Q1 FY25 Earnings Call Summary - Le Travenues Technology Limited (ixigo)
Key Financial Highlights
• Gross Transaction Value (GTV): Reached Rs. 2,988 crores, a 27% year-on-year increase.
• Monthly Transacting Users: Increased by 22%, surpassing 2.78 million.
• Adjusted EBITDA: First-time achievement of Rs. 20 crores with an 11% margin on revenue.
• Gross Ticketing Revenue: Increased by 18.2% to Rs. 218.3 crores.
• Profit After Tax: Surged by nearly 78% to Rs. 14.9 crores.
Growth Drivers
• Travel Sector Developments: Positive government initiatives, infrastructure improvements, and focus on spiritual tourism.
• Segment Performance:
• Trains: Strong growth, contributing 53% to group GTV.
• Buses: 16% increase in GTV; focus on capturing first-time online bus bookers.
• Flights: GTV surpassed Rs. 1,000 crores with a 58% growth in contribution margin.
Innovations and User Experience
• New Features:
• Turbo UPI: One-click payment feature enhancing UPI transactions.
• AU-ixigo Credit Card: Co-launched with travel benefits and seamless UPI transactions.
• Flight Tracker Pro: Real-time flight information tool to improve travel experience.
• Customer Focus: Emphasis on customer experience and innovation for long-term growth.
Market Dynamics and Future Outlook
• International Flight Bookings: 31% quarter-on-quarter increase in GTV.
• Partnership with PhonePe: Expected to enhance brand awareness and distribution in tier-2 and tier-3 markets.
• Take Rates: Anticipated stabilization around 7% post-COVID normalization; not directly affected by PhonePe partnership.
• Advertising Strategy: Increased during peak seasons to leverage market dynamics.
Conclusion
• Management's Vision: Continued focus on customer needs and innovative product launches to drive growth.
• Future Conversations: Management expressed interest in ongoing discussions in future quarters.

Submission Details
• Date of submission: July 11, 2024
• Earnings call date: July 4, 2024
• Compliance with SEBI regulations
• Key participants:
• Aloke Bajpai (Chairman and CEO)
• Rajnish Kumar (Co-CEO)
• Saurabh Devendra Singh (CFO)
• Moderator: Rohit Thorat (Axis Capital)
Company Performance Highlights
• User Growth:
• Over 480 million annual active users
• 38% year-on-year growth in Gross Transaction Value (GTV) to INR 10,283 crores
• Financial Metrics:
• 10% adjusted EBITDA margin in Q4
• Increased travel spending due to rising disposable incomes
• Market Impact:
• Positive effects from reduced booking restrictions by IRCTC
• Significant growth in bus (21.2%) and international flight bookings (100%)
Technology and AI Initiatives
• User Engagement:
• 8.3 crore Monthly Active Users (MAUs) in September 2023
• Over 10.5 crore app downloads
• AI Investments:
• Deployment of AI tools like TARA chatbot and ixigo PLAN trip planner
• New features: Google Wallet integration and real-time flight tracking
Financial Highlights
• Revenue Growth:
• Gross revenue increased by 29.9% to INR 831.8 crores
• Revenue from operations rose by 30.85% to INR 655.9 crores
• Profitability:
• PAT surged by 212% to INR 73.1 crores (including exceptional item)
Business Segment Performance
• Segment Contributions:
• Train segment: 54% of group GTV
• Bus segment: 30% of contribution margin
• Flight segment: 26% increase in contribution margin despite supply constraints
Strategic Initiatives
• B2B2C Strategy:
• Focus on reaching tier 2 and 3 cities through local agents
• Hotel Segment Growth:
• Double-digit growth without external marketing
Market Outlook and Guidance
• Growth Expectations:
• Aiming for double-digit growth in rail and faster growth in flights
• Bus segment expected to improve over time
• Tax and Financial Management:
• Effective tax rate expected to standardize to 25%
Conclusion
• Future Focus:
• Emphasis on profitable growth and optimizing services
• Continued investment in technology and customer experience enhancements
Q&A Highlights
• Flight Take Rates: Normalizing to pre-COVID levels, expected to stabilize between 7% and 7.5%
• Offline Booking Landscape: 25% of train bookings still occur offline, indicating market potential
• Cash Management: Focus on building advertising business and managing working capital effectively
Closing Remarks
• Aloke Bajpai expressed gratitude for participation and anticipation for future interactions.