Easy Trip Planners Ltd
Q3 FY22 Earnings Call Analysis
Leisure Services
fundraise: No informationcapex: Yesrevenue: Category 1margin: Category 3orderbook: No information
๐ฐfundraise
Any current/future new fundraising through debt or equity?
- The transcript from Easy Trip Planners Limited's Q2 FY2023 earnings call does not mention any current or planned fundraising activities through debt or equity.
- There is no discussion of new capital raising initiatives or intentions to issue equity or debt in the near future.
- The company highlights a healthy balance sheet, strong return ratios, consistent cash generation from operations, and a low-cost business model.
- Cash utilization is mentioned for ongoing projects, but no external fundraising is referenced to support these.
- Overall, based on the available transcript, there is no indication of current or planned fundraising through debt or equity.
๐๏ธcapex
Any current/future capex/capital investment/strategic investment?
- Easy Trip Planners Limited is focusing on growth through both organic expansion and inorganic opportunities.
- The company is looking at new territories for expansion along with inorganic growth opportunities to create shareholder value.
- Investments in brand building and marketing, such as sponsorships of Asia Cup Cricket 2022 and Road Safety World Series, indicate strategic marketing investments.
- The company has set up subsidiaries in various countries (USA, UK, New Zealand, Philippines, Singapore, UAE) and corporate offices in Dubai and London to strengthen global presence.
- Acquisitions include YoloBus and Spree HotelsโSpree is profitable and expanding hotel inventory, while Yolo is in the incubation stage but expected to grow.
- Operations and technology remain India-based, leveraging cost advantages to support global expansion.
- No explicit disclosure of specific future capex amounts, but focus on building market presence and technology capabilities through strategic investments is clear.
๐revenue
Future growth expectations in sales/revenue/volumes?
- The company has shown strong growth with highest ever Gross Booking Revenue (GBR) of ~INR 2,000 crores in Q2 FY2023, almost reaching last year's full GBR in just two quarters.
- Revenue from operations increased sharply by 92% year-on-year in Q2 FY23.
- Air segment reported an 84% YoY growth; transactions in Air and Hotel segments grew by 52% and 69% respectively in Q2 FY23.
- B2C volume remains strong at ~85%, considered stable long-term.
- Growth will be driven by:
- Customer-first strategy
- Low-cost business model
- New-age technology
- Exceptional marketing campaigns including global sponsorships.
- Expansion into new global markets like Dubai, USA, UK, and others expected to contribute.
- Focus on scaling acquisitions like Spree (profitable, making 20-30 lakhs monthly) and incubation stage Yolo bus services.
- Marketing costs expected to normalize between 0.6%-0.9% of GBR.
- Overall, the company expects to sustain robust volume and revenue growth over the next 3-5 years.
๐margin
Future growth expectations in earnings/operating earnings/profits/EPS?
- Easy Trip Planners expects continued robust growth evidenced by a 47% YoY adjusted PBT increase in Q2 FY23 and strong half-year financials with adjusted revenue up 100% and EBITDA up 48%.
- Management believes the B2C business mix of approximately 85% will remain stable long-term, supporting steady earnings.
- Profitability is supported by a low-cost business model, customer-first strategy, new-age technology, and exceptional marketing campaigns.
- The international business, currently at breakeven or slightly negative, is in incubation with future expectations to generate significant profits due to low operating cost from India.
- Growth will be boosted by brand-building measures like high-visibility sponsorships and expanding hotel and other non-flight segments aiming for a 70:30 flight to other services revenue ratio eventually.
- Acquisitions (Spree Hotels profitable; YoloBus in early growth) are expected to contribute positively as they mature.
- Overall, Easy Trip is positioned for consistent strong growth, improved margins, and increasing profits.
๐orderbook
Current/ Expected Orderbook/ Pending Orders?
The transcript of Easy Trip Planners Limited's Q2 FY2023 earnings call does not explicitly mention the current or expected order book or pending orders. However, relevant operational insights include:
- The company reported highest-ever Gross Booking Revenue (GBR) of ~INR 2,000 crores in Q2 FY2023.
- Strong growth in booking volumes: Air and Hotel segments grew 52% and 69% year-on-year, respectively.
- Hotel nights increased by 70% in Q2 FY2023.
- Business is growing steadily with focus on both B2C (~85%) and B2B2C segments.
- Expansion through acquisitions (Yolo, Spree) and overseas subsidiaries indicating pipeline growth.
- Strategic brand-building initiatives and marketing campaigns suggest forward momentum.
- Working capital remains stable with increased trade receivables reflecting growing corporate and travel agent business.
No specific quantitative order book or pending order figures were disclosed in the call.
