Yatra Online, Inc. Q2 FY2025 earnings call

• Completed acquisition of Globe Travels on September 11, 2024, adding 360 new customers and strengthening market presence in corporate travel.
• Hotels and Packages segment had 68% YOY gross booking growth, with organic growth of ~44% and contribution from Globe acquisition. Adjusted EBITDA for the quarter was INR 66.7 million, up 91% YOY.
• Expense management solution RECAP is in pilot phase with large customers, showing promising responses.
• Launched Corporate Platform Partners Program, partnering with DW Travel to offer differentiated travel products.
• Became first Indian travel management company to integrate IATA's new distribution capabilities.
• B2C segment facing competition but stabilized volumes, with brand recall helping offset headwinds. Attach rate of personal travel from corporate customers up ~20% YOY.
• Revamped user experience on website and mobile apps with encouraging initial response.

For the quarter ended September 30, 2024, total revenue was INR 2.36 billion. Air gross bookings fell 10% YOY to INR 13.3 billion. Hotels and Packages segment saw gross bookings increase 68% YOY to INR 3.37 billion. Adjusted EBITDA for Air Ticketing business was 7% and 11% for the Hotel and Packages business. Overall adjusted EBITDA was INR 66.7 million, up 91% YOY.

• MICE expected to grow double-digit, aiming to double combined MICE run rate in next 3 years.
• Synergies from Globe acquisition expected to exceed INR 60 million per year, with potential for more.
• Expect MICE growth to continue at 20%-25% from current base for next 2-3 years.

• B2C segment facing price competition from domestic suppliers.
• Regulatory process for fungibility between US and Indian stocks is time-consuming with multiple jurisdictions involved.

Q: Could you provide color on the integration process with Globe India and when cross-selling might start?

A: Integration steps include supply integration already in place, with cross-selling from early January as technology is implemented for Globe's customers.

Q: What's driving price competition on B2C business and how long might it last?

A: Price competition initiated by a large airline in Jan 2024, likely to continue, with focus on cross-selling other services like hotels, car rental, etc.

Q: Status of fungibility between US and Indian stocks and Q3 business outlook?

A: Fungibility work in progress with regulators, time-consuming but progressing. Q3 is not strong for corporate travel as holidays in Jan-Feb-March are stronger for business travel.