YATRA - YATRA ONLINE LIMITED Share Price

The management's outlook for Yatra Online Limited highlights sustained growth driven by strong performance in corporate travel, hotels, and MICE (Meetings, Incentives, Conferences, Exhibitions) segments. Key points include:

1. Revenue Growth: Q3 FY25 revenue rose 113% YoY to Rs.235 crore, with gross margin up 25% YoY to Rs.104 crore, driven by corporate travel and MICE.
2. Corporate Segment Strength: Added 50 new corporate clients (Rs.280 crore annual billing potential), leveraging cross-selling of hotels and packages. Adjusted EBITDA surged 75% YoY to Rs.17.5 crore.
3. MICE & Hotels Growth: Hotels gross bookings grew 83% YoY due to platform improvements, inventory management, and supplier partnerships.
4. Globe Travel Acquisition: Integration ahead of schedule, generating higher-than-expected synergies, enhancing profitability and supplier relationships.
5. B2C Stabilization: Air ticketing stabilized with focus on personal travel for corporate employees (22% YoY attach rate improvement). Cost-effective customer acquisition via B2C brand strength (Yatra.com recognized as a top brand mover by YouGov).
6. Tech & AI Initiatives: AI-driven expense management tool (RECAP) gaining traction as a cross-sell product. Back-end automation improving operational efficiency.
7. Macro Outlook: India's corporate travel market projected to double to $21 billion by 2030, supported by economic growth, infrastructure, and tech adoption. Bleisure (business + leisure) travel trends align with cross-sell opportunities.
8. Profitability Focus: Disciplined cost optimization, reduced debt (Rs.33 million), and strong liquidity (Rs.1.8 billion cash/term deposits). Plans to simplify corporate structure for tax efficiency.
9. Future Strategy: Prioritize high-margin corporate/MICE growth, cross-sell expense management solutions, and maintain cost discipline. Expect continued EBITDA and PAT improvement.

Management remains confident in sustaining momentum through strategic investments, operational efficiency, and market tailwinds.

Question: Sir, my first question is on your profitability trend, excellent number this quarter. So, do you foresee maintaining this current profitability trend? And what do you think if everything remains the same, you know macroeconomic condition remains the same or improves, there is no disruption, what could be the PAT that you should aspire or foresee in FY '25 and FY '26?

Answer: Dhruv Shringi highlighted consistent quarterly improvements in profitability due to recurring corporate travel revenue, optimized B2C discounting, and new customer implementations. He projected similar trends for Q4 and FY '26, driven by corporate client deployments and operational efficiencies, though refrained from specifying absolute PAT figures.

Question: Just trying to understand what has changed, let's say, compared to last year? I mean we are seeing good profitability, continuous growth in profitability and you are also suggesting that this trend would continue?

Answer: Key drivers include reduced B2C discounts, a favorable shift toward higher-margin corporate/Hotel & Packages segments, MICE business growth, and synergies from the Globe acquisition. Corporate mix (60% of business vs. 40% B2C) and operational efficiencies contributed to margin expansion.

Question: Sir, in the opening remarks, you had mentioned that competition or increased discounting from players like IndiGo was impacting our volumes. So how is the situation right now and in your view, how much volumes would have been impacted for us due to this issue?

Answer: B2C air volumes declined ~INR 300 crores/quarter due to supplier-direct pricing, but stabilized via corporate cross-sell and SEO efforts. Corporate growth (60% of air bookings) offsets B2C pressure, with further mix shifts toward B2B expected.

Question: For the 9 months, what would be our B2B and B2C mix in air?

Answer: B2B now constitutes ~60% of air bookings vs. 40% B2C, reversing last year's ratio. This shift is expected to continue with new corporate client deployments.

Question: Firstly, Dhruv, wanted to understand that you indicated that the take rate has come down in the air segment this time on a sequential basis. Given that 3Q is seasonally weak for your corporate business, which ideally has a lower take rate, then what is the reason for the take rate coming down on a sequential basis in the air business?

Answer: Take rate decline stemmed from higher average ticket prices (ATP) in Q3, as fixed convenience fees (e.g., INR 400/ticket) reduced percentage margins. No change in supplier terms"”seasonally elevated ATP diluted take rates optically.

Question: Secondly, just wanted to understand our growth outlook a little bit more going ahead... How do you see the growth in both individually B2B and B2C business and how should it translate to the overall growth level in both near term and medium term?

Answer: Corporate travel (25% growth) and B2C (10% growth) to drive ~20% overall growth. Gross margin (revenue less service cost) is the key metric, projected to rise 25% YoY via corporate/Hotels & Packages mix and MICE expansion.

Question: So, a couple of questions"¦ When do you see air beginning to turn the corner and start turning positive?

Answer: Air gross bookings to improve from Q4, driven by B2C stabilization and corporate rebound post-seasonal weakness. B2C growth (~10%) expected via tech optimizations and guerrilla marketing, avoiding heavy discounts.

Question: The second one was on Globe. If you could give some color on what parts of synergies have been achieved so far and what's sort of left to really play out?

Answer: ~60% revenue synergies (sourcing optimization) achieved ahead of schedule. Cost synergies (40%) from tech integration and facility optimizations will materialize post-April 2025 platform migration.

Question: Just wondering how many corporate clients have we onboarded since our IPO and cumulatively, what would be total billing potential for those we have onboarded?

Answer: 177 clients onboarded post-IPO, totaling ~INR 1,000 crores annual billing potential. Larger clients (6"“9 months ramp-up) and smaller ones (<6 months) expected to realize 70"“80% of potential within 12 months.