AvenuesAI (539807) Q3 24/25 earnings summary

Executive summary

• Achieved strong Q3 FY25 results with 18% YoY gross revenue growth, 28% YoY net revenue growth, 15% YoY EBITDA growth, and up to 49% YoY PAT growth, driven by digital payments, AI, and international expansion.

• Strategic acquisition of Rediff provides access to 65 million monthly users, enabling cross-selling of financial products and lowering customer acquisition costs; Rediff became a subsidiary effective October 1, 2024.

• Launched AI subsidiary Phronetic.AI, targeting 5-10% of net revenue from AI-driven innovations in 2-3 years.

• Expanded international presence, especially in GCC markets, with new merchant acquisitions, payment processing launches in Saudi Arabia, and major merchant wins including Nissan and Infiniti Saudi Arabia.

• Strategic partnerships and new product launches, including CCAvenue SoundBox, RediffPay, and RediffOne, contributed to growth.

Financial highlights

• Q3 FY25 gross revenue rose 18% YoY to INR 10,704 million; net revenue up 28% YoY to INR 1,399 million; PAT up to INR 644 million (up 49% YoY); EBITDA up to INR 1,014 million (up 40% YoY).

• Transaction Processing Value (TPV) reached INR 2,240 billion, up 24% YoY.

• Net take rate improved to 11.1 bps in Q3 FY25 from 8.4 bps in Q3 FY24.

• Over 10 million merchants, with 180,978 new activations in Q3.

• Q3 consolidated EPS (basic): INR 0.23; nine-month EPS: INR 0.65.

Outlook and guidance

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

• International revenue expected to contribute 20-25% of overall revenue in the next two years; international expansion targeting 12–15% of payment net revenue from outside India by FY28.

• Rediff anticipated to contribute 2-4% of revenue, with potential to reach 10% in coming years.

• AI and data center businesses projected to reach high single-digit percentage of net revenue within three years.

• Management anticipates continued growth, leveraging AI-driven solutions and expanding digital offerings.