Yatra(US:YTRA)2022-11-29 16:33Financial Data and Key Metrics Changes - The company reported adjusted revenue of INR 1.52 billion (approximately US$18.6 million), an increase of 92% year-over-year [9][20] - Adjusted EBITDA for the quarter was INR 77.7 million (approximately US$1 million), up 234% year-over-year [10][26] - Cash and cash equivalents as of September 30, 2022, were INR 703 million (approximately US$9 million), reflecting a decrease due to increased working capital needs [27] Business Line Data and Key Metrics Changes - Air Ticketing adjusted revenue increased by 110% year-over-year to INR 1 billion [20] - Hotels and Packages adjusted revenue rose 47% year-over-year to INR 240 million [21] - Gross bookings for Hotels and Packages improved 97% year-over-year, while gross air passengers booked were 1.27 million, up 41% year-over-year [22] Market Data and Key Metrics Changes - Domestic air travel volumes contracted by 10%, but the company's air tax volume declined only 2%, resulting in market share gains [11] - International travel improved gradually, exiting the quarter at approximately 70% of pre-COVID levels [13] - Domestic air passenger traffic reached 11.4 million in October, representing a 10% month-over-month increase [15] Company Strategy and Development Direction - The company plans to pursue new corporate business aggressively post-IPO, with a focus on both organic growth and potential M&A opportunities [30][31] - The upcoming Indian IPO is expected to strengthen the balance sheet and facilitate growth in corporate business [6][16] - The company aims to achieve growth above market rates due to share gains in the corporate travel market and the shift from offline to online in the consumer market [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about sustained growth in international travel and strong demand for leisure travel, indicating that elevated demand levels may become the new norm [51][54] - The company anticipates continued recovery in corporate travel and expects to see good operating leverage in expenses moving forward [35][36] - The macroeconomic environment is favorable, with India's GDP expected to grow at about 6.8% in fiscal 2023, supporting the travel industry's growth [15] Other Important Information - The company incurred higher legal costs of INR 24 million related to board expansion and IPO-related expenses, impacting adjusted EBITDA [10][26] - The company has raised an additional capital of $10 million from MAK Capital to support growth momentum [27] Q&A Session Summary Question: Plans for pursuing new corporate business post-IPO - Management indicated a strong pipeline for organic growth and plans for M&A, emphasizing the need for due diligence [30][31] Question: Headcount and OpEx outlook - Current headcount is about half of pre-COVID levels, with gradual increases linked to new corporate customers; operating expenses are expected to show good leverage [33][35] Question: Indian IPO market demand - The Indian market remains buoyant, with strong demand for quality offerings, and the company is optimistic about its IPO performance [36][37] Question: New enterprise clients and sales team scaling - The increase in new enterprise clients is driven by inbound demand rather than a significant expansion of the sales team [40] Question: Freight business expectations - The freight business is expected to recover rapidly, with projected revenue of US$5 million to US$6 million for fiscal 2024 [45] Question: Consumer demand trends - Demand for leisure travel remains high, with strong forward bookings for upcoming holiday seasons, indicating that elevated demand levels are likely to persist [51][54]