Arthneeti
Yatra OnlineQ2 FY24

Yatra Online Q2 FY24 Earnings Call Analysis

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

Price: ₹115P/E: 52.6Market Cap: ₹1.8K CrSector: Leisure Services

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Yes

Order

N/A

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3
  • The company expects continued robust growth in travel demand, with Indian domestic market growing 29.1% year-to-date (Jan-Sep 2023).
  • Highest percentage growth anticipated from corporate hotels, followed by B2C air, corporate air, and B2C hotels.
  • 45% of gross bookings are from B2B and 55% from B2C, expected to maintain this mix.
  • The corporate travel segment is growing due to market share gain mostly from mid-tier fragmented players.
  • Expansion focused on growing profitable B2B hotel bookings through cross-selling to large corporate customers.
  • Seasonal peaks in Q1 and Q4 positively impact revenue and profitability.
  • Investment plans backed by fresh capital aim to generate incremental IRR of 25% from airline and hotel deposits, supporting growth and margin expansion.
  • Overall, the outlook is optimistic with focus on profitable segments, stronger balance sheet, and leveraging macroeconomic tailwinds.

See what Yatra Online management said on margin guidance — free account, 30 seconds.

Fundraise plans

Yes
  • The company raised about Rs. 602 crores through a successful IPO recently.
  • Of this, around Rs. 375-400 crores are earmarked for growth initiatives including margin expansion with airlines and hotels.
  • Approximately Rs. 150 crores are planned for LME (likely an investment or acquisition).
  • Around Rs. 60 crores are allocated for general corporate purposes.
  • Debt reduction is expected to happen gradually over the next couple of quarters, funded through internal accruals as marketing and customer acquisition investments free up cash.
  • There is no explicit mention of immediate plans for additional fundraising through new debt or equity beyond the recent IPO proceeds.
  • The company will evaluate restructuring processes with shareholders in the U.S. entity as needed going forward.

See what Yatra Online management said on order book — free account, 30 seconds.

Capex plans

Yes
  • Post-IPO, the company raised about Rs.602 crores allocated for:
  • - Strategic investments and acquisitions
  • - Inorganic growth initiatives
  • - Technology advancement
  • - Bolstering customer acquisition and retention efforts
  • Approximately Rs.150 crores earmarked for Large and Medium Enterprises (LME)
  • Around Rs.60 crores allocated for general corporate purposes
  • Remaining funds set aside for growth initiatives, including margin expansion with airlines and hotels
  • Focus on strengthening the balance sheet to negotiate better with suppliers and improve margins
  • Investments aimed to generate an annualized return of at least 25%, especially deposits with airlines and hotels
  • Some gradual paydown of debt over next quarters funded by internal accruals as investments scale up

Track Yatra Online — get its next earnings analysis in your feed

Margin guidance

Category 3
  • The company expects to achieve growth rates above the market by gaining corporate travel market share and capitalizing on robust consumer travel demand.
  • Domestic aviation and hotel sectors show strong double-digit growth with continued momentum anticipated.
  • EBITDA margins on the B2B (corporate) side are around 20%, higher than B2C margins (mid to high single digits), indicating focus on profitable segments to improve earnings.
  • Strategic use of IPO proceeds (~₹600 crores) will strengthen the balance sheet, enabling better supplier negotiations, driving margin expansion especially with airlines and hotels.
  • Investment in airline deposits targets ~25% annualized returns, enhancing earnings.
  • Incremental ROC on corporate business exceeds 40%, driven by marginal costs for new customers, contributing to profitability.
  • Focus is on increasing cross-sell of hotels in large corporate accounts to boost profitable revenue streams.
  • Net profit is currently stable, with interest costs expected to reduce post-IPO, potentially improving EPS over coming quarters.

Order book

The transcript does not provide explicit details on the current or expected order book or pending orders for Yatra Online Limited. However, related insights include: - Yatra currently serves approximately 900 large corporate clients. - Corporate contracts typically last 1 to 3 years and involve integration with clients' ERP and HRMS systems, creating switching costs and contract longevity. - The company emphasizes growth in both B2B and B2C segments, with 45% of gross bookings from B2B and 55% from B2C. - Incremental returns on new corporate customers are strong due to low marginal costs. - Strategic investments and acquisitions are planned using IPO proceeds, but specific order backlog or pending contract volumes are not disclosed. No direct figures or precise data on orderbook or pending orders are mentioned in the call transcript.

How does Yatra Online rank vs peers in Leisure Services?

Pro feature
ThisYatra Online
Rev 3Mar 3
See where Yatra Online sits in Leisure ServicesSee which companies these are, and every other name in the sector.Open rankings

How does Yatra Online rank in Leisure Services?

Compare Yatra Online against every Leisure Services company (Q2 FY24) on revenue, margins and earnings-call signals.

View Leisure Services leaderboard →

Continue your research

What Yatra Online's management said in earlier quarters

Others in Leisure Services this season

  • Sapphire Foods (Q1 FY27)

    Overall, consolidated revenue grew 15% in Q1 FY ‘27, the best in 11 quarters, with 37% adjusted EBITDA growth. Key concall takeaways from Sapphire Foods India…

  • SPECIALITY (Q1 FY27)

    Delivery business has grown to 29% of total revenue, complementing dine-in growth, driven by increased consumption occasions and digital-first brands like…

  • Royal Orch.Hotel (Q1 FY27)

    Consolidated revenue grew 38.5% in Q1 FY27, driven by new openings and existing portfolio growth. Key concall takeaways from Royal Orchid Hotels Ltd's Q1 FY27…

  • Apeejay Surrend. (Q1 FY27)

    70-80 crores cash flow this year, Rs. Key concall takeaways from Apeejay Surrendra Park Hotels Ltd's Q1 FY27 earnings call — and how it ranks against sector…

Compare:vs Indian Hotels Covs I R C T Cvs ITC Hotels

🔎 Who's planning the most growth?

Companies ranked by management's own guidance — revenue, margins, capex and order book, from every earnings call in India.

See rankings →