AvenuesAI (539807) Q1 24/25 earnings summary

Executive summary

• Achieved double-digit year-over-year growth in net revenue, EBITDA, and profits in Q1 FY25, with optimism for continued growth driven by strategic execution, innovation in AI, and digital payments.

• Expanded merchant base to over 10 million, with daily additions averaging 2,550+ in Q1 FY25.

• Appointed Mr. Narayanan Sadanandan as an independent director, strengthening the board with deep finance and banking expertise.

• Acquired a 54% majority stake in Rediff.com to synergize digital payments, platform offerings, and AI, leveraging Rediff’s 55 million monthly users for cross-selling financial products.

• Acquired the remaining 26% of Infibeam Digital Entertainment, making it a wholly owned subsidiary, and created a new AI-focused subsidiary for fraud detection and prevention in fintech.

Financial highlights

• Q1 FY25 gross revenue: INR 7,528 million; net revenue: INR 1,185 million (up 20% YoY); EBITDA: INR 698 million (up 25% YoY); PAT: INR 504 million (up 59% YoY).

• Payment Transaction Volume (TPV) surged 67% YoY to INR 1,977 billion.

• Net take rate in payments improved to 11.2 bps, a 33% YoY increase, surpassing previous guidance.

• EBITDA margin improved to 59% and PAT margin to 43% of net revenue.

• Other income of INR 28 crores attributed to Ind AS fair value changes in equity shares.

Outlook and guidance

• FY25 guidance: gross revenue INR 39,000–42,000 million (up 23–32% YoY); net revenue INR 4,500–5,000 million (up 5–17% YoY); EBITDA INR 2,750–3,000 million (up 9–19% YoY); PAT INR 1,750–2,000 million (up 18–35% YoY).

• International business targeted to contribute 12%-15% of net revenue in FY25, aiming for 30% in 2-3 years.

• Value-added services expected to contribute 2%-4% of revenue in FY25, rising to 7%-10% in coming years.

• Arbitration with GeM ongoing; no GeM platform revenue recognized in Q1 FY25, with resolution expected by end of Q2.

• Continued focus on international expansion, especially in the Middle East, and scaling of AI and platform businesses.