Yatra(US:YTRA)2023-05-30 15:04Financial Data and Key Metrics Changes - The company reported a year-over-year revenue growth of 97.4% and adjusted revenue growth of 93.3% for Q4 FY '23, reaching INR1.19 billion (approximately $14.5 million) and INR1.89 billion (approximately $23.1 million) respectively, exceeding previous guidance [5][8] - Adjusted EBITDA for the quarter increased by 251% year-over-year to INR185.6 million (approximately $2.3 million) [9][31] - For the full fiscal year 2023, adjusted revenue was INR6.2 billion, reflecting an 86% growth year-over-year [33] Business Line Data and Key Metrics Changes - The air ticketing segment saw a 119% increase in adjusted revenue to INR1.5 billion, driven by a 53% rebound in air passenger traffic [27] - The hotels and packages segment reported a 49% increase in adjusted revenue to INR268 million, with booked room nights growing by 34% [28] - Gross bookings for hotels and packages doubled year-over-year, indicating strong corporate uptake [28] Market Data and Key Metrics Changes - Domestic passenger traffic in India grew by 4.6% sequentially, while the company's domestic passenger traffic grew by 33% sequentially [6] - International travel reached approximately 90% of pre-COVID levels, with expectations for brisk recovery as restrictions are lifted [10][16] - The Indian government's commitment to airport infrastructure includes an investment of approximately $3.3 billion through FY '26, with over 70 projects projected for completion by mid-2024 [18][19] Company Strategy and Development Direction - The company aims to leverage its strong brand and market share gains in both consumer and corporate travel segments to drive future growth [5][6] - The ongoing IPO process for Yatra India is expected to enhance the company's financial position and facilitate strategic partnerships [11][14] - The company is focusing on innovation in AI and data sciences to accelerate corporate sales growth [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing recovery in corporate and leisure travel, expecting strong performance in FY '24 with adjusted revenue guidance of $88 million to $92 million [21][23] - The company anticipates adjusted EBITDA growth of 46% to 50% in FY '24, benefiting from operational leverage and cost control measures [23] - Management noted that the competitive landscape remains stable, allowing for continued market share growth [46] Other Important Information - The company has created a one-time provision of INR39 million against amounts due from Go Air, which filed for bankruptcy [26] - As of March 31, 2023, the company had cash and cash equivalents of INR1.09 billion (approximately $13.3 million) [20][35] Q&A Session Summary Question: Dynamics of hotel and package revenue growth - Management noted that while hotel and package revenue grew 49% year-over-year, it lagged behind air ticketing growth due to longer implementation cycles for corporate customers [36][37] Question: Historical percentage of international revenue - Historically, international revenue was around 25% to 30% pre-COVID, but currently it is less than 20% [39][40] Question: Confidence in maintaining operating expense controls - Management expressed confidence in maintaining cost controls due to automation efforts and changes in consumer behavior towards self-booking [42][43] Question: Margin differences between business and leisure revenue streams - Corporate business margins are expected to be in the high teens to 20% range, while B2C margins are in the high single digits [45] Question: IPO timing and investor engagement - The company is actively engaging with investors and plans to resume discussions following the release of financial results, with a deadline for the IPO set for November 16, 2023 [47][66] Question: Market share gains in air travel - Market share gains are attributed to brand strength and new online distribution channels, with expectations for continued growth [50][51] Question: Strategic partnerships post-IPO - Management indicated potential for strategic partnerships with Indian corporates post-IPO, although no specific opportunities were detailed [61][62]