SUMMARY
- The traveltech SaaS startup RateGain reported a significant increase of 82% YoY in its consolidated PAT, reaching Rs 45.37 crore in Q1 FY25, compared to Rs 24.91 crore in Q1 FY24.
- The traveltech’s revenue from operations reached Rs 278.28 crore in the first quarter of fiscal year 2025, marking a 26% YoY increase and a 0.5% QoQ increase.
- RateGain’s EBITDA increased by 31.7% YoY to Rs 49.77 crore in the quarter under review, compared to Rs 37.79 crore in Q1 FY24, and declined 8.3% QoQ from Rs 54.25 crore in Q4 FY24.
The traveltech SaaS startup RateGain reported a significant increase of 82% YoY in its consolidated profit after tax (PAT), reaching Rs 45.37 crore in Q1 FY25, compared to Rs 24.91 crore in the previous year’s first quarter.
However, there was a slight decline of 9% QoQ in PAT from Q4 FY24 where it was Rs 50.02 crore.
RateGain’s revenue from operations reached Rs 278.28 crore in the first quarter of fiscal year 2025, marking a 26% YoY increase from Rs 221 crore in the previous fiscal year’s first quarter and a 0.5% increase from Rs 276.25 crore in the preceding quarter.
The company attributed its revenue growth to the strengthening of its long-standing partnerships, its commitment to operational excellence, and its focused efforts in sales and marketing.
RateGain’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) increased by 31.7% to Rs 49.77 crore in the quarter under review, compared to the previous year’s quarter, where it was Rs 37.79 crore. However, on a QoQ basis, EBITDA saw a decline of 8.3% from Rs 54.25 crore in Q4 FY24.
EBITDA margin for the quarter under review was 19.1%, slightly lower than 17.6% in the same quarter last year, but higher than the margin of 21.2% in the preceding quarter.
Company chairman and managing director, Bhanu Chopra, stated that the company has had a consistent start to the fiscal year, maintaining a balanced performance and consolidating its position from a record year. He noted that while the travel industry remains stable, the company is aware of the increasing global uncertainties but remains confident in its resilient business model and adaptable approach to overcome these challenges.
RateGain reported making a total of 3,299 new customer acquisitions in the June quarter. Key new partnerships included Malaysian Airlines, GreenMotion, and Hahn Air. By the end of the quarter, the company’s “total pipeline” had grown to Rs 555.3 crore, with new contracts signed bringing in Rs 62.1 crore.
RateGain specializes in providing software as a service (SaaS) solutions for the travel and hospitality sectors. It offers data as a service (DaaS), martech, and distribution services to its clients.
The company noted a steady increase in booking volumes due to a healthy demand for travel during the June quarter. It mentioned that global travel is currently at 104% of the levels seen in 2023, with growing momentum in the Asia Pacific and European regions.
While its martech services accounted for the highest 47.7% (Rs 123.89 crore) of its revenue during the quarter under review, DaaS and distribution services contributed 31.9% (Rs 83.03 crore) and 20.4% (Rs 53.09 crore) of revenue, respectively.
In Q1 FY25, the traveltech introduced a new platform, “Navigator,” aimed at helping hotels monitor demand, gain insights into rates, and address parity issues to improve operational efficiency for their commercial teams.
Notably, RateGain’s shares closed 5.38% lower today at Rs 763.15 on the BSE.
