Release Date: August 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Easy Trip Planners Ltd (BOM:543272, Financial) reported a 34.9% increase in EBITDA, reaching INR 50.6 crores for Q1 FY25.
- Revenue from operations grew by 23% year-on-year, totaling INR 152.6 crores.
- The company achieved a 116% year-on-year increase in gross booking revenue for hotels and holiday packages, amounting to INR 210 crores.
- Dubai operations saw a remarkable 139.2% year-on-year increase in gross booking revenue, reaching INR 126.7 crores.
- Strategic partnerships with Google Wallet and Adani Digital Lab aim to enhance customer experience and offer seamless services.
Negative Points
- Revenue from the Air segment decreased from INR 111 crores to INR 107 crores year-on-year.
- The company faces competitive pressures from airlines offering lower pricing on direct channels.
- There is a noted decrease in the take rates for the Air segment, impacting revenue.
- Marketing expenses are expected to vary between 0.7% to 1.1% of gross booking revenue, which could impact profitability.
- The company is planning a capital raise of INR 2,000 crores, which may dilute existing shareholders' equity.
Q & A Highlights
Q: What is the INR 10 crore revenue mentioned in the notes?
A: This revenue comes from providing marketing services to one of our customers. (Ashish Bansal, CFO)
Q: Why has the Air Segment revenue decreased while EBITDA increased?
A: The growth in EBITDA is primarily due to our Hotel and Holidays segment and Dubai expansion. The decrease in Air Segment revenue is due to lower take rates, but there are no supply side constraints. (Prashant Pitti, Managing Director)
Q: How do you view competitive pressures from airlines offering lower prices on direct channels?
A: We do not see significant pressure from domestic airlines. Our diversification into international operations and non-air segments is mitigating any potential impact. (Prashant Pitti, Managing Director)
Q: What is the nature of the engagement that results in a consistent INR 100 million revenue recognition each quarter?
A: We will consider providing more details about this engagement in the next quarter. (Prashant Pitti, Managing Director)
Q: What are your plans regarding the INR 2,000 crore capital raise?
A: We have board approval and plan to utilize this capital raise in the next couple of months. Details will be shared after board presentation. (Prashant Pitti, Managing Director)
Q: How does EaseMyTrip differentiate itself from competitors in the OTA market, especially in the Air segment?
A: We provide superior customer service through our own call center, chat, and email support, leading to high customer loyalty and repeat transactions. (Prashant Pitti, Managing Director)
Q: Is there a deliberate effort to prioritize profitability over market share?
A: Yes, we are focusing on profitability and diversifying our business. Losing some market share in the short term does not impact our long-term strategy. (Prashant Pitti, Managing Director)
Q: What is the nature of your partnership with ONDC?
A: Details will be revealed in the next couple of weeks. The partnership will provide significant advantages despite ONDC's democratizing nature. (Prashant Pitti, Managing Director)
Q: Is there a strategy to increase the share of the hotel and holiday segment?
A: Yes, we aim to grow our non-air business to 25% of total business in the next couple of years through both organic and inorganic approaches. (Prashant Pitti, Managing Director)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
