EasyMyTrip Explains Bonus Stocks, Q2 Net Sales Up 92% YoY | Wbactive

With a market cap of Rs. 8,286.35 Cr., EaseMyTrip is a mid-cap company active in the consumer discretionary industry. Founded in 2008, EaseMyTrip is India’s second largest online travel platform. One of the largest online travel platforms in India, EaseMyTrip, has announced its financial results for Q2FY23. It reported record gross booking revenue (GBR) for the second quarter of fiscal 2023 of INR 1,977.7 crores, the highest ever in a quarter. Apart from that, the company is now ready to declare bonus shares.

The company stated in a stock exchange report today: “In accordance with Regulation 29 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we hereby give notice that a meeting of the Board of Directors of the Company is scheduled for Wednesday, November 23, 2022 at 11:00 a.m. via video conference to, among other things, review and approve the award of Bonus Shares.”

On a consolidated basis, the Company reported income from operations of 108.5 crore Cr in Q2FY23 compared to 56.65 crore was released in the second quarter of fiscal 22, representing a 91.52% annual gain. The company reports an annual profit of 112.07 crore in Q2FY23 compared to 59.78 million was released in the second quarter of fiscal 22, for an annual gain of 87.5%. “Strong GMV bookings through EaseMyTrip are a stimulus to the huge post-COVID pent-up demand and growth opportunities within the industry,” EasyMyTrip said in a statement.

The company reported EBITDA of 40.24 crore in Q2FY23 compared to 36.89 Cr was booked in the second quarter of FY22, an increase of 9.1% year-on-year, while the EBITDA margin was 35.9% in the quarter ended September 2022 compared to 61.7% in the same quarter last year. The company reported net income or profit after tax (PAT) of 28.22 crore in Q2FY23 compared to $27.13 billion was booked in the second quarter of fiscal 22, representing an annual profit of 4.0%, and the PAT margin was 25.2% for the quarter ended September 2022 compared to 45.4% in the same quarter last year. Hotel room bookings grew 69.6% yoy in Q2FY23, while flight bookings grew 52.1% yoy. EasyMyTrip achieved earnings per share (EPS) of 1.30 per share in Q2FY23 1.25 in the same quarter last year.

Nishant Pitti, CEO and co-founder of EaseMyTrip, discussed further strategy for the following quarters in an interview with LiveMint after the release of the Q2 results.

Q1 What are the company’s focus areas in FY23? What is the growth strategy after Q2?

The post-pandemic era reflects a strong recovery in the travel industry. During the final quarter of the second quarter of 2023, EaseMyTrip saw a 52% YoY increase in flight bookings on our platform, while hotel bookings grew nearly 70% YoY. We have run multiple marketing initiatives and sponsored sporting events as a branding exercise to reach customers who, after a series of protracted lockdowns, are coming back to the forefront with a renewed interest in travel and resuming previously made plans.

EaseMyTrip’s outlook for the coming six months includes several expansion plans to scale the business. The company opened offices in countries in the Middle East, Europe and Southeast Asia, including Dubai, London, Singapore, Thailand and others. We continue to expand and offer our services while maintaining our operations out of India, giving us the opportunity to deploy better cost structures compared to the incumbents in the respective locations. We remain sustainably profitable

In addition, EaseMyTrip plans to acquire other emerging asset-lite companies with profitable growth here in India. We intend to implement this strategy over the next six months.

Q2. What drove the huge spending in the second quarter and what does the company plan to do to manage its operations?

EaseMyTrip incurred large expenses in the second quarter due to our marketing initiatives. This includes sponsoring the Asia Cup 2022 and the Road Safety World Series 2022. The former had a viewership of 4.9 billion, which allowed us to reach a huge audience and create awareness for the brand.

Our operations remain outside of India and the organization remains automated and uses technology to serve our customers. We are also the only online travel portal in India with our own call center for customer complaints and support. We plan to continue our current business model while maintaining profitability.

Q3 Profits were lower or we can say almost unchanged, but revenues were higher. comment on it.

The surge in travel bookings in calendar year 2023 resulted in a lucrative opportunity for the travel industry as a whole. Visitor numbers in the following months increased compared to the pandemic and we doubled our gross bookings revenue to Rs. 1978 million in the quarter. Due to the marketing initiatives taken by EaseMyTrip, profit growth was limited to only 4% of profit YOY.

EasyMyTrip Ltd shares closed on Friday 385.00 a share, down 2.02% from the previous close of 392.95. On a YTD basis, the stock is up 43.00% in 2022 so far.

Get all the business news, market news, breaking news and latest news updates on Live Mint. Download the Mint News app for daily market updates.

More less

.

Leave a Comment