Yatra revenue down 9 percent; Records reduced volumes in B2C segment

Corporate travel services provider and the third largest online travel company, Yatra Online Limited announced its results for the first quarter of financial year 2024-25.

For Q1-FY25, Yatra reported revenue of Rs 100.8 crore, down 9% YoY largely due to the impact of reduced volumes in the B2C segment, as the company optimized discounts amid intensifying price competition in the market, the firm said. Yatra continued to expand its corporate client base and closed 34 new corporate accounts during the quarter with billing potential of Rs 202.8 crore with average billing potential up 77% sequentially. Yatra’s consolidated net profit declined 32.5% to INR 4.04 crore in Q1 FY25 from Rs 5.99 crore in the same quarter in the last fiscal.

The company said it made significant strides in its newly launched MICE business with a newly onboarded team that began ramping up operations during the quarter. While MICE contributions were muted for the June quarter, early indicators for the current quarter are positive, with meaningful business already secured, the OTA shared.

Chief Executive Officer, Dhruv Shringi stated: “For the three months ended June 30, 2024, we reported revenue of INR 1,008 million, representing a decline of 9% year-over-year. The decline was primarily driven by reduced volumes in the B2C segment, as we optimized discounts amid intensifying price competition in the market."

He added, "Despite challenges in the B2C segment during the June quarter, the Corporate Travel segment showed robust growth across all key metrics. We successfully secured 34 new corporate customer accounts. As the leader in Corporate Travel services in India, our customer acquisition rates remain strong, consistently outperforming industry benchmarks. We are currently exploring strategic M&A opportunities to further bolster our Corporate Travel segment, with a promising pipeline of prospects under evaluation."

Shringi admitted that the June quarter posed challenges for Yatra's B2C segment. "However, we are encouraged by the strong momentum we are witnessing in our Corporate Travel business. The growth in new corporate accounts and the exciting developments in our MICE business underscore our commitment to driving long-term value for our stakeholders. As we navigate the evolving landscape, we remain focused on our strategic priorities to further strengthen our market leadership.”

On 12th August 2024, the Board of Directors of Yatra Online Limited approved a Composite Scheme of Amalgamation involving Yatra Online Limited and its six wholly-owned subsidiaries. The company said the primary objective of this amalgamation is to simplify management, operational, and corporate structures, thereby enhancing efficiencies and generating synergies.

This will be accomplished through the pooling and more effective utilization of combined resources, reducing overhead costs and expenses, achieving economies of scale, eliminating duplication of work, and rationalizing compliance requirements.