In a remarkable turnaround, traveltech giant ixigo, operated by Le Travenues Technology Limited, is back in the black, reporting a consolidated net profit of INR 23.4 Cr in the financial year 2022-23 (FY23). This achievement follows a net loss of INR 21.1 Cr in the previous fiscal year, highlighting the travel industry’s resilience as demand rebounded.
Positive Fiscal Performance: Breaking Down the Numbers
In FY23, ixigo’s operating revenue experienced a robust 32% year-on-year growth, reaching INR 501.2 Cr compared to INR 379.6 Cr in the preceding fiscal. The surge in revenue is attributed to the revival of travel demand and ixigo’s diverse revenue streams, including convenience fees from ticket reservations and income from advertising services.
Domestically, ixigo’s revenue climbed to INR 487.9 Cr in FY23 from INR 369.3 Cr in FY22, showcasing a substantial uptick. Moreover, its ‘export revenue services’ witnessed a commendable 30% YoY growth, totaling INR 13.3 Cr in the reported year.
Total Revenue and Future Outlook
Taking into account interest income, excess provisions written back, and other non-operating income, ixigo’s total revenue reached INR 517.6 Cr in FY23, a significant increase from INR 384.9 Cr a year ago. This financial resilience positions ixigo as a formidable player in the traveltech landscape.
Emphasizing its financial strength, ixigo achieved an EBITDA margin of over 7% in FY23. The company aims to double its gross transaction value run rate, reaching INR 10,000 Cr in May 2023, within the next two years.
Spending Strategies and Expenses Breakdown
While revenue soared, ixigo’s total expenses also witnessed a notable increase, reaching INR 484.3 Cr in FY23, up 1.2X from INR 402.5 Cr in the previous fiscal. Employee costs emerged as the primary contributor, surging 1.3X YoY to INR 126.3 Cr, with INR 102.6 Cr allocated to salaries and wages.
Advertising and promotional expenses witnessed a spike, totaling INR 93.1 Cr, compared to INR 57.5 Cr in FY22. Notably, ixigo invested in high-profile endorsements, featuring actors Jackie Shroff and Suniel Shetty, as part of a new ad campaign.
Future Growth and Market Competitiveness
In the competitive landscape of traveltech, ixigo competes with major players such as MakeMyTrip, EaseMyTrip, and Yatra. Looking ahead, ixigo aims for a 40% revenue growth in FY24, targeting a business scale of INR 700 Cr in the current fiscal year.
Innovation in Travel Planning
Adding a tech-driven edge to its services, ixigo introduced PLAN, an intelligent trip planner powered by ChatGPT. PLAN offers personalized recommendations, suggestions, and itineraries to travelers based on their current locations, enhancing the overall user experience.
IPO Plans and Regulatory Approvals
While ixigo received SEBI’s approval for its INR 1,600 Cr IPO in December 2021, the company deferred its listing plan due to global equity market turmoil. The decision reflects ixigo’s strategic approach to market conditions, aligning its IPO plans with a more favorable financial landscape.
Ixigo’s journey from losses to profits, coupled with its ambitious growth targets and innovative offerings, positions the traveltech giant as a resilient force in a dynamic industry, ready to capitalize on the resurgence of travel demand.
