Yatra(US:YTRA)2023-03-28 18:28Financial Data and Key Metrics Changes - The company reported a strong year-over-year growth of 43% in adjusted revenue, reaching INR 1,489 million (approximately $18 million) for the quarter [12][13] - Adjusted EBITDA for the quarter was INR 36 million (approximately $400,000), reflecting a decline due to higher legal and professional service costs [15] - Cash and cash equivalents increased to INR 1,083 million (approximately $13.1 million), up INR 380 million (approximately $4.6 million) from the previous quarter [19][28] Business Line Data and Key Metrics Changes - Adjusted air revenue increased by 39.2% year-over-year, with air gross bookings up 37% year-over-year [18] - Hotel adjusted revenue grew by 21% year-over-year, with standalone room nights up 16% [18][24] - Packages revenue increased by 41%, although from a small base, influenced by seasonality [19] Market Data and Key Metrics Changes - Domestic aviation saw a 17% year-over-year increase in air passenger traffic, with a 19% quarter-on-quarter growth [7] - International travel improved to approximately 88% of pre-COVID levels, following the easing of restrictions [17] - The Indian government's commitment to infrastructure spending in aviation is expected to support long-term growth [6][9] Company Strategy and Development Direction - The company is focused on expanding its corporate travel services, having signed a record number of 72 medium to large corporate customers in the first nine months of the fiscal year [11][12] - The establishment of a wholly-owned subsidiary in Dubai aims to expand the software platform for corporate travel in the Middle East and Africa [23] - The company anticipates continued growth driven by the recovery in both corporate and leisure travel sectors [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing recovery in the travel sector, with strong demand in both corporate and consumer markets [11][31] - The macroeconomic environment in India remains robust, with GDP growth projected at around 6.8% for fiscal 2023 [10] - The company expects adjusted revenue for the March 2023 quarter to range between INR 1,650 million to INR 1,700 million (approximately $19.5 million to $20.5 million), indicating a sequential growth rate of 10% to 14% [22] Other Important Information - The company raised INR 300 million in debt for working capital requirements and secured additional facilities totaling INR 902 million from domestic banks [20][21] - The company noted that marketing and sales promotion expenses increased by 53% year-over-year, reflecting the seasonal nature of the business [26] Q&A Session Summary Question: Insights on market share gains in corporate travel - Management highlighted the signing of 72 new customers and noted increased awareness among organizations to adopt technology for business travel needs [29][30] Question: Impact of macro environment on corporate travel - Management reported no signs of slowdown in corporate travel, with strong demand and economic activity in India remaining robust [31] Question: Discussion on personnel expenses and hiring - Management indicated that personnel expenses increased due to reinstated salaries and annual increases, with minimal impact expected on overall cost structure [32][33] Question: Timeline for new customers to contribute to revenue - Management stated that new customers typically take 90 to 120 days for implementation, with significant contributions expected in subsequent quarters [36][37] Question: Expectations for the logistics business in 2023 - Management noted a slowdown in logistics due to global shipping rate declines and challenging export conditions [51] Question: Commentary on debt issuance and cash balance - Management confirmed the issuance of INR 300 million in debt and highlighted the increase in cash balance, which supports working capital needs [52][53]