Analyzing EaseMyTrip’s Expenditure Trends: Advertising, Employee Benefits, and More

EaseMyTrip, a prominent player in the travel booking segment, faced a setback in the fourth quarter ending on March 31, 2024 (Q4 FY24), incurring a net loss of INR 15 crore. This marked a notable downturn compared to the profit of INR 45.6 crore reported in the preceding quarter.

Root Cause Analysis

The Q4 loss can be primarily attributed to a one-time expense amounting to INR 72.4 crore, comprising write-offs for “advances to supplier” and trade receivables. Excluding these exceptional items, EaseMyTrip would have reported a profit of INR 39.1 crore. This reversal of fortunes underscores the impact of exceptional expenses on the company’s bottom line.

Performance Overview

In comparison to the year-ago period, EaseMyTrip’s profitability witnessed a decline, with the Q4 FY24 loss standing in contrast to the profit of INR 31 crore reported in the same quarter previously. On an annual basis, EaseMyTrip’s full-year profit for FY24 amounted to INR 103.4 crore, reflecting a 23% decrease from INR 134.1 crore in the previous fiscal year.

Revenue Insights

Despite the challenging profitability scenario, EaseMyTrip recorded a marginal increase in operating revenue for Q4 FY24, reaching INR 164 crore compared to INR 160.7 crore in the previous quarter. Notably, this marked a substantial improvement from the INR 116.5 crore reported in the corresponding quarter of FY23. Air ticketing emerged as the primary revenue contributor, accounting for INR 131.6 crore in the quarter, with the remainder derived from hotel package bookings and other revenue streams.

Expenditure Analysis

EaseMyTrip’s total expenditure in Q4 FY24 amounted to INR 117.4 crore, representing an 11.8% increase from the previous fiscal year. Notable expense categories include advertising, where the company allocated INR 25.6 crore, reflecting a 46.5% increase from the preceding quarter. Additionally, employee benefit expenses rose to INR 23.3 crore, while payment gateway costs increased to INR 14.7 crore.

Market Performance

EaseMyTrip’s market performance saw its shares trading at INR 44.16 per share at the close of the market. This figure provides a snapshot of investor sentiment and market perception regarding the company’s financial performance and growth prospects.

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