Yatra Online Limited — PPTs, 18-03-2025: Investor Presentation

1. Financial Performance: Yatra Online reported a revenue from operations of INR 2,353 million in the latest quarter, marking a significant 113% increase year-over-year. Gross margins grew by 25% YoY to INR 1,041 million, while the company achieved an adjusted EBITDA of INR 175 million, up 75% YoY, reflecting a strong focus on cost optimization. Net profit surged 845% YoY to INR 100 million, resulting in a PAT margin of 4%. Diluted EPS stood at INR 0.64, an 811% increase from the previous year.

2. Future Outlook and Growth Drivers: Management emphasized plans to strengthen their corporate travel segment through the integration of Globe All India Services Limited. They anticipate growth from the Meetings, Incentives, Conferences, and Exhibitions (MICE) segment, alongside exploring opportunities in the consumer travel market.

3. Order Book and Operational Updates: During the quarter, Yatra secured 50 new corporate accounts with billing potential of INR 2,804 million, enhancing its position in the corporate travel space. The acquisition has expanded its corporate customer base by 40%.

4. Analyst Q&A Insights (Detailed):

- **Revenue and Profitability**: Analysts sought clarifications on margin sustainability; management indicated a commitment to maintaining profit levels through ongoing efficiency initiatives.

- **Market Position and Competitive Landscape**: Inquiry about competitors led management to assert confidence in Yatra's market leadership due to technology integration and customer retention strategies.

- **Operational Challenges or Risks**: Analysts raised concerns over supply chain dynamics, which management addressed with assurances of their robust operational frameworks.

- **Capex and Capital Allocation**: Discussions pointed to a prudent capital allocation strategy, with reduced debt levels and a focused growth approach in technology investments.

- **Strategic Priorities and Long-Term Vision**: Management highlighted ambitions for expansion in tier II and III markets while enhancing service offerings to existing clients.

5. Market or Regulatory Updates: The company noted the fragmented nature of the corporate travel market, emphasizing the shift towards organized solutions driven by GDP growth and GST implementation.

6. Strategic Focus Areas: Yatra's growth strategy hinges on enhancing its technology platform, expanding service offerings while upholding strong corporate governance. They focus on cross-selling domestically and potential international scaling.

7. Investor Insight: The financial health signals solid growth potential, potentially aligning with a 'buy' position. Given the robust upward trends in revenue and profits alongside operational expansion, Yatra appears poised to leverage emerging growth dynamics, though investor sentiment should consider market fluctuations and competitive pressures.