EaseMyTrip.com Q4 (2023-24) Con Call Summary
On May 24, 2024, Easy Trip Planners Limited held its Q4 FY2024 earnings call, with significant participation from top management including Prashant Pitti, the Managing Director. The company reported its highest-ever EBITDA of INR 228 crores for FY2024, with Q4 gross booking revenue (GBR) of INR 2,090 crores. Revenue from operations grew by 40% year-on-year to INR 164 crores, and Q4 EBITDA increased by 23.7% to INR 58 crores. Profit before tax rose 24% year-on-year to INR 55 crores for Q4 and 16% for FY2024, reaching INR 215 crores.
The Non-Air segment experienced substantial growth, with hotel bookings increasing by 38.6% year-on-year and other bookings by 53%. Initiatives such as the PNB EMT credit card, partnerships under the Adopt a Heritage 2.0 program, and collaborations with the Ministry of Rural Development highlighted the company’s efforts to expand its service offerings and reach.
Key initiatives during Q4 included the launch of new franchise stores in Indore, Gurugram, and Jalgaon, collaboration with common service centers, and entry into the insurance sector. Additionally, the company acquired a 50% stake in Jeewani Hospitality and partnered with Radisson Hotel Group to develop a Radisson Blu Hotel in Ayodhya, leveraging the location’s religious significance.
Despite a 2.5% decline in GBR, Easy Trip Planners maintained profitability and focused on the bottom line. The company’s operational cash flow turned positive, reaching INR 124 crores. However, the management refrained from providing specific guidance on GBR growth for the next year, emphasizing a focus on profitable growth and potential inorganic expansions, supported by a QIP plan of INR 1,000 crores.
Prashant Pitti addressed concerns about airline commission rates, noting stable margins and ongoing efforts to grow the Non-Air business, which showed significant improvements in hotel and other bookings. The company plans to continue leveraging its large user base for cross-selling opportunities while nurturing recent acquisitions and maintaining a primarily asset-light business model.
Overall, Easy Trip Planners demonstrated robust financial performance, strategic growth initiatives, and a commitment to maintaining profitability amidst a competitive market.
What are the future plans to grow revenue for Easy Trip Planners (Ease My Trip)?
Easy Trip Planners Limited has outlined several strategic initiatives and plans to drive future revenue growth. These strategies focus on expanding both their air and non-air segments, enhancing customer experience, and leveraging partnerships and acquisitions. Below are the key future growth plans of Easy Trip Planners:
- Expansion of Non-Air Segments:
- Hotel and Holiday Bookings: The company aims to significantly grow its hotel and holiday booking services. In Q4 FY2024, the hotel segment grew by 38.6% year-on-year, and other segments grew by 53%. They plan to continue this momentum.
- New Franchise Stores: Easy Trip Planners has been expanding its offline presence by opening franchise stores across India. These stores, operated by third parties, help attract customers who prefer offline bookings, particularly for holiday packages.
- Partnerships and Collaborations:
- PNB EMT Credit Card: Partnering with Punjab National Bank, Easy Trip Planners launched a co-branded credit card offering various travel-related rewards. This partnership provides access to PNB’s vast customer base, enhancing their reach.
- Collaboration with Common Services Centers (CSC): The company has collaborated with CSC to offer comprehensive travel solutions through their network of 8 lakh village-level entrepreneurs across India.
- Diversification into New Markets:
- Insurance Sector: The company has entered the insurance broking business, tapping into the INR 7.9 trillion market. This move leverages their existing customer base, as there is a significant overlap between online ticket bookers and online insurance purchasers.
- Acquisitions and Strategic Investments:
- Acquisition of Jeewani Hospitality: Easy Trip Planners acquired a 50% stake in Jeewani Hospitality and partnered with Radisson Hotel Group to develop a 150-room Radisson Blu Hotel in Ayodhya City. This strategic investment is aimed at capitalizing on the anticipated increase in visitors to Ayodhya following the establishment of the Ram Mandir.
- Technology and Innovation:
- Enhanced Online Platforms: Continuous improvement of their online booking platforms to provide a seamless and user-friendly experience, thereby attracting more customers and increasing repeat business.
- Adopt a Heritage 2.0 Program: Through their subsidiary, EaseMyTrip Foundation, they have partnered with the Archaeological Survey of India to enhance and maintain four historical monuments. This initiative not only contributes to social responsibility but also promotes tourism, potentially driving more bookings.
- Marketing and Promotional Activities:
- Nationwide Road Shows: The company has conducted road shows in various cities to foster business connections and dialogues within the tourism industry, engaging over 1,800 B2B agents. This helps in building a strong network and increasing market presence.
- Focus on Profitability:
- The company is emphasizing profitability over just increasing gross booking revenue (GBR). They aim to maintain and improve their profit margins by optimizing operational efficiencies and focusing on higher-margin segments.
By implementing these strategies, Easy Trip Planners aims to sustain and accelerate its growth trajectory, diversify its revenue streams, and enhance its market position in the travel industry.