Yatra Online Limited — Investor Meet, 20-11-2024: Analysts/Institutional Investor Meet/Con. Call Updates

1. **Financial Performance**: Yatra Online reported total revenue of ₹236 crores, experiencing a remarkable year-over-year increase of 151%. Excluding the recent acquisition of Globe Travels, organic revenue growth was an impressive 121%. The adjusted EBITDA for the quarter stood at ₹13.6 crores, up 29% year-over-year, with a return to profitability as net profit came at ₹7.3 crores, a significant turnaround from a loss of ₹17.1 crores in the prior year. The gross bookings displayed strong growth too, particularly in the hotel and package segment, which rose 68% year-over-year, while air ticketing faced a 10% decline.

2. **Future Outlook and Growth Drivers**: Management emphasizes continued growth in corporate travel, buoyed by the strong performance of the MICE business. The integration of Globe Travels is expected to enhance Yatra's market position significantly and deliver synergy benefits. Management aims for adjusted operating margins to improve from 15% currently to approximately 20% over the next three quarters, driven by increased scale and efficiency.

3. **Order Book and Operational Updates**: The acquisition of Globe added 360 new corporate clients, with an annual billing potential of ₹120 crores. This not only strengthens Yatra's corporate travel portfolio but also provides opportunities for cross-selling. Management has highlighted an ongoing focus on technological enhancements and the introduction of their corporate self-booking platform to offset previous costs.

4. **Analyst Q&A Insights (Detailed)**:

- **Revenue and Profitability**: Analysts queried the underlying profitability, with management noting the significance of analyzing revenue less service costs to understand true operating margins. They are optimistic about future profitability, indicating operational leverage could enhance margins moving forward.

- **Market Position and Competitive Landscape**: Inquiries surrounding competitive pressures revealed that, while challenges persist in consumer segments, corporate travel volumes are strong, indicating robust demand.

- **Operational Challenges or Risks**: Management acknowledged legal and consulting costs related to the Globe acquisition but anticipates these to decrease moving forward, allowing for improved operating leverage.

- **Capex and Capital Allocation**: Healthy cash reserves of ₹210 crores with minimal debt provide Yatra with the flexibility to invest in growth initiatives and manage operational expenses.

- **Strategic Priorities and Long-Term Vision**: There’s a clear focus on expanding the share of the corporate segment within overall revenues and enhancing service offerings through tech partnerships.

5. **Market or Regulatory Updates**: The favorable macroeconomic environment, buoyed by robust economic growth expectations in India, alongside advancements in corporate travel technology, continues to positively influence demand dynamics.

6. **Strategic Focus Areas**: Management's strategic focus includes deepening engagement in the corporate travel landscape and expanding MICE services. Efforts are also directed toward leveraging technology for operational efficiencies.

7. **Investor Insight**: Considering Yatra's robust financial turnaround, accelerated growth in corporate travel, and strategic acquisition benefits, the overall perspective leans positively, indicating potential for sustained upward momentum. The observed performance suggests a favorable position that may align with a ‘buy’ stance, particularly as margins and profitability are poised for improvement in coming quarters.