TBO Tek Limited — Investor Meet, 18-02-2025: Analysts/Institutional Investor Meet/Con. Call Updates

1. Financial Performance: TBO Tek has shown robust financial results with a 26% increase in Gross Transaction Value (GTV) to Rs. 7,166 Cr. This growth led to a 29% rise in revenues, reaching Rs. 422.2 Cr, and a 34% increase in gross profit. Adjusted EBITDA for the quarter stood at Rs. 75 Cr, reflecting a 26% YoY increase, with the EBITDA margin at 17.77%. However, profit after tax (PAT) saw a slight dip of 1.6% to Rs. 50 Cr, attributed to forex losses.

2. Future Outlook and Growth Drivers: Management highlighted continued growth in the hotel and ancillary services segment, which expanded by 48% YoY, bolstered by strategic investments in AI and geographic expansion. The company's growth strategy focuses on driving engagement through improvements in service offerings and technological enhancements to the platform.

3. Order Book and Operational Updates: TBO is aggressively expanding into new markets, having established a presence in 15 new countries, and is focused on operational efficiencies alongside its growth trajectory. The Indian market is expected to solidify its share with the launch of a Platinum desk program catering to top agents.

4. Analyst Q&A Insights (Detailed):

- Revenue and Profitability: Analysts inquired about the sustainability of high growth rates. Management expressed confidence in sustaining 30% growth through new market penetration and enhanced customer engagement.

- Market Position and Competitive Landscape: There was discussion on India's slower growth compared to international markets. Management clarified that the Indian market is nearing saturation for monthly transacting buyers, whereas international expansions are still in early stages.

- Operational Challenges or Risks: Supply chain stresses and forex volatility were addressed, with management emphasizing adaptive strategies and natural hedging to manage risks.

- Capex and Capital Allocation: Management is focused on reinvesting profits into growth initiatives rather than prioritizing short-term margins.

- Strategic Priorities and Long-Term Vision: Analysts highlighted the shift towards premium offerings, reflecting confidence in the high-value outbound travel segment.

5. Market or Regulatory Updates: High currency volatility has impacted forex positions, resulting in losses, prompting management to revamp hedging strategies.

6. Strategic Focus Areas: A clear emphasis on technology adoption, market penetration, and improved customer engagement suggests TBO Tek is poised for continued growth, with management maintaining an optimistic outlook amid current challenges.

7. Investor Insight: The company’s strong performance and strategic initiatives suggest a favorable position for future growth. A "buy" position may be warranted given the robust growth in GTV and revenue, although caution is urged due to geopolitical uncertainties and forex impacts. Continued investments in technology and geographic expansion solidify the long-term growth narrative.