Yatra(US:YTRA)2022-04-01 17:19Financial Data and Key Metrics Changes - Adjusted revenue for Q3 2022 was INR 1,044.9 million (approximately $14 million), representing a 33% increase quarter-over-quarter and a 72% increase year-over-year [11] - Adjusted EBITDA improved by 89% quarter-over-quarter to INR 44 million (approximately $600,000) [13] - The cash balance at the end of the quarter was approximately $21 million, with a significant increase in working capital due to the recovery in corporate business [14][15] Business Line Data and Key Metrics Changes - Air passengers booked increased by 40% year-over-year and 41% sequentially in the December quarter [12] - Hotel room nights were up more than 72% year-over-year and about 18% sequentially [12] - The corporate travel segment is recovering strongly, with volumes reaching about 75% of pre-COVID levels by March 2022 [16] Market Data and Key Metrics Changes - Domestic air travel volumes exceeded 83% of pre-COVID levels, indicating a strong recovery in the travel industry [17] - The mass vaccination program in India has led to over 825 million people (60% of the population) being fully vaccinated, facilitating the reopening of international travel [19] Company Strategy and Development Direction - The company is exploring options for an IPO in India, which is expected to enhance strategic flexibility and shareholder value [9][10] - A strategic partnership with Flipkart and Cleartrip was signed to source domestic hotel content, expected to drive incremental volume and strengthen relationships with hotel partners [18] - The freight business is anticipated to grow significantly, with expected revenues of $4 million to $5 million in fiscal year 2023 [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery in both leisure and business travel, with expectations to meet or exceed pre-COVID levels within the calendar year [19][23] - The company noted that operational efficiencies gained during the pandemic would lead to higher profitability and cash flow [24] - Management highlighted the importance of adapting to a hybrid work environment, which has increased demand for automated travel solutions [41] Other Important Information - The company plans to begin management roadshows in India towards the end of April and aims to complete the IPO by the end of summer 2022 [10] - The competitive intensity in the market has risen moderately, but the company's brand continues to resonate positively with Indian travelers [16] Q&A Session Summary Question: Are you seeing benefits from market share gains in corporate travel? - Management noted early signs of recovery, with corporate travel volumes reaching 75% of pre-COVID levels in March, and expressed optimism for strong recovery in the upcoming months [28] Question: Is the company adequately staffed to meet increased demand? - Management indicated that hiring has occurred primarily in corporate travel, with minimal headcount expansion on the consumer side due to backend automation [29][30] Question: What is the expected cash breakeven level for the company? - Management stated that cash breakeven is expected to occur at quarterly revenues between $18 million to $20 million [46] Question: What are the capital allocation priorities post-IPO? - Management highlighted priorities including growth in freight and corporate travel, increased consumer marketing, and technology investments [42] Question: What EBITDA margins are expected at $100 million in revenue? - Management anticipates EBITDA margins between 15% to 20% at the $100 million revenue level, supported by strong corporate travel uptake and technology adoption [53]