Yatra Online, Inc. (NASDAQ:YTRA) Q1 2021 Earnings Conference Call - Final Transcript
Sep 09, 2020 • 08:30 am ET
remain underutilized during the pandemic. Corporates also view EdTech as an employee retention tool.
On our Hotel Network front, we recently announced a partnership with Amazon India to provide our hospitality partners with a wide range of products catering to their varied needs. Hospitality partners can leverage the Amazon business marketplace as a one-stop destination to access a wide range of products across categories to cater to their needs and to sell products in a safe and efficient manner.
Now, a quick update on the litigation against Ebix as well. So, while I'm not at liberty to give any details of the litigation, I would just like to point out here that a large part of our legal costs for this litigation is linked to the outcome of the case and it's not a direct cash outflow for us at the moment. Additionally, neither are we dependent nor have we based our operational planning on a favorable outcome from the litigation.
Coming to our fiscal first quarter results; this quarter reflected bulk of the impact of the nationwide COVID lockdown in India, as travel was largely shut in the months of April and May, and only gradually began to open up in June.
In the June quarter, our adjusted revenue decreased by 86% to INR236.2 million or $3.1 million. Our adjusted EBITDA loss increased to INR309.4 million, which is approximately $4.1 million in the three-month ended 30th June, from adjusted EBITDA loss of INR205.8 million or about $2.7 million in the three months ended June last year. There was also an adverse impact of INR168.4 million or $2.2 million on our operating performance in the current quarter, due to legal and professional fees related to the merger transaction with Ebix. Some of these are one-time in nature and will be non-recurring. Excluding this, our adjusted EBITDA loss would have been INR141 million or $1.9 million for the quarter versus an adjusted loss of INR205.8 million or $2.7 million for the same quarter last year.
So, despite COVID, we've been able to -- on an ongoing basis -- drive improvement through cost control in our EBITDA loss.
Talking a bit more on the cost side; during the quarter, we focused our efforts on restructuring our costs, and significantly brought down our fixed cost run rate from approximately $2.7 million a month, in the month of March 2020, to approximately $1.2 million a month for the month of May 2020, through a combination of company-wide salary cuts ranging from 25% to 75% and renegotiation of contracts with our various service providers.
We believe our current liquidity position and optimized cost structure provides us with enough capital to withstand a prolonged slowdown, if it were to transpire in the travel industry.
As of June 30, 2020, the balance of cash and cash equivalents and term deposits on our balance sheet was INR3.675 billion or approximately $48.7 million. Since then, however, we have settled our ABB litigation and we have filed a 6-K for