Breakeven On The Horizon For Yatra Online, Inc. (NASDAQ:YTRA)

Breakeven On The Horizon For Yatra Online, Inc. (NASDAQ:YTRA)

With the business potentially at an important milestone, we thought we'd take a closer look at Yatra Online, Inc.'s (NASDAQ:YTRA) future prospects. Yatra Online, Inc. operates as an online travel company in India and internationally. The company's loss has recently broadened since it announced a ₹289m loss in the full financial year, compared to the latest trailing-twelve-month loss of ₹316m, moving it further away from breakeven. Many investors are wondering about the rate at which Yatra Online will turn a profit, with the big question being "when will the company breakeven?" We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

See our latest analysis for Yatra Online

According to some industry analysts covering Yatra Online, breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of ₹758m in 2025. So, the company is predicted to breakeven just over a year from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 207% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth
NasdaqCM:YTRA Earnings Per Share Growth February 20th 2024

We're not going to go through company-specific developments for Yatra Online given that this is a high-level summary, though, keep in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we'd like to point out is that The company has managed its capital prudently, with debt making up 11% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Yatra Online which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Yatra Online, take a look at Yatra Online's company page on Simply Wall St. We've also put together a list of important factors you should further research:

  1. Historical Track Record: What has Yatra Online's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Yatra Online's board and the CEO's background.

  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.