IT stock jumps 3% after signing MoU with IISc to develop Deepfake Detection for Govt.

Published 17-03-2025, 11:56 am
© Reuters.  IT stock jumps 3% after signing MoU with IISc to develop Deepfake Detection for Govt.

This Smallcap company, which is into the business of software development services, maintenance, payment gateway services, web development, e-commerce, and other ancillary services, surged 3 percent in early trade after signing MoU with IISc to develop Deepfake Detection for Government.

Price Movement

Infibeam Avenues Ltd‘s (NSE:IFIB) stock on Monday’s session touched a day’s high of Rs. 18.54, which is 3.34 percent. The stock reiterated from the day’s high and was trading at Rs. 17.64, which is 1.67 percent lower than the previous closing price of Rs. 17.94.

The stock has delivered a negative return of around 52.35 percent in the past year and has underperformed the Nifty Index in the same period.

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What Happened

The company’s stock is in focus after Infibeam Avenues signing a strategic Memorandum of Understanding (MoU) for Research and Development (R&D) with the Indian Institute of Sciences (IISc) Bangalore for the collaboration which aims to research and develop advanced real time deepfake detection systems which is designed to digital security for government entity, corporations and organisations to combat the threat of AI generation deception.

Management Commentary

Commenting on the development, the CEO of Phronetic.AI, an AI unit of Infibeam Avenues, Rajesh Kumar SA said, “This partnership is a pivotal step in restoring trust in digital communications. Together, we will equip users with the necessary tools to differentiate between truth and fabrication in an increasingly complex digital landscape, thereby mitigating fraud risks and enhancing digital trust.”

Business Segments

As per the recent December 2024 results, the company recognizes 94.38 percent of its operational revenue from Payment Business and the remaining 5.61 percent from E-commerce platform Business.

Despite the higher percentage contribution to operating profits from Payment Business, the E-commerce segment holds the highest operating profit margins in Q3FY25.

Total Payment Value Contribution

Infibeam Avenues’s Total Payment Value comprises 45 percent from Credit Card, 20 percent from Unified Payment Interface (NASDAQ:TILE) (UPI), and the remaining 35 percent from Others (Net Banking, Debit cards, NEFT-RTGS & others) for the December 2024 quarter.

Financial Performance

Their Q3FY25 results show revenue from operations of Rs. 1,070 crore which increased by 17.97 percent year on year, from Rs. 907 crore in Q3FY24. Their net profit increased by 48.83 percent year on year, from Rs. 43 crores in Q3FY24 to Rs. 64 crores in Q3FY25.

About the company

Infibeam Avenues is an Indian fintech company providing digital payment services, eCommerce platforms, and enterprise software globally. The company was founded in 2007, and it processes over $86 billion in payments through CCAvenue, serves 10+ million merchants, and operates in India, UAE, Saudi Arabia, and Oman.

Written by Santhosh S

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