Easy Trip Planners Ltd

Q1 FY23 Earnings Call Analysis

Leisure Services

Full Stock Analysis
fundraise: No informationcapex: Yesrevenue: Category 1margin: Category 2orderbook: No information
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fundraise

Any current/future new fundraising through debt or equity?

- There is no explicit mention of any current or planned new fundraising through debt or equity in the provided text. - The company has received advances from business partners like ITQ (a GDS) and agents, which are reflected as contract liabilities; these are not classified as debt or equity fundraising but as advances in their B2B business. - The focus seems to be on growing GMV by more than 50% in the current year while maintaining profitability. - The company is also investing significantly in growth, as indicated by the increase in employees and marketing expenses. - Any inorganic growth or acquisitions, including overseas expansions, are being considered but no specific fundraising for these purposes is disclosed. - Overall, no direct information on raising new debt or equity financing is given in the document excerpts.
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capex

Any current/future capex/capital investment/strategic investment?

- EaseMyTrip has made inorganic acquisitions recently, such as YoloBus and a hotel segment company (Spree Hospitality), which are integrated as subsidiaries, contributing to increased employee count and operational scale. - The company is actively exploring acquisition opportunities both domestically and overseas as part of its growth strategy. - There are ongoing efforts to expand overseas business, with a focus on leveraging technology and higher average ticket sizes in international markets. - Investment in technology and operational efficiency is highlighted, with the technology team size increasing from 70 to 120 employees. - Physical presence is being expanded selectively, e.g., opening the first physical holiday store in Patna to grow the holiday business, which currently remains offline-heavy. - Marketing investments are expected to continue around 0.9% to 1% of GMV to fuel growth. - Employee costs are expected to stabilize or reduce in the coming years despite past growth due to acquisitions and scaling.
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revenue

Future growth expectations in sales/revenue/volumes?

- Expectation to grow Gross Booking Revenue (GBR) by more than 50% in the coming year, likely exceeding this target. - Growth from INR 3,700 Crores to INR 8,000 Crores GBR in FY2023, far surpassing earlier guidance of INR 6,500 Crores. - Stable take rate expected between 8.2% and 8.7% going forward. - Air segment grew 62.2% in FY2023, selling 1.15 Crores air tickets, up from 70.9 lakhs in FY2022. - Overseas business, e.g., Dubai market growing well, expected to scale from INR 118 Crores to INR 700-800 Crores in the next 2 years. - Focus on profitable growth rather than rapid market share gain at a loss, targeting journey of 3 years to become number one travel portal in India. - Expect operating margins (EBITDA) to stabilize around 45-46% following exceptional COVID year performance.
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margin

Future growth expectations in earnings/operating earnings/profits/EPS?

- The company anticipates growing its Gross Booking Revenue (GBR) by 50% in the current year, possibly exceeding this target. - Profit margins are expected to be maintained between 1.5% and 2%, balancing growth and profitability. - EBITDA margins are projected to improve to about 45-46%, a normalization from the exceptional 58% seen during the COVID year. - The PAT grew by 26.6% in FY2023, and a similar or better growth is expected alongside the GBR growth. - Employee costs are expected to stabilize due to team strength, while marketing costs will remain around 0.9% to 1% of GMV to support growth. - The company focuses on sustainable growth while maintaining profitability, evident from doubling GBR from INR 3700 Crores to over INR 8000 Crores recently. - Stable take rates around 8.2% to 8.7% are assumed to continue, supporting steady revenue growth.
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orderbook

Current/ Expected Orderbook/ Pending Orders?

- The company indicated an expected orderbook (Gross Booking Revenue, GBR) of INR 6,500 Crores earlier but has already crossed INR 8,000 Crores. - For the current year, they anticipate growing GBR by 50%, with potential to exceed that figure. - Profitability and profit margins are expected to be maintained between 1.5% and 2% while achieving this growth. - The focus remains on sustaining similar profitability levels alongside aggressive GBR growth.