Easy Trip Planners Limited — Investor Meet, 19-11-2024: Analysts/Institutional Investor Meet/Con. Call Updates

1. **Financial Performance:** Easy Trip Planners reported gross booking revenue of INR 2,076 cr in Q2 FY2025. Revenue from operations witnessed a 2% year-on-year increase to INR 145 cr. EBITDA was INR 42 cr with an impressive EBITDA margin of 28%, while profit after tax (PAT) stood at INR 26 cr, reflecting a PAT margin of 17.9%. Despite a significant year-on-year decline in PAT compared to INR 46 cr last year, the company achieved strong operating cash flow of INR 58 cr during the quarter.

2. **Future Outlook and Growth Drivers:** Management emphasized expanding the Non-Air segment and international operations as key growth strategies. Development in the hotel and holiday packages division demonstrated a remarkable 178% growth year-on-year, reaching INR 241 cr in gross booking revenue. Increasing presence in Dubai and a focus on expanding key markets signal a robust growth trajectory.

3. **Order Book and Operational Updates:** The hotel segment recorded 2.2 lakh bookings, a 75% year-on-year increase, while the trains, buses, and others segment saw 2.8 lakh bookings. Recent initiatives included the launch of India's first metasearch engine, ScanMyTrip, and the inauguration of new offices and franchisee locations, reflecting ongoing operational enhancement.

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

- **Revenue and Profitability:** Management attributed the PAT decline to increased operational costs related to new subsidiaries and higher marketing spending, which rose by INR 11 cr due to several promotional initiatives.

- **Market Position and Competitive Landscape:** Analysts queried about stagnant share prices amid growing business expansion. Management explained that market dynamics remain out of their control, but the company continues to focus on achieving sustainable profitability.

- **Operational Challenges or Risks:** Increased competition led to price discounts impacting revenue. Management anticipates a return to normality as these market conditions evolve.

- **Capex and Capital Allocation:** The company plans to finance its electric vehicle initiatives predominantly through loans, expecting to utilize about INR 312 cr in free cash reserves.

- **Strategic Priorities and Long-Term Vision:** Analysts probed the balance between the ticketing business and new ventures such as electric vehicle manufacturing. Management acknowledged air ticketing as the principal revenue contributor in the near term but prepared for long-term diversification.

5. **Market or Regulatory Updates:** Notable partnerships were established during the quarter, including a collaboration with PhonePe, and a commitment to sustainable tourism by signing an MOU with the Uttar Pradesh Ecotourism Development Board.

6. **Strategic Focus Areas:** The call highlighted a commitment to innovation, geographical expansion, and a sustainable approach to the travel and mobility markets, with ongoing efforts to diversify offerings.

7. **Investor Insight:** Despite recent challenges reflected in profit margins and share performance, the overall financial health and strategic initiatives suggest potential for resilience and growth. Investors may consider a ‘hold’ position while monitoring developments, particularly in operational efficiencies and market response to new business ventures.