Yatra(YTRA)2024-11-13 21:09Financial Data and Key Metrics Changes - For Q2 2025, total revenue reached INR 2.36 billion, a year-over-year increase of 151%, driven by strong performance in Hotels and Packages and MICE segments [5][12] - Adjusted EBITDA for the quarter was INR 66.7 million, reflecting a 91% increase year-over-year [26] - Gross bookings remained stable at INR 17.7 billion, with air gross bookings declining by 10% to INR 13.3 billion, while Hotels and Packages gross bookings increased by 68% to INR 3.37 billion [23][24] Business Line Data and Key Metrics Changes - The Hotels and Packages segment saw gross bookings increase by 68% year-over-year, attributed to strong corporate hotel performance and MICE business [24] - The Corporate Travel segment demonstrated significant growth, onboarding 29 new corporate clients with an annual billing potential of INR 1.2 billion [6][7] - The MICE segment showed robust growth, with expectations of continuing double-digit growth over the next few years [28] Market Data and Key Metrics Changes - The corporate travel sector in India is experiencing significant growth, supported by a favorable economic outlook from the Reserve Bank of India, which forecasts a growth rate of 7.2% for fiscal year '25 [20][21] - The MICE segment is increasingly being invested in by companies, leading to a surge in demand for related services [19] Company Strategy and Development Direction - The acquisition of Globe Travels is expected to enhance Yatra's customer base and market position in corporate travel, with anticipated synergies of INR 60 million per year [7][11] - Yatra aims to leverage technology to optimize operations and enhance customer experience, particularly through the integration of new distribution capabilities [15] - The company is focused on expanding its presence in the corporate travel market while exploring growth opportunities in the direct-to-consumer segment [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the corporate travel business momentum and the value creation expected from the Globe acquisition [22] - The company acknowledges challenges in the B2C segment but remains focused on improving operating performance and customer acquisition [16][29] Other Important Information - The expense management solution, RECAP, is progressing well, with potential for significant scaling both domestically and internationally [13] - The company has launched a revamped user experience on its website and mobile apps, which has received encouraging initial responses [17] Q&A Session Summary Question: Integration process with Globe Travels and cross-selling opportunities - Management indicated that supply integration steps have been taken, with technology implementation expected to start yielding cross-selling benefits from early January [27] Question: Opportunities in MICE and growth expectations - Management sees significant cross-selling opportunities within the existing customer base and expects MICE growth at 20-25% over the next 2-3 years [28] Question: Price competition in the B2C business - Management noted that price competition was initiated by a major airline and is likely to persist, emphasizing the need to add value through cross-selling [29] Question: Status of fungibility between US and Indian stocks - Management is actively working with regulators to simplify the process, which is a priority area [30] Question: Q3 performance expectations - Management clarified that while Q3 is strong for B2C, it is typically weaker for corporate travel due to holidays [31]