Yatra’s Earnings Call: Strong Growth Amid Challenges

Yatra ((YTRA)) has held its Q1 earnings call. Read on for the main highlights of the call.

Yatra’s latest earnings call revealed a strong financial performance, marked by significant revenue growth and improved profitability. The company demonstrated resilience despite facing challenges in the air ticketing segment and B2C bookings, which were impacted by external macroeconomic factors. Regulatory hurdles also persist, particularly in the share conversion process.

Strong Revenue Growth

Yatra reported an impressive revenue of INR 2.098 billion (USD 24.5 million), reflecting a substantial 99.7% increase year-over-year. This remarkable growth underscores the company’s robust business strategies and market presence.

Improved Profitability

The company’s profit for the quarter reached INR 110 million (USD 1.3 million), a significant turnaround from a loss of INR 0.8 million (USD 0.1 million) in the same quarter last year. This improvement highlights Yatra’s effective cost management and operational efficiency.

Adjusted EBITDA Surge

Yatra’s adjusted EBITDA surged by 214% year-over-year to INR 206 million (USD 2.4 million), far exceeding the annual guidance of 30% growth. This surge is indicative of the company’s strong operational performance and strategic focus.

Successful Client Onboarding

The company successfully onboarded 34 new corporate clients, adding an annual billing potential of INR 2 billion. This expansion in the corporate travel segment is a testament to Yatra’s growing influence and capability in the market.

Technological Advancements

Yatra launched its AI assistant, DIYA, and improved its user interface to enhance customer service and booking experiences. These technological advancements are aimed at providing a seamless experience for users and maintaining a competitive edge.

Reduced Debt

The company significantly reduced its gross debt to INR 29 million (USD 0.3 million) from INR 546 million (USD 6 million), reflecting its strong financial management and commitment to reducing liabilities.

Air Ticketing Volume Decline

Yatra faced a 9% year-over-year decline in air ticketing passenger volumes, highlighting the challenges in this segment due to external factors.

B2C Business Impact

The B2C bookings saw a marginal decline year-over-year, affected by macroeconomic events such as cross-border tensions and an air crash, which have impacted consumer confidence and travel behavior.

Regulatory Challenges

The company continues to face complexities in restructuring and converting U.S. shares into Indian shares, with unresolved issues and unclear timelines posing challenges.

Forward-Looking Guidance

Yatra’s forward-looking guidance remains optimistic, with the company reporting robust financial performance and significant growth potential in the corporate travel market. The corporate travel segment is expected to grow substantially, offering opportunities for digital adoption. The company also increased its cash reserves to INR 2,235 million (USD 26 million) while sharply reducing gross debt, positioning itself well for future growth.

In conclusion, Yatra’s earnings call highlighted a positive sentiment with strong financial performance and strategic advancements. Despite facing challenges in certain segments, the company’s robust growth, improved profitability, and technological innovations position it well for future success.