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Easy Trip Planners Limited Earnings Call Summary
Financial Performance • Record EBITDA: INR 228 crores for FY2024. • Revenue Growth: 40% year-on-year increase in revenue from operations to INR 164 crores in Q4. • Gross Booking Revenue (GBR): Reached INR 8,513 crores, with a 16% increase in profit before tax to INR 215 crores.
Strategic Initiatives • Non-Air Segment Growth: Significant increase in hotel bookings. • Partnerships: Collaborations with Punjab National Bank and the Ministry of Rural Development. • Insurance Sector Expansion: Entry into insurance broking with an asset-light model.
Fundraising Plans • Qualified Institutional Placement (QIP): Approval for up to INR 1,000 crores to support inorganic growth and marketing.
Management Insights • Profitability Focus: Emphasis on profitability over market share. • Growth and Margins: Commitment to profitability despite slight GBR decline; improvements in cash flow noted. • Future Guidance: No specific growth guidelines for FY2025, but focus on maintaining a healthy bottom line.
Acquisitions and Financial Disclosures • Recent Acquisitions: Some are currently loss-making but show promising growth potential. • Financial Transparency: Plans to share financials of acquired entities once they mature.
Market and Operational Strategy • Franchise Operations: Third-party managed to enhance offline presence. • Non-Air Business Growth: Significant growth in this segment despite airline industry challenges. • Ongoing International Operations: Willingness to provide more detailed segment performance metrics in the future.
Future Acquisition Plans • Potential Acquisitions: Open to acquiring additional stakes in previously acquired companies, pending Board approval. • Targeted Growth Strategy: Focus on profitable, asset-light, and internet-driven businesses in the travel sector.
Easy Trip Planners Limited Earnings Call Summary
Date and Context • Date of Call: February 9, 2024 • Transcript Release: February 14, 2024 • Focus: Unaudited financial results for Q3 and nine months ending December 31, 2023
Key Financial Highlights • Gross Booking Revenue (GBR): INR 2,026 Crores for Q3 • Operational Revenue: 18% year-on-year increase to INR 161 Crores • Profit After Tax (PAT): 9.6% rise to INR 45.6 Crores • Growth in Air Travel Bookings: Significant increase reported
Strategic Initiatives • New Partnerships: Stake in Eco Hotels and collaboration with Uttarakhand government to enhance tourism • Focus on Profitability: Emphasis on expanding service offerings
Analyst Inquiries and Management Responses • Transaction Numbers: Clarified by Prashant Pitti to include hotel bookings and packages • Equity Shares: No change in total shares despite acquisitions, explained by Ashish Bansal • Cash Flow Concerns: Attributed to increased deposits with airlines due to growth • Impact of Acquisitions: Employee costs and other expenses rose; EBITDA not disclosed but expense levels expected to stabilize
Future Outlook • Profit Before Tax (PBT) Guidance: Potential shortfall of 25-30 Crores due to unexpected acquisition expenses • App Downloads: Significant increase attributed to nationalistic marketing strategy • Depreciation and Amortization: Expected to remain a recurring cost over five years • Market Position: Confidence in maintaining second position despite GBR decline
Conclusion • Revised PAT Outlook for FY2024: Adjusted PBT from approximately 250 Crores to around 220 Crores • Management's Optimism: Positive outlook on growth trajectory and strategic opportunities • Call Closure: Encouragement for further questions and gratitude expressed by the moderator
Easy Trip Planners Limited Earnings Call Summary (Q2 and H1 FY2024)
Financial Highlights • Q2 Results: • Gross Booking Revenue (GBR): INR 2,025 crores • Profit After Tax (PAT): INR 47.2 crores (67% YoY increase) • Adjusted Revenue: INR 212 crores (25.7% growth) • EBITDA: INR 67.7 crores (68.1% increase, 46.8% margin)
• H1 Results: • Total Revenue from Operations: INR 265 crores (35.5% increase) • PAT: INR 73 crores (19.3% increase)
Strategic Focus • Shift towards profitability over mere GBR growth. • Profit Before Tax (PBT) target set at INR 250 crores for FY2024. • Key initiatives include: • Acquisitions for market expansion. • Partnerships to enhance customer services.
Management Insights • GBR growth expectations for FY24: 20-25%. • Experiment with convenience fees leading to increased discounts and PAT. • Reduction in payment gateway charges due to UPI adoption.
Marketing and Revenue Insights • Marketing expenses to be evaluated quarterly based on profitability. • Recent increase in hotel package revenue attributed to higher bookings and reduced discounts. • Hotel segment reported 90% growth in the past half-year.
Q&A Highlights • Receivables from GoAir: INR 72 crores; recovery hopeful but write-off decisions pending. • Hotel Segment Contribution: Significant growth and focus on profitability. • Marketing Expenses: Decreased to 0.7%, expected to remain between 0.7% and 1%. • Collaboration with SpiceJet: Contributed to higher take rates.
Closing Remarks • Emphasis on balancing profitability with GBR growth. • Optimism about sustainable performance and commitment to financial targets.
Easy Trip Planners Limited Earnings Call Summary (August 14, 2023)
Company Overview • Announcement Date: August 16, 2023 • Quarter Ending: June 30, 2023 • Key Executives Present: • Prashant Pitti (Co-Founder) • Nishant Pitti (Co-Founder) • Ashish Bansal (CFO) • Nutan Gupta (COO) • Rajat Gupta (Investor Relations)
Financial Highlights • Gross Booking Revenue: INR 2,371 Crores (43% increase YoY) • Adjusted Revenue Growth: 47% • EBITDA: INR 38 Crores • Profit After Tax (PAT): INR 26 Crores • Challenges: Loss in hotel segment and airline incentives
Strategic Initiatives • Acquisitions: Three acquisitions to expand service offerings • Customer-Centric Focus: Emphasis on brand-building and collaborations • General Sales Agreement: Signed with Spicejet to enhance services
Q&A Session Insights • Hotel Segment Performance: Increased bookings but revenue growth limited due to discounts. • Growth in Other Services: Yolo Bus business contributed INR 9 Crores. • Gross Booking Revenue Target: Aiming for INR 16,000 Crores in FY2024, including inorganic growth. • Profitability of Acquisitions: All three recent acquisitions are profitable, focusing on group travel. • UK Expansion: Facing typical market entry challenges but optimistic due to UAE success. • Receivables from Go First: Outstanding amount of INR 71 Crores; write-offs considered after 180 days. • Acquisition Costs: Totaled INR 65 Crores, evaluated based on PE analysis. • Cross-Selling Opportunities: Successful cross-selling with a 123% growth in hotel bookings. • International Revenue Projection: Expected to contribute at least 25% to total revenue.
Stakeholder Engagement • Promoter Stake: 25% reduction, remaining around 65%, with no further plans to decrease. • Market Performance: Outperformed the market through strategic discounts. • Future Outlook: Optimistic about travel demand and financial performance, focusing on customer satisfaction and growth opportunities.
Easy Trip Planners Limited Earnings Call Summary
Call Overview • Date: May 30, 2023 • Discussion of audited financial results for FY2023 (ending March 31, 2023) • Key executives present: Co-founders Prashant and Nishant Pitti, senior management • Forward-looking statements included, with risks and uncertainties • Results and presentations available on stock exchange and company website
Industry Growth • Indian travel industry grew significantly in FY2023 • Passenger numbers increased by 62% to 136 million • Air travel surpassed pre-COVID levels • India projected to be the third-largest air passenger market by 2024
Company Performance • Record gross booking revenue: INR 8050.6 Crores (116.7% increase from FY2022) • Adjusted revenues grew by 68.6% • Successful expansion into Dubai with INR 100 Crores in gross booking revenue • Strong profitability: EBITDA of INR 191 Crores, PAT of INR 134 Crores
Strategic Initiatives • Commitment to customer service through EMT Royale program and partnerships • Focus on international expansion targeting higher average ticket sizes • Plans to introduce additional insurance products for customers
Financial Projections • Projected GMV growth of over 50% for the upcoming year • Expected EBITDA margin of 45-46%, down from 58.8% in the previous year • Stable take rate between 8.2% and 8.7%
Challenges and Concerns • Decline in hotel segment revenue and performance of recent acquisitions • Outstanding receivables from GoAir (INR 69 Crores) • User experience issues on the website compared to competitors
Closing Remarks • Emphasis on analyzing financial performance based on Gross Booking Revenue (GBR) • Confidence in achieving 50% growth in GBR while maintaining profitability • Commitment to customer trust, exceptional service, and sustainable growth • Encouragement for further inquiries to the investor relations team
Easy Trip Planners Limited Investor Conference Call Summary
Conference Call Overview • Date: February 6, 2023 • Transcript released on February 10, 2023 • Key Executives: Co-Founders Prashant and Nishant Pitti, CFO Ashish Bansal • Disclaimer on forward-looking statements and risks • Audio recording available on the company's website
Financial Performance Highlights • Record Gross Booking Revenue: INR 2,267 crores (75% YoY increase) • Full-Year FY22 Comparison: Surpassed by 59% • Growth Drivers: • Air travel segment: 31% growth • Hotel bookings: 88% surge • Adjusted Revenue: INR 196.2 crores (29% YoY increase) • Profit After Tax: INR 41.7 crores (4.25% increase)
Strategic Initiatives • Customer Engagement: Launched referral-based reward program and self-booking tool for corporates • Acquisitions: • Nutana Aviation (75% stake) for air charters • CheQin (55% stake) for hotel price negotiations • Revenue Diversification: Focus on non-scheduled air travel and last-minute hotel bookings
Expense Management and Profitability • Revenue Composition: Over 95% organic revenue • Expense Increase: Tripled year-over-year due to B2B2C commissions • EBITDA Margin Improvement: Increased from 40% to around 45%
Growth Strategy • Marketing and Employee Expenditures: Gradual increase relative to Gross Booking Revenue • Focus on Non-Air Segments: Currently 89% from flights, aiming for a 70:30 split • Profit Target: INR 500 crore in the next 3-4 years • Unique Aggregator Model: Competitive pricing in the hotel business
Marketing Strategy Insights • Marketing Expenses: Decreased from INR 30 crores in Q2 to INR 20 crores in Q3 • Future Plans: Maintain marketing expenditure at 0.8% to 1% of Gross Booking Revenue
Competitive Landscape • Cost Efficiency: Bootstrapped growth and unique position as the only OTA in India with its own call center • Customer Refund Policy: Praised for its effectiveness
Future Outlook • Brand Building Investments: Emphasized as beneficial for shareholders • Revenue Growth: Significant increases in hotel and non-air revenues • Stable EBITDA Margins: Expected to remain stable or improve • Positive Tourism Industry Outlook: Confidence in growth trajectory and market conditions