Yatra Online Limited ((IN:YATRA)) has held its Q3 earnings call. Read on for the main highlights of the call.
During Yatra Online Limited’s latest earnings call, the sentiment was mixed but generally positive. The company showcased substantial growth in key areas such as revenue, corporate travel, and hotel bookings, signaling robust brand recognition in the market. However, this optimism was tempered by challenges including a decrease in air travel volumes and a rise in personnel expenses, painting a balanced picture of achievements and hurdles.
Significant Revenue Growth
Yatra reported a remarkable revenue from operations totaling INR 2.35 billion, marking an impressive 113% increase compared to the previous year. This significant growth reflects the company’s successful strategic initiatives and its ability to capitalize on market opportunities.
Corporate Travel Segment Expansion
The corporate travel segment witnessed substantial expansion, with Yatra onboarding a record 50 new corporate clients. These new clients offer an annual billing potential of INR 2.8 billion, reinforcing Yatra’s leadership position in the corporate travel sector.
Hotel and Packages Segment Performance
Yatra’s hotel and packages segment demonstrated notable growth, with gross bookings up by 83% year-over-year. The segment’s adjusted margin also saw an increase of 65.8%, showcasing effective operational strategies and customer engagement.
Adjusted EBITDA Surge
The company’s adjusted EBITDA saw a significant surge, increasing by 173% year-over-year to INR 121.5 million. This surge underscores the effectiveness of Yatra’s operational efficiencies and strategic focus.
Brand Recognition
Yatra’s efforts in brand building were recognized as it was named one of India’s biggest brand movers by YouGov in December 2024. This recognition highlights Yatra’s strong market presence and brand value.
Air Travel Volume Decline
Despite the overall growth, Yatra faced a decline in air travel volumes, with gross bookings totaling INR 1.8 billion, reflecting a 3.4% year-over-year decrease. This decline was primarily driven by reduced air travel volumes in the B2C segment.
Air Ticketing Margin Decline
The air ticketing segment experienced a decline in adjusted margins by 23% year-over-year, attributed to lower gross bookings and a reduction in the headline take rate, indicating challenges in this core area.
Increased Personnel Expenses
Personnel expenses increased by 34% year-over-year, influenced mainly by the acquisition of Globe and the annual appraisal cycle, affecting the company’s overall cost structure.
Forward-Looking Guidance
Yatra provided robust guidance for future growth, expecting a 113% year-over-year increase in revenue from operations for the quarter ending December 31, 2024, driven by strong performance in their Hotels and Packages segment and Corporate Travel segment. The integration of Globe is ahead of schedule, positively impacting profitability. Despite B2C challenges, Yatra anticipates growth through improved personal travel rates, enhanced platform features, and strategic supplier relationships. Investments in AI technology and expense management are expected to support sustained growth and shareholder value.
In summary, Yatra Online Limited’s earnings call reflected a balanced sentiment of strong achievements and challenges. With significant growth in revenue and key segments, alongside strategic initiatives, the company is poised for future expansion. However, declines in air travel volumes and increased personnel costs present areas for improvement. Yatra’s forward-looking guidance suggests continued growth, leveraging strategic partnerships and technological advancements.