Yatra(US:YTRA)2023-10-16 17:03Financial Data and Key Metrics Changes - Revenue for Q1 2024 was reported at INR 1.106 billion (approximately $13.5 million), up 23% year-over-year [14] - Adjusted EBITDA for the quarter reached INR 115.4 million (approximately $1.4 million), slightly lower than the previous year [14] - Gross bookings increased to INR 19.8 billion (approximately $241 million), registering a year-over-year growth of 11% [23] - Total adjusted margin from all segments combined increased by 30.5% year-over-year to INR 1.5 billion (approximately $18.3 million) [26] Business Line Data and Key Metrics Changes - Revenue from the Air Ticketing business increased by 30% year-on-year to INR 490 million (approximately $6 million) [24] - Revenue from the Hotel and Packages business increased by almost 16% year-on-year to INR 452 million (approximately $5.5 million) [25] - Revenue from Other Services decreased by 43.8% year-on-year to INR 26.7 million [26] Market Data and Key Metrics Changes - Domestic passenger traffic grew 6% year-over-year, outpacing the industry growth of 3% [15] - Year-to-date from January to September 2023, the Indian domestic market registered a growth of 29.1% with 112.8 million passengers [16] - International travel has reached approximately 90% of pre-COVID levels, showing steady improvement [10][16] Company Strategy and Development Direction - The funds from the recent IPO are earmarked for strategic investments, acquisitions, technology advancement, and customer acquisition [6] - The company aims to leverage its strong brand and market position to capture a larger share of the corporate travel market [11][20] - The management is focused on expanding its corporate customer base and enhancing its SaaS offerings [31] Management's Comments on Operating Environment and Future Outlook - The Indian economy is expected to grow by 6.3% in both 2023 and 2024, supporting the travel industry's growth [11] - The aviation industry is projected to double its fleet over the next five years, with air passenger numbers expected to exceed 400 million annually in the next decade [12] - Management remains optimistic about leveraging positive trends in travel demand to drive growth [10][20] Other Important Information - The company successfully concluded its Indian IPO of INR 7.75 billion (approximately $93 million) [5] - The current market cap of the Indian entity is approximately INR 23.15 billion (approximately $280 million) [8] - The company ended the quarter with gross debt of INR 2.4 billion (approximately $29 million) and cash equivalents of INR 1.1 billion (approximately $13.5 million) [29] Q&A Session Summary Question: Can you provide insights on the acquisition environment? - Management is interested in acquiring offline corporate travel businesses and SaaS-based technology solutions to enhance margins and service offerings [31] Question: What is the current market share in corporate travel? - The company has expanded its customer base by about 15% since pre-COVID, indicating a gain in market share [32] Question: How should operating expenses be viewed moving forward? - Operating expenses are expected to see low single-digit to mid-single-digit increases, remaining largely consistent with past quarters [33] Question: When will the new corporate customers reach their billing potential? - The timeline to reach the full run rate for new customers is approximately six months, expected by the January to March quarter of 2024 [35] Question: What are the parameters for stock buybacks? - The Board is considering stock buybacks and will update shareholders in the near term [40]