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Yatra(YTRA) - 2025 Q3 - Earnings Call Transcript
YTRAYatra(YTRA)2025-02-11 17:48
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Financial Data and Key Metrics Changes - For Q3 FY 2025, the company reported revenue from operations of INR 2.35 billion, representing a year-over-year increase of 113% [5] - Revenue less service costs (gross margin) grew 25% year-over-year to INR 1.04 billion [6] - Adjusted EBITDA surged 75% year-over-year, reaching INR 121.5 million, marking a substantial 173% year-over-year increase [10][23] Business Line Data and Key Metrics Changes - The Corporate Travel segment showed significant growth, onboarding 50 new corporate clients with an annual billing potential of INR 2.8 billion (approximately 32.2million)[7]−TheHotelsandPackagessegmentsawarobustyear−over−yearadjustedmarginincreaseof65.832.2 million) [7] - The Hotels and Packages segment saw a robust year-over-year adjusted margin increase of 65.8%, with hotel gross bookings up 83% [8] - Adjusted margins for the Hotels and Packages segment surged to INR 438 million (approximately 5.1 million), an increase of 66% year-over-year [25] Market Data and Key Metrics Changes - The overall MICE business in India is expected to be between 8billionto8 billion to 10 billion annually, with the organized sector accounting for only about 15% [33] - The corporate travel market in India is projected to double by 2030 to 20.8billion,drivenbyeconomicgrowthandtechnologyadvancements[17]CompanyStrategyandDevelopmentDirection−ThecompanyisfocusedonexpandingitsHotelandPackagesandMICEbusinesstodiversifyrevenuestreamsandenhancecorporatetravelsolutions[20]−TheintegrationoftheacquiredcompanyGlobeisprogressingaheadofschedule,generatingpositivesynergiesandstrengtheningsupplierrelationships[8]−Thecompanyisactivelyengagingwithadvisersandregulatorstostreamlineoperationsandenhanceshareholdervalue[15]Management′sCommentsonOperatingEnvironmentandFutureOutlook−Managementexpressedconfidenceinsustaininggrowthinhigh−marginbusinesseswhileimprovingprofitability[20]−DespitecompetitivepressuresintheB2Csegment,thecompanyhasstabilizedvolumesinitsairbusinessandisencouragedbythemomentumincorporatetravel[11][19]−Thecompanyanticipatesincrementalgainsmovingforwardduetoimprovedattachratesforpersonaltravelbookingstocorporateclients[13]OtherImportantInformation−ThecompanymaintainsastrongliquiditypositionwithcashandtermdepositstotalingINR1.89billion(approximately20.8 billion, driven by economic growth and technology advancements [17] Company Strategy and Development Direction - The company is focused on expanding its Hotel and Packages and MICE business to diversify revenue streams and enhance corporate travel solutions [20] - The integration of the acquired company Globe is progressing ahead of schedule, generating positive synergies and strengthening supplier relationships [8] - The company is actively engaging with advisers and regulators to streamline operations and enhance shareholder value [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth in high-margin businesses while improving profitability [20] - Despite competitive pressures in the B2C segment, the company has stabilized volumes in its air business and is encouraged by the momentum in corporate travel [11][19] - The company anticipates incremental gains moving forward due to improved attach rates for personal travel bookings to corporate clients [13] Other Important Information - The company maintains a strong liquidity position with cash and term deposits totaling INR 1.89 billion (approximately 22 million) as of December 31, 2024 [29] - Marketing and sales promotion costs declined by 32% year-over-year due to optimized spending in the B2C segment [26] Q&A Session Summary Question: Can you give an indication of the MICE market size and its growth potential? - Management indicated that the MICE market in India is highly fragmented, with the organized sector accounting for only about 15% of the overall business, which is expected to be between 8billionto8 billion to 10 billion annually [33] Question: How long does it take to ramp up a corporate client relationship once onboarded? - For larger accounts (over 5million),ittypicallytakes6to9monthstorampup,whilesmalleraccounts(under5 million), it typically takes 6 to 9 months to ramp up, while smaller accounts (under 5 million) can go live within 3 to 6 months [35][36] Question: What was Globe India's revenue contribution during the quarter? - While not specified separately, Globe's revenue last year was approximately $5.4 million [38] Question: Any updates on the timeline for the Board's work on potential legal structure? - Management reported meaningful progress over the last 3 months and is hopeful for a concrete resolution in the near future [40]