• Total Revenue: INR1,051 million (USD12.6 million), down 5% year over year.

• Adjusted Revenue: INR1,422 million (USD17.1 million), down 14% year over year.

• Adjusted EBITDA: INR65.6 million (USD800,000), down from INR115.4 million in the same period last year.

• Gross Bookings Decline: 17% year over year, with a 20% decline in air gross bookings.

• Adjusted Air Ticketing Margins: Decreased by 21% due to lower volumes.

• Corporate Customer Accounts: 34 new accounts with an annual billing potential of INR2,028 million (USD24.3 million).

• Marketing and Sales Promotion Expenses: Reduced by 25% year over year.

• Personnel Expenses: Increased by 23% year over year.

• Cash, Cash Equivalents, and Term Deposits: INR4.5 billion (USD54 million).

• Gross Debt: INR210 million (USD2.5 million), at an all-time low.

• Warning! GuruFocus has detected 5 Warning Signs with YTRA.

Release Date: August 13, 2024

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

Positive Points

• Yatra Online Inc (NASDAQ:YTRA) secured 34 new corporate customer accounts with an annual billing potential of approximately $24.3 million, showing strong growth in the corporate travel segment.

• The company is actively expanding its MICE (Meetings, Incentives, Conferences, and Exhibitions) business, which is expected to grow significantly in the coming quarters.

• Yatra Online Inc (NASDAQ:YTRA) is focusing on strategic investments in the corporate travel sector, including new products like Visa services and car rental services.

• The company has initiated a cost optimization program, which includes streamlining over 100 positions, expected to yield benefits starting in September.

• Yatra Online Inc (NASDAQ:YTRA) has a strong cash position with cash, cash equivalents, and term deposits of approximately USD54 million, and gross debt at an all-time low of USD2.5 million.

Negative Points

• Total revenue for the quarter ended June 30, 2024, was down 5% year over year, with adjusted revenue down 14% due to lower volumes in the B2C segment.

• Adjusted EBITDA decreased to approximately USD800,000 from USD115 million in the same period last year, partly due to lower volumes and increased expenses from new initiatives.

• The B2C segment faced challenges with a 21% decrease in adjusted air ticketing margins due to reduced volumes and intensified price competition.

• Yatra Online Inc (NASDAQ:YTRA) experienced a 17% year-over-year decline in gross bookings, primarily due to a 20% decline in air gross bookings.

• The company is facing increased customer acquisition costs in the B2C market due to deeply discounted fares offered directly by India's largest airline on its website and mobile app.

Q & A Highlights

Q: Could you provide more details on the options being considered by the independent committee and the expected timeline for decisions? A: Dhruv Shringi, Co-Founder & CEO, explained that the independent committee is evaluating options to simplify the corporate structure, with a focus on creating fungibility between shares. The timeline for achieving this is estimated to be 6 to 12 months, depending on regulatory approvals.

Q: What factors contributed to the B2C weakness, and are these issues temporary or permanent? A: Dhruv Shringi noted that the B2C weakness is due to supply constraints and IndiGo's strategy of offering cheaper fares directly on its website. While supply issues are temporary, the direct sales strategy could become a more permanent challenge.

Q: Can you elaborate on the MICE business contracts and their typical structure? A: Dhruv Shringi stated that MICE contracts are currently annual or event-based, rather than multiyear. As the business matures, they expect to secure more long-term contracts.

Q: How is the expense management solution progressing, and what is the expected timeline for revenue impact? A: Dhruv Shringi mentioned that the expense management solution is in a pilot phase with a few customers. Revenue from this initiative is expected to become material in the next fiscal year.

Q: Regarding potential acquisitions, what is the expected impact on the corporate business, and what is the timeline for completion? A: Dhruv Shringi indicated that they are evaluating multiple acquisition options, with approximately $20 million earmarked for this purpose. However, no specific timeline for completion was provided as discussions are ongoing.

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

This article first appeared on GuruFocus.