SUMMARY
- Following a significant loss of Rs 15 crore in Q4 FY24, traveltech giant EaseMyTrip has managed to turn its financial situation around, recording a net profit of Rs 33.9 crore for Q1 FY25.
- EaseMyTrip’s operating revenue has surged by 23% from Rs 124 crore in Q1 FY24 to Rs 152.6 crore in Q1 FY25, and its net profit has jumped 31% from Rs 25.9 crore in the same quarter.
- EaseMyTrip managed to reduce its total expenses to Rs 109 crore in the first quarter of the current fiscal year from Rs 117.5 crore in Q4 FY24.
Following a significant loss of Rs 15 crore in Q4 FY24, traveltech giant EaseMyTrip has managed to turn its financial situation around, recording a net profit of Rs 33.9 crore for Q1 FY25.
Despite a drop in its operating revenue by nearly 7% to Rs 152.6 crore from the previous quarter’s Rs 164 crore, EaseMyTrip’s bottom line has improved.
The online travel aggregator reported a loss in Q1 FY24 of Rs 72.4 crore, which included “advances to suppliers written off” and trade receivables that were written off. Excluding these write-offs, the company’s profit for the last quarter was Rs 39.1 crore.
Conversely, in Q1 FY25, both revenue and profitability have seen YoY increase. EaseMyTrip’s operating revenue has surged by 23% from Rs 124 crore in Q1 FY24, and its net profit has jumped 31% from Rs 25.9 crore in the same quarter.
Air tickets remain the primary source of revenue for the company, contributing Rs 107.2 crore to its revenue in the quarter under review.
EaseMyTrip noted a significant increase in revenue from hotels and holiday packages, with a 116.6% YoY growth to Rs 210.7 crore, and a 139% YoY increase in revenue from its Dubai operations. The company’s gross booking revenue (GBR) has increased by 4.1% YoY to Rs 2,274.5 crore in the reported quarter.
Nishant Pitti, the cofounder and CEO of EaseMyTrip, stated that the company has maintained steady operational momentum and focused on profitability during this period.
EaseMyTrip managed to reduce its total expenses to Rs 109 crore in the first quarter of the current fiscal year from Rs 117.5 crore in Q4 FY24. This reduction was 19% YoY from Q1 FY24’s Rs 91.5 crore.
The company’s expenses on employee benefits have seen a marginal decrease on a QoQ basis to Rs 23.9 crore but an increase of almost 37% YoY in Q1 FY25. EaseMyTrip’s expenses on marketing and promotion fell by 29% QoQ and 27.5% YoY to Rs 18.2 crore in the quarter under review.
The online travel platform experienced an 8.6% QoQ and 1.8% YoY increase in spending in payment gateway charges category to Rs 16.1 crore in Q1 FY25. According to EaseMyTrip’s investor presentation, the company spent Rs 71.2 crore on discounts to its customers in Q1 FY25 compared to Rs 76.6 crore in the same quarter of the previous fiscal year.
The Delhi-based company has gained a 4.94% ownership in ETrav Tech Limited, aiming to broaden the startup’s range of services and improve its offerings for business customers.
Furthermore, its joint venture with Adani Digital Labs (ADL) to provide a duty-free shopping experience to approximately 2 million travelers from abroad at 7 key international airports in India, through EasyMyTrip’s platform, marks one of the company’s significant collaborations for the quarter.
Additionally, the company has formed a strategic alliance with the government-supported Open Network for Digital Commerce (ONDC).
Pitti commented, “As per the company’s expansion strategy, EaseMyTrip has opened its offline franchise store model and opened new stores in Karnal, Amritsar, and Bhopal. These additions bring the total number of franchise stores to 16, with a strategic goal of reaching 100 stores by the end of the year.”
