Yatra(YTRA) - 2024 Q1 - Quarterly Report

Introduction & CEO Commentary The CEO highlighted strong FY2023 performance, with Q4 showing exceptional growth from travel recovery and new corporate customers, expressing confidence in the Yatra India IPO CEO's Statement The CEO highlighted strong FY2023 performance, with Q4 showing exceptional growth from travel recovery and new corporate customers, expressing confidence in the Yatra India IPO - Q4 FY2023 was the strongest quarter since the onset of COVID, with 97.4% YoY revenue growth and a shift from a loss of INR 53.4 million in the prior-year quarter to a profit of INR 7.5 million[3] - The company signed a record number of 97 medium to large corporate customers in the year ended March 31, 2023, underscoring its leadership in the corporate travel segment[3] - The Indian subsidiary, Yatra India, received SEBI's final observation letter for its IPO and has received positive feedback from investors, bolstering confidence for a successful offering to strengthen its financial position and pursue new corporate business[5][6] Financial and Operating Highlights The company demonstrated strong financial recovery and growth in fiscal year 2023, marked by significant revenue increases and a positive shift in profitability metrics For the Three Months Ended March 31, 2023 Q4 FY2023 saw significant year-over-year growth, with revenue up 97.4% to INR 1,194.3 million and a turnaround to profit of INR 7.5 million Q4 FY2023 Financial Highlights (YoY) | Metric | Q4 2022 (INR millions) | Q4 2023 (INR millions) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 604.9 | 1,194.3 | 97.4% | | Adjusted Revenue | 980.0 | 1,894.9 | 93.3% | | Profit/(Loss) for the period | (117.2) | 7.5 | 106.4% | | Adjusted EBITDA | 52.9 | 185.6 | 251.0% | | Total Gross Bookings | 11,426.4 | 17,832.7 | 56.1% | For the Year Ended March 31, 2023 Full fiscal year 2023 showed strong recovery, with revenue up 92.4% to INR 3,827.3 million, a narrowed net loss, and positive Adjusted EBITDA Full Year FY2023 Financial Highlights (YoY) | Metric | FY 2022 (INR millions) | FY 2023 (INR millions) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 1,989.4 | 3,827.3 | 92.4% | | Adjusted Revenue | 3,302.4 | 6,153.1 | 86.3% | | Loss for the period | (482.5) | (288.2) | 40.3% | | Adjusted EBITDA | (159.0) | 422.9 | 166.0% | | Total Gross Bookings | 34,298.4 | 67,397.5 | 96.5% | Key Business Updates & External Factors Key business updates include the Yatra India IPO progress, ongoing COVID-19 recovery, and the potential impact of Go First airline's insolvency Yatra India IPO Status Yatra's Indian subsidiary is proceeding with its IPO on Indian stock exchanges, having received SEBI's final observation letter in November 2022 - Yatra India received the final observation letter from SEBI on November 17, 2022, for its proposed IPO, which can open for subscription within 12 months of that date[15] COVID-19 Pandemic Impact The Indian travel industry is strongly recovering from COVID-19, though the pandemic's long-term effects on business remain unpredictable - The Indian travel industry is experiencing a strong recovery in both Corporate and Consumer sectors, but the future effects of the COVID-19 pandemic on the business remain unpredictable[16] GoAir Insolvency Impact Go First airline's insolvency filing poses a risk to Yatra's gross bookings and revenue, leading to a reversal of INR 15.1 million in expected income - Go First airline's insolvency filing on May 2, 2023, may reduce air ticket supply, potentially impacting Yatra's gross bookings and revenue[17][19] - The company has accounted for a reversal of INR 15.1 million in expected income and an advance of INR 24.1 million related to Go First for the year ended March 31, 2023[19] Detailed Financial Performance Analysis This section provides an in-depth analysis of the company's financial performance for both the quarter and full fiscal year ended March 31, 2023 Results of Three Months Ended March 31, 2023 Q4 FY2023 saw significant operational improvement, turning a profit from operations of INR 115.5 million driven by strong revenue growth and travel market recovery - The company turned a profit from operations of INR 115.5 million in Q4 2023, a 316.5% improvement from a loss of INR 53.4 million in Q4 2022[10][40] - Adjusted EBITDA for Q4 2023 increased by 251.0% YoY to INR 185.6 million[10][37] Revenue Analysis Q4 FY2023 total revenue grew 97.4% to INR 1,194.3 million, primarily driven by Air Ticketing and Hotels & Packages segments Q4 2023 Adjusted Revenue by Segment (YoY) | Segment | Q4 2022 (INR millions) | Q4 2023 (INR millions) | YoY Change | | :--- | :--- | :--- | :--- | | Air Ticketing | 667.5 | 1,459.6 | 118.7% | | Hotels and Packages | 179.8 | 268.4 | 49.3% | | Other Services | 55.2 | 38.1 | (30.9)% | | Total Adjusted Revenue | 980.0 | 1,894.9 | 93.3% | Expense Analysis Operating expenses increased in Q4 FY2023, driven by higher personnel costs, a surge in marketing and sales promotion, and increased other operating expenses - Personnel expenses increased 9.9% YoY to INR 279.4 million due to salary reinstatements and increased headcount[34] - Marketing and Sales Promotion expenses increased 320.7% YoY to INR 142.4 million[35] - Other operating expenses increased 48.5% YoY to INR 407.4 million, primarily due to higher commissions, legal charges, and provisions for doubtful receivables[36] Profitability and Other Items Q4 FY2023 saw a significant turnaround to a net profit of INR 7.5 million, improving from a prior-year loss, with Basic EPS at INR 0.10 - Net profit for Q4 2023 was INR 7.5 million, compared to a loss of INR 117.2 million in Q4 2022[45] - Basic EPS for Q4 2023 was INR 0.10, compared to a loss per share of INR 1.86 in Q4 2022[46] Liquidity and Debt Covenants As of March 31, 2023, the company held INR 1,091.0 million in cash, and successfully obtained waivers for debt covenant non-compliance post-period end - Cash and cash equivalents and term deposits stood at INR 1,091.0 million (USD 13.3 million) as of March 31, 2023[48] - The company was non-compliant with a debt covenant at year-end but obtained waivers from all lenders in May 2023, avoiding defaults. The covenant was subsequently renegotiated with Axis Bank Limited[49][51] Results of Year Ended March 31, 2023 Full fiscal year 2023 showed significant recovery, with revenue growing 92.4% to INR 3,827.3 million, a profit from operations, and a positive Adjusted EBITDA - Full-year profit from operations was INR 79.7 million, a 118.5% improvement from a loss of INR 431.5 million in FY2022[11][69] - Full-year net loss narrowed by 40.3% to INR 288.2 million from INR 482.5 million in FY2022[11][76] Revenue Analysis Full fiscal year 2023 total revenue grew 92.4% to INR 3,827.3 million, with broad-based growth across Air Ticketing and Hotels & Packages Full Year 2023 Adjusted Revenue by Segment (YoY) | Segment | FY 2022 (INR millions) | FY 2023 (INR millions) | YoY Change | | :--- | :--- | :--- | :--- | | Air Ticketing | 2,211.1 | 4,335.3 | 96.1% | | Hotels and Packages | 599.2 | 1,065.9 | 77.9% | | Other Services | 161.5 | 177.7 | 10.0% | | Total Adjusted Revenue | 3,302.4 | 6,153.1 | 86.3% | Expense Analysis Full fiscal year 2023 operating expenses increased due to higher personnel costs, a significant rise in marketing and sales, and increased other operating expenses - Personnel expenses increased 12.4% YoY to INR 1,148.4 million[64] - Marketing and Sales Promotion expenses increased 171.0% YoY to INR 336.5 million[65] - Other operating expenses increased 74.1% YoY to INR 1,555.0 million[66] Profitability and Other Items Full fiscal year 2023 saw a narrowed net loss of INR 288.2 million and a significant positive shift in Adjusted EBITDA to INR 422.9 million - Adjusted EBITDA for FY2023 was a profit of INR 422.9 million, a 166.0% increase from a loss of INR 159.0 million in FY2022[67] - Basic loss per share for FY2023 improved to INR 4.59 from INR 7.66 in FY2022[77] Non-IFRS Measures This section explains and reconciles the company's non-IFRS financial measures, providing alternative perspectives on performance Explanation of Non-IFRS Measures The company utilizes non-IFRS measures like Adjusted Revenue and Adjusted EBITDA to provide a clearer view of financial performance by excluding non-cash or non-recurring items - Adjusted Revenue is a key non-IFRS measure that adds back consumer promotion and loyalty program costs to Revenue, which management believes better reflects the value of services provided to customers[13][80][81] - Other non-IFRS measures like Adjusted EBITDA exclude non-cash or non-recurring items such as share-based compensation, impairment charges, listing expenses, and change in fair value of warrants to facilitate comparison of operating results[82][88] Reconciliation Tables Detailed reconciliation tables are provided, showing the conversion of IFRS measures to non-IFRS counterparts, such as Adjusted EBITDA and Adjusted Results from Operations Reconciliation of Profit/(Loss) for the period to Adjusted EBITDA (INR thousands) | Description | Year ended March 31, 2022 (INR thousands) | Year ended March 31, 2023 (INR thousands) | | :--- | :--- | :--- | | Profit/(Loss) for the period as per IFRS | (482,461) | (288,167) | | Add: Employee share-based compensation costs | 209,558 | 152,054 | | Add: Depreciation and amortization | 308,153 | 190,152 | | Add: Finance costs | 100,453 | 326,399 | | Add: Tax expense | 16,906 | 46,787 | | Add: Other adjustments (net) | 6,349 | 25,591 | | Less: Finance income | (47,816) | (28,944) | | Adjusted EBITDA | 158,958 | 422,872 | Reconciliation of Results from Operations to Adjusted Results from Operations (INR thousands) | Description | Year ended March 31, 2022 (INR thousands) | Year ended March 31, 2023 (INR thousands) | | :--- | :--- | :--- | | Results from operations (as per IFRS) | (431,473) | 79,666 | | Add: Employee share-based compensation costs | 209,558 | 152,054 | | Add: Impairment of loan to joint venture | 72,719 | 1,000 | | Adjusted Results from Operations | (149,196) | 232,720 | Reconciliation of Revenue to Adjusted Revenue (Full Year, INR thousands) | Description | Year ended March 31, 2022 (INR thousands) | Year ended March 31, 2023 (INR thousands) | | :--- | :--- | :--- | | Revenue (as per IFRS) | 1,989,376 | 3,827,265 | | Add: Customer promotional expenses | 1,313,621 | 2,842,455 | | Add: Other income | 158,648 | 152,520 | | Less: Service cost | (159,284) | (669,098) | | Adjusted Revenue | 3,302,361 | 6,153,142 | Consolidated Financial Statements This section presents the company's unaudited interim condensed consolidated financial statements, including the statement of profit or loss, financial position, changes in equity, and cash flows Statement of Profit or Loss For FY2023, the company reported increased revenue of INR 3,827.3 million, achieved a profit from operations, and significantly reduced its net loss attributable to owners Consolidated Statement of Profit or Loss (Year Ended March 31, INR thousands) | Description | 2022 (INR thousands) | 2023 (INR thousands) | | :--- | :--- | :--- | | Total revenue | 1,989,376 | 3,827,265 | | Results from operations | (431,473) | 79,666 | | Profit/(Loss) for the period | (482,461) | (288,167) | | Profit/(loss) attributable to Owners | (477,849) | (289,242) | | Basic Loss per share (INR) | (7.66) | (4.59) | Statement of Financial Position As of March 31, 2023, total assets increased to INR 6,736.6 million, while total liabilities also rose, leading to a decrease in total equity Consolidated Statement of Financial Position (As of March 31, INR thousands) | Description | 2022 (INR thousands) | 2023 (INR thousands) | | :--- | :--- | :--- | | Total assets | 5,464,574 | 6,736,643 | | Total current assets | 4,185,138 | 5,452,595 | | Total liabilities | 4,572,333 | 6,017,324 | | Total current liabilities | 4,184,270 | 5,746,760 | | Total equity | 892,241 | 719,319 | Statement of Changes in Equity Total equity decreased to INR 719.3 million for FY2023, primarily due to a comprehensive loss, partially offset by owner contributions - Total equity decreased from INR 892.2 million at the start of the fiscal year to INR 719.3 million at year-end[100] - The decrease in equity was driven by a total comprehensive loss of INR 297.6 million, which was partially offset by transactions with owners (e.g., share-based payments)[100] Statement of Cash Flows Net cash used in operating activities increased to INR 1,962.3 million in FY2023, offset by financing activities, resulting in a net decrease in cash and equivalents Consolidated Statement of Cash Flows (Year Ended March 31, INR thousands) | Description | 2022 (INR thousands) | 2023 (INR thousands) | | :--- | :--- | :--- | | Net cash flows (used in) operating activities | (972,203) | (1,962,346) | | Net cash flows (used in) investing activities | (86,536) | (145,952) | | Net cash flows from financing activities | 135,264 | 1,751,813 | | Net decrease in cash and cash equivalents | (923,475) | (356,485) | | Cash and cash equivalents at end of period | 800,282 | 503,601 | Operating Data This section provides key operating metrics for the fiscal year ended March 31, 2023, highlighting strong growth in air passengers, hotel room nights, and total gross bookings Key Operating Metrics Summary Key operating metrics for FY2023 showed strong growth, with air passengers up 51.1% and total gross bookings surging 96.5%, reflecting travel industry recovery Key Operating Metrics (Full Year YoY) | Metric (in thousands) | FY 2022 | FY 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Air Passengers Booked | 3,706 | 5,601 | 51.1% | | Stand-alone Hotel Room Nights Booked | 1,018 | 1,753 | 72.2% | | Packages Passengers Travelled | 10 | 21 | 109.2% | | Total Gross Bookings (INR millions) | 34,298 | 67,397 | 96.5% |