Yatra ((YTRA)) has held its Q3 earnings call. Read on for the main highlights of the call.
Yatra’s recent earnings call was a blend of optimism and caution, as the company celebrated substantial revenue growth while acknowledging certain challenges. The overall sentiment was positive, with significant achievements in corporate travel and MICE segments, along with strong brand recognition and liquidity. However, concerns about declining air travel volumes and rising personnel expenses were also highlighted.
Record Revenue Growth
Yatra reported a remarkable milestone with revenue from operations reaching INR 2.35 billion, marking a 113% increase year-over-year. This substantial growth underscores the company’s robust performance and strategic execution in capturing market opportunities.
Corporate Client Expansion
The company fortified its leadership in the corporate travel segment by onboarding 50 new corporate clients, representing an annual billing potential of INR 2.8 billion. This expansion is a testament to Yatra’s strong value proposition and market leadership.
Synergies from Globe Acquisition
The acquisition of Globe in September 2024 is already proving fruitful, with integration progressing ahead of schedule. The resultant synergies are positively impacting Yatra’s profitability, highlighting the strategic value of this acquisition.
Hotels and Packages Growth
Yatra’s strategic focus on the Hotels and Packages segment paid off, as adjusted margins grew 65.8% year-over-year. Moreover, hotel gross bookings surged by 83%, indicating strong demand and effective market penetration.
Adjusted EBITDA Increase
The earnings call highlighted an impressive 173% year-over-year increase in adjusted EBITDA to INR 121.5 million. This surge was driven by cost optimizations and a strategic focus on higher-margin segments, reinforcing Yatra’s operational efficiency.
Brand Recognition
Yatra’s brand strength was underscored by its recognition as one of India’s biggest brand movers by YouGov. This accolade reflects noteworthy gains in brand awareness and consumer engagement, crucial for long-term growth.
Strong Liquidity Position
Maintaining a solid financial footing, Yatra reported cash and term deposits totaling INR 1.89 billion, ensuring a robust liquidity position that supports future growth initiatives.
Decline in Air Travel Volumes
Despite the overall positive performance, Yatra experienced a 3.4% decline in gross bookings due to reduced air travel volumes in the B2C segment. This decline poses a challenge to be addressed in future strategies.
Decreased Air Ticketing Margins
The company faced a 23% decrease in adjusted margin for air ticketing, attributed to lower gross bookings and reduced headline take rates, presenting another area for strategic focus.
Increased Personnel Expenses
Personnel expenses, including ESOP costs, increased by 34% year-over-year. This rise was primarily due to the Globe acquisition and the annual appraisal cycle, indicating an area needing careful management.
Forward-Looking Guidance
Yatra’s forward-looking guidance remains optimistic as the company continues to focus on expanding high-margin business segments and leveraging strategic initiatives for sustained growth. The integration of Globe is expected to continue contributing positively, while the strong liquidity position supports future endeavors.
In conclusion, Yatra’s earnings call reflected a largely positive outlook with significant revenue growth and strategic expansions. While challenges like declining air travel volumes and increased personnel costs persist, the company’s robust liquidity and strategic initiatives indicate a promising path forward.