• Revenue: INR2.35 billion, a year-over-year increase of 113%.
• Gross Margin (Revenue less Service Cost): INR1.04 billion, up 25% year over year.
• Adjusted EBITDA: INR121.5 million (USD1.4 million), a 173% year-over-year increase.
• Gross Bookings: INR1.8 billion (USD211 million), a 3.4% decline year over year.
• Corporate Clients Onboarded: 50 new clients, adding an annual billing potential of INR2.8 billion (USD32.2 million).
• Hotels and Packages Segment Growth: 81% year-over-year increase.
• Adjusted Margin - Air Ticketing: INR858 million (USD10 million), down 23% year over year.
• Adjusted Margin - Hotels and Packages: INR438 million (USD5.1 million), up 66% year over year.
• Marketing and Sales Promotion Costs: Declined by 32% year over year.
• Personnel Expenses: Increased by 34% year over year.
• Other Operating Expenses: Increased by 9% year over year.
• Cash and Term Deposits: INR1.89 billion (USD22 million).
• Gross Debt: INR33 million, below USD50 million.

• Warning! GuruFocus has detected 4 Warning Signs with YTRA.

Release Date: February 11, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Yatra Online Inc (NASDAQ:YTRA) reported a significant year-over-year revenue increase of 113%, reaching INR2.35 billion.
• The company's gross margin grew by 25% year over year, driven by strong performance in the hotels and packages segment.
• Yatra Online Inc (NASDAQ:YTRA) onboarded a record 50 new corporate clients, adding an annual billing potential of INR2.8 billion.
• The integration of the recently acquired company, Globe, is progressing ahead of schedule, contributing positively to profitability.
• Adjusted EBITDA surged by 75% year over year to INR12.1 million, highlighting the success of strategic initiatives and operational efficiency.

Negative Points

• Gross bookings declined by 3.4% year over year, primarily due to reduced air travel volumes in the B2C segment.
• The air ticketing segment experienced a 23% year-over-year decline in adjusted margin, attributed to low gross bookings and a reduction in headline take rate.
• Marketing and sales promotion costs decreased by 32% year over year, indicating potential challenges in maintaining customer engagement.
• Personal expenses increased by 34% year over year, driven by the full-quarter impact of the Globe acquisition and annual appraisals.
• Other operating expenses rose by 9% year over year, primarily due to the business combination effect and the acquisition of Globe.

Q & A Highlights

Q: Can you provide insights into the size and potential of the MICE market in India? A: MICE in India is a highly fragmented market, with the organized sector accounting for only about 15% of the overall business. The total MICE market is estimated to be between $8 billion to $10 billion annually, offering significant long-term growth opportunities as we expand our presence in this sector. - Dhruv Shringi, CEO

Q: How long does it take to ramp up a corporate client relationship once onboarded? A: For accounts exceeding $5 million annually, the ramp-up is phased, typically taking six to nine months to reach full potential. Smaller accounts, in the $2 million to $4 million range, usually go live within three to six months. - Dhruv Shringi, CEO

Q: What was Globe India's revenue contribution during the quarter? A: While we don't disclose this separately, Globe's revenue less service cost last year was approximately $5.3 million. - Dhruv Shringi, CEO

Q: Is there any update on the timeline for the Board's work on potential legal restructuring? A: We have made meaningful progress over the last three months with appropriate counsel in different jurisdictions. We hope to present something more concrete in the near future. - Dhruv Shringi, CEO

Q: Can you elaborate on the strategic focus and performance of the hotels and packages segment? A: The hotels and packages segment saw an 81% year-over-year growth, driven by the expansion of our MICE segment and improved cross-selling initiatives. This has strengthened customer engagement and increased wallet share. - Rohan Mittal, CFO

For the complete transcript of the earnings call, please refer to the full earnings call transcript.