after tax in FY '23. Our transaction processing volume for this quarter crossed an all
INR 1 lakh crore
ter tax in FY '23. Our transaction processing volume for this quarter crossed an all-time high of INR 1 lakh crore, including the non-MDR based payment transaction processing volume. Both payments and GeM and t
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Guidance — 20 items
Gautam Gosar
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“But what I talk about is Middle East and Africa, there are some opportunities because there's a lot of opportunity to evolve there and we think that those will be interesting for us to explore.”
Gautam Gosar
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“We haven't of course formally announced where else would go, but Southeast Asia and Middle East are interesting opportunities for us to explore going forward.”
Gautam Gosar
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“And we expect that in the next two years, international will contribute to 30% of our revenues.”
Gautam Gosar
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“Vishal Mehta: See, our expectation and we have communicated our guidance for this year where we said that we would accomplish transaction processing volume of INR 4 lakh crores, gross revenue of -- and if you go to Slide 12, you will have some indication of that.”
Gautam Gosar
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“We've given guidance on gross revenue, EBITDA, PAT as well as transaction processing volume.”
Gautam Gosar
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“I think we are sticking to our guidance and we think that we will of course have more information to talk about as we go through the quarters.”
Gautam Gosar
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“Typically, you will know that in the festival quarters the TPV we expect to continue building up because in Q3 is typically when we have the festival quarter.”
Gautam Gosar
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“And we think that going forward expect that with the strong economy and the sectors which we talked about where there is significant amount of traction especially in the entertainment and hotels and many others, we expect that that should continue building up for us.”
Gautam Gosar
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“And we want to be able to go and deploy it across at least 100,000 implementations by this year and then scale it to one million or more next year.”
Gautam Gosar
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“So EBITDA margins have declined sequentially so if you could tell us what will be the incremental cost coming from and what would be the margin range for FY '23 we should look at?”
Risks & concerns — 3 flagged
So what this technology brings in is that today with a clunky $100 point-of-sale terminal -- $150 terminal, it's very difficult to deploy in Tier 3, Tier 4 cities.
— Gautam Gosar
So it becomes difficult, that's why the acceptance base is not there today.
— Gautam Gosar
Rahul Jain: I mean yes, I can understand the early adopters will, but still the real challenge comes to scale beyond a point.
— Gautam Gosar
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Q&A — 1 exchanges
Q
I basically have two questions. Firstly, on your international business. So you have recently ventured into Australia and launched the payment business there. So what sort of revenue or margins and growth you are expecting from there? And what are the other countries you are planning to enter this fiscal? And what are your expectations from the overall international business for FY '23 if you could? Vishal Mehta: So international, UAE is our largest market at the moment and you're right, we've expanded into Australia. We are also into Saudi Arabia as well as in the US. With this approach of be
Gautam Gosar
Secondly, though it might be our highest ever quarterly TPVs, but TPVs this quarter again hasn't seen a great sequential growth given the industry growth happening in the last couple of quarters. So is the competition taken the payments growth and what are your expectations in terms of overall GMV growth for FY '23? Vishal Mehta: See, our expectation and we have communicated our guidance for this year where we said that we would accomplish transaction processing volume of INR 4 lakh crores, gross revenue of -- and if you go to Slide 12, you will have some indication of that. We've given guidan
Speaking time
Gautam Gosar
3
Moderator
2
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