TBO Tek, the recently-listed B2B travel portal, has reported impressive financial results for the fourth quarter of the financial year 2023-24, showcasing robust growth in profitability driven by its hotels and packages segments.
Strong Profit Growth Amidst Quarter-on-Quarter Decline
The company recorded a notable 64% year-on-year increase in profit after tax (PAT), reaching INR 46.4 Cr in Q4 FY24, compared to INR 28.2 Cr in the corresponding period last year. However, there was a slight decline in PAT on a quarter-on-quarter basis, dropping from INR 50.8 Cr in the previous quarter.
Boosted by Jumbonline Acquisition
The Q4 results include the performance of Jumbonline, a Spain-based entity acquired by TBO Tek in December the previous year, which contributed significantly to the bottom line growth.
Revenue and Segment Performance
TBO Tek’s operating revenue surged by 31% YoY, reaching INR 369 Cr in Q4 FY24. The revenue from the hotel and packages segment saw a remarkable 41% YoY increase, amounting to INR 271.8 Cr, while the air ticketing vertical witnessed a 7.4% YoY growth, generating INR 87 Cr in revenue.
Steady Growth and Market Reach
Founded in 2006, TBO Tek has established itself as a key player in the travel solutions sector, connecting over 164K buyers across 100 countries with more than 1 Mn suppliers. The gross transaction value (GTV) soared by 22% YoY, reaching INR 7,511 Cr during the reported quarter.
Outlook and Strategic Initiatives
Gaurav Bhatnagar, the company’s co-founder and joint MD, expressed optimism about future prospects, emphasizing a strategy focused on organic and inorganic growth to drive EBITDA margin expansion. The company plans to continue investing in global market development, supply strengthening, and platform innovation, while exploring strategic inorganic opportunities.
Successful Listing and Market Performance
TBO Tek’s strong financial performance comes shortly after its listing on the stock exchanges, with shares listing at a premium of 55% on the NSE and 50% on the BSE over the issue price. Despite a modest 1.2% gain since listing, the stock exhibits promising growth potential, closing today’s trading session at INR 1,396.9 on the BSE.
