Yatra Online, a prominent online travel aggregator (OTA), faced a challenging fiscal year 2023-24 (FY24), slipping into the red with a consolidated net loss of INR 4.5 Cr. This marked a significant downturn from the net profit of INR 7.6 Cr recorded in the preceding fiscal year.
Factors Contributing to Loss
The loss incurred by Yatra in FY24 was primarily driven by a substantial increase in expenditure, which surpassed revenue growth. Despite a noteworthy 11% surge in operating revenue to INR 422.3 Cr, the OTA’s profitability was overshadowed by escalating costs.
Financial Performance Overview
In the fourth quarter (Q4) of FY24, Yatra’s consolidated net profit declined by 37% to INR 5.57 Cr compared to INR 8.96 Cr in the corresponding period of the previous year. Operating revenue during this quarter experienced a 10% year-on-year (YoY) decline to INR 107.7 Cr, largely attributed to specific accounting adjustments.
Yatra’s earnings before interest, taxes, depreciation, and amortization (EBITDA) witnessed a significant drop of more than 48% YoY in Q4 FY24, reflecting operational challenges amidst the evolving market dynamics. Similarly, the full-year EBITDA declined by 47% YoY to INR 27.3 Cr.
Operational Highlights
Despite financial setbacks, Yatra reported a 12% YoY increase in gross bookings during Q4 FY24, driven by a notable 13.5% growth in air gross bookings. The resurgence in international travel demand contributed to this growth, particularly in what is typically the seasonally weakest quarter.
On the domestic front, Yatra recorded a commendable 24% YoY growth in domestic air passengers, underscoring its resilience and market penetration efforts. The company also expanded its corporate clientele, securing 25 new corporate accounts in Q4 FY24, including a significant partnership with a leading public sector bank in India.
Expense Analysis
Yatra’s total expenses surged by 16% to INR 449.5 Cr in FY24, propelled by escalating costs across various operational domains:
- Employee Cost: Witnessing an 18% increase, employee benefit expenses emerged as the largest expenditure head, reaching INR 128.5 Cr in FY24.
- Service Cost: Spending in this category surged by 34% YoY to INR 86.3 Cr, reflecting investments in service enhancement initiatives.
- Marketing & Sales Cost: Advertisement expenses soared by 37% YoY to INR 45.9 Cr, underscoring the OTA’s efforts to bolster its market presence amidst intense competition.
Strategic Initiatives
Yatra’s strategic initiatives, such as the recent launch of an expense management solution targeting enterprise clients, demonstrate its commitment to diversifying its product portfolio and addressing evolving customer needs.
Despite the fiscal challenges encountered in FY24, Yatra remains focused on leveraging its operational strengths and market insights to navigate the dynamic landscape of the travel industry and drive sustainable growth in the future.
