Easy Trip Planners LtdQ3 FY23

Easy Trip Planners Ltd Q3 FY23 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹5.76Market Cap: ₹2.4K CrSector: Leisure Services

Management growth scorecard

Revenue

Category 1

Margin

Category 3

Fundraise

N/A

Order

Yes

Capex

Yes

3 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 1
  • The company expects robust future growth with gross booking revenue (GBR) growing significantly; 9MFY23 GBR stood at INR 5,907.8 crores, a 132% YoY increase.
  • They aim to become a INR 500-crore profit company in the next 3-4 years, driven by domestic and international expansion.
  • Growth in Middle East GBR shows rapid expansion: from INR 7 crores in Q1FY23 to INR 44.2 crores in Q3FY23.
  • Non-air business is growing organically, targeting a 70:30 air to non-air revenue ratio within 3-4 years, closer than initially projected.
  • Group bookings and MICE are new growth areas, contributing substantially to hotel segment revenues.
  • Marketing efforts will sustain GBR growth, maintaining 0.8% to 1% of GBR as marketing spend.
  • The company expects employee and other costs to grow slower than revenues, supporting operating leverage and margin expansion.

See what Easy Trip Planners Ltd management said on margin guidance — free account, 30 seconds.

Fundraise plans

  • There is no explicit mention of any current or future fundraising through debt or equity in the provided transcript.
  • The management did not comment on valuation matters related to equity, stating it is for the market to decide.
  • The Company is cautious about acquisitions and prefers a calculated approach to utilize money judiciously.
  • No specific plans or targets for raising additional capital via debt or equity were discussed during the call.
  • The focus appears to be on organic and inorganic growth using existing resources rather than immediate fundraising.
  • Employee expenses and marketing costs are being managed internally without indication of needing external capital.
  • Overall, no announcements or guidance on fundraising through debt or equity were provided in this earnings call.

See what Easy Trip Planners Ltd management said on order book — free account, 30 seconds.

Capex plans

Yes
- The Company has made strategic acquisitions recently: - Acquired Gujarat’s GIFT city-based Nutana Aviation (75% stake for INR 1.5 crore), to expand into air charter business, targeting the fragmented $2-3 billion non-scheduled air travel market. - Majority stake acquired in CheQin, a real-time hotel booking marketplace allowing direct bargaining between travelers and hoteliers, to strengthen hotel booking portfolio. - These acquisitions are part of a prudent investment strategy to build capabilities for future growth and returns. - Plans include growing the number of hotels in Spree hospitality by adding approximately five new hotels every quarter. - No explicit mention of large upcoming capex; focus seems on strategic minority/majority stakes and organic scaling. - Government infrastructure investments (e.g., 66 new airports in India in next decade) provide a macro growth tailwind supporting the Company's expansion. Overall, strategic investments are focused on broadening product offerings and platform capabilities through acquisitions and organic growth aligned with market trends.

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How does Easy Trip Planners Ltd rank vs peers in Leisure Services?

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