Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| Adjusted margins were up across air, hotel, package and other services, with the air ticketing business up by 10% YoY to INR1.1 billion, while the hotel and package business adjusted margin was up by 4% YoY to INR264 million, which is roughly USD3.2 million |
| Yatra's air passenger segment recorded a robust 26% year-over-year growth, nearly tripling the industry benchmark of 9% |
| We are proud to report strong December quarter results |
| Furthermore, our adjusted EBITDA saw an improvement of 24% year-over-year, reaching INR44.5 million or approximately USD 500,000 |
| So while in the first half of our fiscal year of last year, international travel lagged behind in the last quarter, which is the December quarter, international travel has gained momentum and is carrying forward that same momentum into the current quarter |
| In the air travel sector our strong brand recognition and successful strategies in capturing market share has enabled us to grow both our domestic and international air business |
| As we move forward, we remain optimistic and committed to leveraging these positive trends to drive further growth and success |
| So we should continue to see good momentum on international travel |
| Certainly International travel actually improved quite meaningfully in the last quarter |
| Given our stronger balance sheet following the IPO, we've already begun to see early signs of improving supplier margins and expect this to gain further momentum in the quarters ahead and have a meaningful positive impact on our operating performance going forward |
| Aside from seasonality and some softness that I touched upon earlier in the ITES sector, we expect our results to benefit from accelerating growth in both our corporate business and consumer business as we continue to add to a formidable blue chip customer base and leverage the strength of our brand |
| With the positive macro backdrop, and given the ongoing recovery in corporate and leisure travel, and the rise in discretionary spending and now a significantly bolstered balance sheet, we believe we are well poised for the strong FY '24 and '25 |
| This move underlines our confidence in Yatra's promising future and our unwavering dedication to maximizing shareholder value |
| India's economic landscape remains particularly robust, buoyed by a significant public capital expenditure initiative and a strong domestic economy |
| The Indian economy is poised for consistent growth, with projections now revised upwards estimating 7% GDP growth in FY '24 |
| On this front, the government has done significant amount of work to improve the infrastructure and we expect that this improvement in infrastructure will continue to drive upward growth in traffic numbers to these destinations |
| Adjusted margin from other services was also up by 49% YoY |
| We fortified our market leadership in the corporate travel sector by finding 26 new corporate customers in the December quarter with an annual billing potential of INR2.2 billion, which is approximately USD27 million |
| Domestic air passenger traffic continued on its coaching growth pace in India and continues to remain the fastest growing air market globally |
| This multiproduct and multi-region deal highlights the capabilities and strengths of our platform and the ability to handle any level of complexity with our cutting edge technology |
| This points to significant headroom for growth in the Indian travel market |
| For the December quarter, our total revenue grew by 23% to INR1.1 billion, which is roughly USD13.4 million on account of sustained travel demand |
| This makes it the fourth quarter in a row of share gains for Yatra |
| This underlines the capability and leadership of our corporate travel SaaS platform |
| We are taking that a step further and as a gratitude to our Indian shareholders, we have offered that subscription free to our shareholders in India, expanding the shareholder base and the base for our Prime customers |
| We are confident, however, of the recovery in the near-term from our largest contributing sector, especially as AI related software developments take root globally |
| So we've seen strong recovery happening on the international side in the last quarter, and there is more capacity expansion that's happening on the international front |
| Our gross booking for the quarter was INR18.6 million, which is roughly USD224 million, up by 18% YoY, with air up by 22%, and the hotels and packages up by 4% YoY |
| For the quarter ended December 31, 2023, we reported revenues of INR1.1 billion, which is approximately USD13.4 million, marking a substantial increase of 23% over the last year |
| Our adjusted margin from air ticketing rose to INR1.1 billion, which is USD13.4 million, a 10.2% year-over-year growth |
| Statement |
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| Moving on to further details of the quarter, the corporate segment continues to be somewhat impacted with softness and travel spends in the IT/ITES sector |
| The marketing increase lacked the overall gross bookings growth of 18%, which shows a strong boundary call of Yatra |
| So for the next two quarters, there is going to be a bit of pricing increase, which we will see, and that may have a slight bit of softening or that may result in a slight bit of softening in demand |
| So there is a little bit of pricing headwind which is there, and we expect this to carry on till about the summer months and it is only around the July-August time frame that we see the capacity beginning to come back into the ecosystem |
| I mean, it seems like that's been a bit of a laggard versus corporate and leisure travel just in catching up since COVID |
| And this withdrawal of capacity in the current quarter is likely to see a slight increase in airfares |
| I'm just curious given the severe dislocation between where the U.S |
| We've reduced this by almost 51% at a gross level on a quarter-on-quarter basis |
| In addition, we expect that the new business that we have won over the last few quarters is more than likely to offset the drop that we have seen on account of softness in the IT/ITES sector in the coming quarters |
| First one, I may have missed it in the prepared remarks drew, but can you comment a little bit on some of those pricing headwinds that you saw in the second quarter and how they impacted the third quarter and maybe what the outlook is for the fourth quarter on those? Rohan Mittal So, in terms of pricing headwind, what we've seen is that during the quarter, the overall macro industry has remained fairly robust, but there is an expectation that on the domestic aviation side, we will see some capacity constraint and capacity being pulled out by one of the largest in India for repair of their Pratt & Whitney engines |
| We've also seen some of the international airlines bring back a little bit of their capacity into the Indian market on the back of the demand, which is there |
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