A deep dive on the profit of Yatra Q4 FY 2022

Yatra.com is an India Online travel company. It was incorporated on August 1, 2006. The company has its headquarter in Gurugram, Haryana, India. The products offered by this company include Flights, hotels, holidays, trains, buses. In the year 2021 yatra has entered into a partnership with with Oyo Rooms, Airbnb, and EasyMytrip to form the Confederation of Hospitality, Technology and Tourism Industry. It has 700 large corporate customers and one of India’s leading online travel companies. It can be operable at https://www.yatra.com.

Business Strategies

Yatra has launched a new meta search tool for corporate platform. The use of this tool has helped to increase the market share. This would help in  increasing the online bookings. Moreover the corporate would get the  options for their employees on a single screen, along with rates directly contracted with airlines and hotels. In the hotel front Yatra online has entered in partnership with Flipkart owned Cleartrip to source domestic hotel content from Yatra. The company anticipates that this partnership would double the hotel business over the next 12 months. The corporate travel relationship with both airlines and enterprise executive management has given  us a significant head start.

Challenges for Travel Industry

The impact of COVID has greatly impacted the travel industry. The impact of Delta and Omicron has hit the revenue. COVID vaccination is the game changer for the Travel Industry in 2021. But still there was a ban on international flights from India and restriction were imposed by several countries on travel. The Government of India has opened commercial and international flights effective 27th of March, which has helped to revive the international travel demand as well.

Financial Snapshots

INR in Thousand	Q4 FY21	Q4 FY22
Revenue	5,06,862	6,04,892
Adjusted Revenue	9,70,065	9,80,042
Adjusted EBITDA	92,097	52,897

Revenue for Q4 FY22 stood at INR 604.9 million. The Adjusted Revenue  declined 6.2% Q-O-Q and  increased 1% Y-O-Y. The Adjusted EBITDA stood at INR 52.9 million with  an increase of INR 8.9 million (USD 0.1 million) on a QoQ. However for FY 22, Revenue stood at INR 1,989.4 million. The Adjusted Revenue for FY 2022 increased by 50.7% to INR 3,302.4 million. Adjusted EBITDA incurred a  profit  of INR 159.0 million. Income tax expense during the year ended March 31, 2022 stood at INR 16.9 million.

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Segment Analysis

Air Ticketing-The Air Ticketing business in Q4FY22 decreased by 4.4% to  INR 321.6. On a sequential basis, Revenue from our Air Ticketing business  has declined by INR 2.4 million or 0.7% on a QoQ basis. Adjusted Revenue  from Air Ticketing business increased to INR 667.5 million. On a sequential basis, Adjusted Revenue for Air Ticketing declined by 8.1% on a QoQ to INR 59.0 million.

Hotels and Packages.-The Revenue from our Hotels and Packages business stood at INR 180.5 million for Q4 FY 2022. On a sequential basis the Revenue from Hotel and Packages business declined by INR 26.6 million. The Adjusted Revenue declined by (2.0%) to INR 179.8 million. On a sequential basis, Adjusted Revenue for this segment decreased by INR 31.0 million (USD 0.4 million), or 14.7%, on a QoQ basis.

Other Services- Income from Other Services was INR 50.5 million shows an improvement of INR 14.0 million. On a sequential basis, Other Services increased by 16.3% to INR 7.7 million. Adjusted Revenue for this segment increased by 166.0% to INR 55.2 million.

Liquidity Position  The company  has declined in terms of liquidity. The cash and cash equivalents and term deposits as per balance sheet is INR 1,368.5 million. The decline is mainly due to increase in working capital deployment due to the recovery of the corporate travel business.