Yatra(YTRA) - 2025 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - For Q1 2025, total revenue was INR1,051 million (approximately $12.6 million), a decline of 5% year-over-year [3][7] - Adjusted revenue was INR1,422 million (approximately$ 17.1 million), down 14% year-over-year [7] - Adjusted EBITDA decreased to INR65.6 million (approximately $800,000) from INR115.4 million in the same period last year [5][14] - Gross bookings declined by 17% year-over-year, primarily due to a 20% decline in air gross bookings [13] Business Line Data and Key Metrics Changes - Air ticketing margins were impacted by a 21% decrease due to lower volumes, particularly in the B2C segment [3] - Corporate travel segment showed robust growth, securing 34 new corporate customer accounts with an annual billing potential of INR2,028 million (approximately$ 24.3 million) [3][4] - MICE business made substantial progress, with early signs of significant business secured for the September quarter [4][10] Market Data and Key Metrics Changes - Travel volumes in the IT sector were approximately 30% below pre-COVID levels, while industry reports indicated a nearly 50% decline in overall IT services spends [8] - The MICE market is valued at approximately $3.3 billion in 2023 and is expected to grow to$ 10.5 billion by 2030, reflecting a CAGR of 18% [10] - India's business travel market is projected to reach $38 billion this year, growing by 18% next year [11] Company Strategy and Development Direction - The company aims to position itself as the corporate provider of choice while regaining B2C market share through tech-enabled strategies [7] - A cost optimization program is being initiated, including streamlining over 100 positions [6] - The company is exploring both organic and inorganic opportunities to expand its corporate business [6] Management's Comments on Operating Environment and Future Outlook - Management highlighted challenges in the B2C segment due to supply constraints and competitive pricing from airlines [19][20] - The corporate travel segment is expected to benefit from a strong economic outlook, with real GDP growth projected at 7.2% in FY '25 [11] - Management remains optimistic about the growth potential in the corporate travel and MICE segments despite current challenges [12] Other Important Information - The company is carrying cash and cash equivalents of INR4.5 billion (approximately$ 54 million) and gross debt at an all-time low of INR210 million (approximately $2.5 million) [14] - A restructuring committee is actively working on proposals to streamline operations and enhance shareholder value [6] Q&A Session Summary Question: Options regarding the independent committee and timeline for decisions - Management is evaluating multiple options for simplifying corporate structure, with a timeline of six to twelve months for full simplification [15][16] Question: Impact of B2C weakness on revenue - The decline is attributed to supply constraints and competitive pricing from airlines, particularly Indigo [18][19] Question: MICE business contract structures - Current contracts are mostly annual or event-based, with potential for multi-year contracts as the business stabilizes [21] Question: Percentage of airline business that is B2C - B2C accounted for approximately 50-60% of gross bookings last year, making it a significant part of the business [24] Question: Potential acquisitions and revenue size - The company has set aside approximately$ 20 million for acquisitions, which could be for one or multiple deals [32][33] Question: Buyback of U.S. shares - There is no cap on the buyback amount; future evaluations will determine if the buyback needs to be expanded [49]