Yatra ((YTRA)) has held its Q4 earnings call. Read on for the main highlights of the call.
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Yatra’s recent earnings call highlighted a robust financial performance, marked by substantial revenue growth and strategic expansions in the corporate travel and MICE sectors. The company demonstrated effective integration of advanced technology and received significant industry accolades. Despite challenges in the B2C Air business and geopolitical tensions, the overall sentiment was positive, reflecting optimism about the company’s future prospects.
Significant Revenue Growth
Yatra reported impressive revenue figures for FY’25, with annual revenues reaching INR7.9 billion (approximately USD93.1 million), representing a 90% increase year-over-year. The fourth quarter alone saw revenues of INR2.2 billion (approximately USD25.7 million), marking a 114% year-over-year growth. This significant revenue surge underscores the company’s strong market position and effective growth strategies.
Increased Profitability
The company’s profitability also saw a notable increase, with adjusted EBITDA for FY’25 rising by 28% and adjusted profit soaring by 106.5% year-over-year to INR24 million. These figures reflect Yatra’s ability to enhance operational efficiency and capitalize on market opportunities effectively.
Expansion in Corporate Travel
Yatra’s corporate travel segment expanded significantly in FY’25, securing 148 new clients and contributing to INR7.5 billion in expected annual volumes. This expansion highlights the company’s strategic focus on growing its corporate client base and enhancing service offerings.
MICE Business Growth
The MICE (Meetings, Incentives, Conferences, and Exhibitions) business experienced substantial growth, handling over 600 trips and serving more than 80,000 travelers in FY’25. This growth, coupled with margin expansion, underscores Yatra’s strong foothold in the MICE sector.
Integration of Advanced Technology
Yatra became one of the first travel management companies in India to integrate new distribution capabilities, enhancing booking experiences and achieving cost savings for corporate travelers. This technological advancement positions Yatra as a leader in innovative travel solutions.
Accolades and Recognitions
The company received accolades from major airlines such as Singapore Airlines, Air Canada, and Etihad Airways, recognizing Yatra as a top travel partner in India and the Asian region. These recognitions affirm Yatra’s strong industry reputation and service excellence.
B2C Air Business Decline
Despite overall positive performance, Yatra faced challenges in the B2C Air business, with gross bookings declining by 6% in Q4. However, stabilization efforts through optimization have been implemented to address this decline.
Geopolitical Challenges
Geopolitical tensions between India and Pakistan impacted travel demand, temporarily affecting both leisure and corporate travel. Yatra is actively working to mitigate these challenges and adapt to changing market conditions.
Forward-Looking Guidance
Looking ahead, Yatra projects a 20% growth in revenue less service cost and a 30% growth in adjusted EBITDA for FY’26. The company plans to drive this growth through expansions in corporate travel and the MICE sector, leveraging its Globe Travels acquisition and integrating AI technologies to enhance customer experience and operational efficiency.
In conclusion, Yatra’s earnings call conveyed a positive outlook, driven by significant revenue growth, increased profitability, and strategic expansions. Despite facing some challenges, the company’s forward-looking guidance suggests continued growth and innovation in the travel industry.