SUMMARY
- ixigo saw its consolidated net profit drop by 51% to Rs 13.08 crore in Q2 FY25.
- The platform’s revenue from operations saw a 26% increase to Rs 206.47 crore in Q2 FY25.
- ixigo’s overall expenses increased by 13% to reach Rs 191.46 crore in Q2 FY25.
Travel booking platform ixigo saw its consolidated net profit drop by 51% to Rs 13.08 crore in Q2 FY25 from Rs 26.70 crore in Q2 FY24.
This significant drop in earnings was mainly attributed to an increase in the platform’s total tax costs, which jumped to Rs 5.26 crore for the quarter, a contrast to the previous year’s quarter where these costs were non-existent.
ixigo’s profits before taxes were Rs 18.34 crore in Q2 FY25, dropping 30% from Rs 26.27 crore in Q2 FY24.
The company experienced a 12% QoQ drop in its net profit, from Rs 14.85 crore in Q1 FY25
However, the platform’s revenue from operations saw a 26% increase to Rs 206.47 crore in Q2 FY25, up from Rs 163.91 crore in Q2 FY24.
“Unlike the last few quarters, where I used this answer to identify some of the one-offs that inflated our PAT, this time these one-offs are not there and were more prevalent in the previous year’s comparable quarter. These one-offs are the reason for what looks like a dip in PAT,” ixigo’s group CFO Saurabh Devendra Singh said said.
The share of losses of associates went up from Rs 0.75 crore in Q2 FY24 to Rs 1.93 crore in Q2 FY25. Singh cited this among other reasons as the driving factor for the drop in revenue.
Due to losing control over Freshbus, the company had to reassess its investment, resulting in a one-time gain of Rs 29.7 crore in Q2 FY24, which was missing in the same period this year.
The company’s tax cost for the quarter spiked to Rs 5.26 crore from the negligible amount in the same period of the previous year. Singh mentioned that the company is now experiencing a more stable tax rate as it is making use of its accumulated tax credits from previous losses.
The company’s EBITDA shot up 655% YoY to Rs 22.40 crore with adjusted EBITDA (excluding ESOPs expenses) climbing 326% to Rs 20.99 crore from Rs 4.92 crore in Q2 FY24.
ixigo reported a 40% YoY increase in its gross transaction value (GTV) to Rs 3,528.74 crore in the quarter. In this, its bus travel service saw the largest increase in GTV at 45.5% YoY, followed by a 42.6% YoY increase in flight GTV. Additionally, the company experienced a 36% YoY growth in its train GTV.
MD and Group CEO, Aloke Bajpai said, “We are making constant progress in our efforts to convert more of our utility users and non transacting users who used to come to us for informational use cases, as we continuously innovate with product and usability enhancements. It was also aided by capacity additions by Railways which led to faster growth than last quarter.”
The firm announced that its active yearly user count for Q2 FY25 was 48 crore.
ixigo’s overall expenses increased by 13% to reach Rs 191.46 crore in Q2 FY25 from Rs 168.79 crore in the same quarter last year.
ixigo allocated Rs 38.65 crore in employee benefit costs, an increase from Rs 35.92 crore in Q2 FY24.
Other costs climbed to Rs 149.85 crore in the quarter reported from Rs 127.20 crore in Q2 FY24.
The firm also revealed investment plans of Rs 12.54 crore to purchase a 51% stake in the train food delivery platform Zoop Web Services Pvt Ltd.
