Yatra Online (YTRA) 21 Dec 212022 Q2 Earnings call transcript

Good day and welcome to the Yatra second quarter 2022 financial results conference call. Today's conference is being recorded. At this time, I would like to turn the conference over to Manish Hemrajani. Please go ahead.

Thank you Cecilia. everyone. morning Good fiscal period Yatra's XXXX results financial Welcome September second XX, the ended XXXX. for to quarter I am pleased by to be joined on and Dhruv Yatra's the Co-Founder, Shringi. CEO call today management's XXXX. including your responses The of following XX, questions, discussion, reflects December today, views to as undertake to update not the or obligation any do revise information. We

subject based remarks, several beliefs that that to me the beyond include to forward-looking uncertainties constitute COVID-XX differ materially, discussion remind to the begin on current that These and pandemic. you are expectations results and management's we are Before allow certain our and cause may actual statements formal the related risks could control. impact assumptions to including maybe statements during expectations of the which factors and made company's

of the to and For the and SEC to ahead. morning. these with the release refer call go the from our this IR Dhruv. Copies let of of website. risks, over Dhruv, available filings SEC please and please are With our press that, this our me on turn section filings a other description

Good through morning its variants. Manish. stay and as for to thank our families and hope and that you Thank you joining us. your navigate we safe the continue you pandemic way I everyone new

But a November, value. had IPO. and act India I and in we this to As improve strategic greatly catalyst flexibility shared with of options with more to shareholder enhance course believe, for an will will later. we bankers explore detail working are following you as action, lawyers Yatra's into our in I India get

Now on our results. to

the of XXX% the September increase represents Indian growth mark. currently strong during XXX,XXX faster in year-over-year. hover from of hovering industry around than counts, to revenue you Case as XX% pleased are period lockdowns quarter summer This results and as a X,XXX that they announce an as with travel was the the This Q-on-Q mark million. We would INRXXX.X Delta-driven recovering and recall, the months. began were we whole, around adjusted

are X,XXX. vaccination dose as of the about million last one of than More vaccinated people remarkably quarter were of now less September about received and was have people doses. of and was up XX% it vaccine at sequential both India's This industry up notably, passengers yesterday XX year-over-year had sequentially. XX% has and truly room hotel outpaced fully XXX% booked our sequentially. nights and been the population people year-over-year the of more least received XXX XXX% XX%. program fact, mass the up XXX growth or up in week or Air million than over XX% In and

was see the our low and of but significant have million. EBITDA had of despite hotel been a in with brand and competitive for million much you And the we the during Indian the INRXX.X positively travelers. continue levels We rapidly Adjusted continues making is growing front This To quarter give we investment intensity nascent are resonate the freights to business. to on in in being the the would million these INRXX.X adjusted business, not or is have of freight the investments it despite us for almost Yatra how profitability in a midst sense pandemic. been EBITDA this improved INRXX.X better would quarter. logistics

approximately passenger cash industry investment you levels. $XX.X exclude or of into about to and highest freight forward saw sheet, the strength U.S. $XXX,XXX, into translates ended recovery the the are was and On adjusted balance in the deposits a to with term dollar up quarter of Omicron equivalents XX% of The solid if balance of this basis, about spread In EBITDA we from adjusted balance about recovered As These numbers revenue level the for and grew October the business. cash a the of down international That in in We cash billion. XXXX, our September October due the XX% the the INRX.XXX XX, said, about September $XXX,XXX travel carried million. a and sheet quarter of on and quarter $XX of XX% million balance month November, have variant. that were November. XXXX bleak in and the December since of pre-pandemic has year-over-year. slowed with

travel, XX% bodes a expect picked content well in We hotels the for domestic December. part towards given recovery of international Domestic recall travel, the year plans the function levels end focus Omicron trends two calendar given of spread and in travel for the strong and people on in shift resurgence quarter their amongst few domestic India the second international bookings placed Indian again the the of class. have our in of of travel Yatra, we international almost realign variant, days restrictions towards middle strong after the travel be And travel. witnessing as first up brand or first the following will the weeks this believe however, of in the quarter Recovery domestic on industry-leading last from of However the based dropping past XXXX. outbreak a November variant. early of Delta is

has continues new pipeline grow meaningfully Our customers prospective as grown to interest inbound post-pandemic. of

compared bookings November large corporate for Despite of in dormant for XX% the inbound is year, offline players. approximately travel in travel being September corporate interest XX% We to believe the signed to and penetration XX% see we pre-COVID India XX% revenue approximately XX% side smaller was November only. corporate approximately market, platform as part our levels. served still the past customers things, Corporate new is relatively grew to gross market A XXXX. of onto corporate by continue of On market in in our increasing the share. corporate online

new accelerate of in growth travel shift in approach accelerated however especially difficult solution do our market travel a to to as as happen we will and India should that fragmented them see be lag business to post-COVID to consumer will for will the for corporate in to online we towards compared but travel companies travel, share of thrive believe The contracts that where corporate working business we to adapt which the country. at the going the renewal that pre-pandemic, also to we we use our higher us bookings, recovery world travel we of technology-enabled growth in without life terms to the believe highly of that slight in of as to more hybrid that and continue technology. like believe corporate reason that than levels in prospective And we we have we with come up And continued travel as of gives would of strength witness tech-enabled recover different. Given have an end don't TripActions. saw conversations this There Globally, the be market, corporate customer. continue corporate forward is November nature will were well, to the ground of in their are economic think any platforms strongly continues be of something and India the months recovery seeing October as rebilling. might we a success terms the the take on

digital growing we of the levers one. have platform adopted business that approach is we We have corporate right our and that believe multiple the travel

more the business Our support validity to early this lends approach. success in the of trade also

update you an give me on the Let freight initiatives. now

than corporate given space, digitizing both management with the our executive we corporate has start. believe technology look our we and months business. logistics together the and rapidly this over the As business have relationships this a significant to scaled up term enterprise few towards longer our head travel past we pandemic, even with potential has airlines larger the capabilities be business us Despite travel

the size industry, is that would low travel business should recall, revenues and to for fragmented be to The about has exhibits and of adoption. one able highly technology We industry this attributes to $X business did multiple industry rapid $X believe in million similar the The expect a decade XXXX we business XXXX. and you as be to between industry what levels year from is the ago. million expansion this a travel freight very achieve of of times

we several over travel We fortunate leverage our freight platform. have be in to our are past building the platform expertise in corporate acquired to years the able building

our are corporate customers. and in platform's confident we scale on and side also to our demand supply type to the existing vendor We side any both remain serve relationships of Additionally, looking freight business. leverage capabilities our for and

base services. customer is leverage platform great corporate is Our for that cross-sell and continue us we a to a to asset

recovery about as optimistic continues momentum. and puts November growth witnessed balance strong sheet Yatra's trends recovery gain to healthy we and well-recognized believe that are that and us position based on our a the brand capitalize in continued in and October We to the

was a shareholders, we stable exit our profitable more telling to a And pre-pandemic. and Yatra result, as position much than better been company value. I As pandemic in be a have shareholder it capitalize the financially will will

during our encourage corporate are new nascent. the yet. levels we travel. variant, years, has be the trajectory. where the on corporate for recovery the significantly past-COVID. signing lowered in size we secular We back India that XXXX. we pandemic, on travel, that hit the grow are seen When ahead that we the out low believe optimistic in inflection is a worst the of additive in in of enough despite customers We to we leaders, opportunity in digital case the strong growth the have of network, and other mid-teens will growth come the to Indian and an a believe platform travel point the has our domestic now revenue in business travel, coming vaccination the level is Internet potential guardedly to in pandemic lockdowns our Indian not us We believe also as Omicron quickly. I and we of travel to a growth travel counts now of of out recover We completely better June of hotel we recover business am Yatra has the corporate the saw pre-pandemic are behind the the believe woods should in trough The

thank am only honestly we In these stood to will the and understanding before by higher made want Yatra have I a significantly are during who profitability through to it's to efficiency the time improve of flow. believe efforts and shareholders our your rewarded. times. patience levels cash lead and pandemic hopeful matter addition, trying that I operational of

to a few open comments. the would for call I I make Before questions, like additional

potential seen India You recent the on in may press Yatra's of our India have release listing subsidiary.

As to consider team to shareholder. and strategy, our execute for regularly Yatra's we enhance opportunities management our continue Board value

said the to capital Yatra's the growth including that for support and travel an are for Yatra. Yatra efforts retail in travel that coverage. brand, the There benefits growth exchanges and strategy, our India, strategy business provide strongly. are connection part we India listing value institutional optimistic evaluation. strengthen to and M&A support who include this additional Yatra's us can proceed the future about to assurance from that are listing amount who in liquid leading ongoing give operating. we markets. capital and the no having listing additional which research believe, company the accelerate sheet add engaged of these by additional would seen strength there believe access that pool ongoing U.S. listing an familiar month investors used confidence, currently would additional in a strengthen in shareholders, approve be towards It further has that November restricted we our of unlock, application in India that of ongoing give belief efforts, The potential and already As is will potential But the is come of a or working back with for believe provide are financial value of participating We and however recovery a tremendous in opportunities creation us with our will U.S. the balance we and with that this stock that, its advisers in we sell-side and of business will but October capital, local have

seen through domestic where travel like we of obviously and have cycles believe and that that shorter you go we these quite variants strength that over of so to and said will the hiccups periods can time. now it these might is market I all market the will grow to term, could despite impact have. that, resilient we strongly to likely the Indian happened would Having any we for continue questions business We are to Indian new the in emerge short but take Manish that hand

you can the for open please Cecilia, call Q&A.

[Operator Instructions].

We Buck take Scott ahead. first our will Wainwright. question H.C. go from now from Please

us as percentage I morning of international was you for Thank was revenue you remind time. the travel what pre-pandemic? curious, can Good guys. Hi. a

Sure.

was XX% XX% international So approximately travel pre-COVID revenue. to of

I the the that then are moment? place? And helpful. that demand at recovery slow Or That's guess, in just certain of that Okay. is consumer is in restrictions international, driven because by

No. It's the driven largely by restrictions.

the down out picked restrictions it's side. market, strong the period to October saw countries But and where, bit. up So where we the in are and Omicron of demand month additional we restrictions The news like on that has happening came international domestic resilient seeing a December have however, on started slowed placing in the of domestic travel, the this be international only international again, and growth month November, continues demand very strongly. in of quite eased,

there international, time, while demand feel, a the short being to for international period that the confident we able feel in up in open drop, some at internationally. happen be should the which domestic least markets offset I the will time drop of in fully might relatively be So till

right. really you position time? process And investments do additional make to then this to business to completed have am very to you at curious what point that helpful. that All this scale? guys freight, at That's need I Or kind of turning

made and ranging in terms marketing to resources, So been which operational sales the resources. which is largely is from and investment has of technology

have team up quite the significantly. We ramped

level. a will investment you start more incremental onwards, happening Now seeing gradual at

that for in. from seen in come And happened initial a sharp happen quarter. a will as the more cost has cost in needed to we the increase here, gradual you opposed has So that see to and that ramp-up increase the have last

then And one Dhruv. helpful, last me. very That's for Great.

to have around real disciplined marketing some been back investment am guys pre-pandemic kind You of there curious levels? may spend. I see we pretty when

needing to truly traffic we incrementally. coming we the come brand strength think a are to forefront seeing the in I seeing today, of and are the without of degree high invest

that's come also platforms of creative have on very influencers up out well ways really working with and with Instagram some We micro us. working for like

think away we kind right we benefiting is now. My quarters marketing. the want in is another maybe still can from tap we first large-scale I So investment growth sense of see of would consumer are that from doing what to organically, couple which that are out we

time, the very the congrats helpful. That's And on appreciate all I guys. progress.

Thank all. Not you. at

Anja Please take now will go Soderstrom ahead. Sidoti. We our next from from question

my India. Great. the How And you just talk direction them to have you churn And question. did travel? Thank for taking sort It sign? the congratulations. corporate the can corporate are customers size the like about many in seems and things I a you trending right in for of of any travel. new in question seen you you got

Sure.

for coming signed, which freight. we customers. customers, customers So new who in cross-selling people approximately corporate new XX-odd largely new terms also of a are we And that have signed these few and are in are these travel for

churn, is time than rate at of X% in I per terms In annum. less think this point churn our

you or length they a they a contract it's sign with business, sign, do very once sticky right? typically And So of stick Okay. you?

Yes.

the deeply where corporate customer the are the integrate the side, platform, does very the along see And put technology rates customers, we on upfront on the XX%-plus platform. be systems, implement it the kind to business. So HRIS tend their making ERP we and of with because to a that investment retention their travel also our workflows hence, sticky we into systems

and a tightly customer's from So solution, ours. becomes which from more it coupled it stickier makes a perspective

the onboard see Or Okay. travel corporate the does new the mostly drive for customers? freight business you business? any new coming And do customers

it in customers. almost split But of XX% like kind today, XX-XX of freight freight. of account travel would be is on account the also coming a on XX% in new So with driving and coming

marketing Okay. spend Thank you. the And you already the touched on need. and

in do see because really growth competition? need see But up now back don't right of that you organic You what ramp a see to we strongly. the coming terms

point the It rational a landscape what to of any a time that benign competitive it's in hence for need competitive large-scale is seems investment. historically. the marketing at we lot more than we this really extent. terms also, see like the don't market think In been And landscape

historically the has are now, view. remain till landscape circulating getting of point least, from there we recall of been the because have travel Tier For perspective, a seen we I our landscape we X, a Tier is fair is as organic us, maintaining brand today sensible brand, high, into have that. competitive what's high. where a from think markets the benefit And But fairly bit the spent also overall, recall on is X brand markets at competitive

And then challenges is think were easing I rate XXX-people business, you is building because on any said Okay. are you. are And increasing? is of How that Or - team. that trending? there Thank things a freight the hiring? the planning in to terms going? in you How that up vaccination

Sure.

of the So as hiring view. pretty has we to we lifting up. we much, I have And needed definitely mentioned, the process from of heavy done hiring bulk picked point are that a do

the We the gradual from them. and be that to to got ramp-up. size have here, scale we it's a teams need going And more

been needed done big four-odd the done now. effort that in the be So to months has last

hiring terms market them are pointed we hire well. out more and out, has are our has more interview and In rightly it process, the you given to people, that to now as people the opened as vaccinated, able ability of eased up physically if

it So all easier are to of making faster. ramp-up things those

be should sort that But also, there that time the news And looking out listing. line a or any for time on Thank of Okay. you is frame you. overview any we India for? gave of an

it few through And to term it expect what at we in has does SEC process go documents. which where least it. the XX filing in to typically regulatory a we XX the between to then are weeks in and weeks review over And India, regulator, the SEBI, like takes is looking clear the coming reviews near is at the So U.S., file. to

line So kind that's of at. the broadly are that looking we time

the maybe regulatory to of or subject are at all part towards end second So the looking first clearances, we quarter. quarter the of early

me. your was much you time. so Okay. that for all Well, for Thank

Thank you.

Instructions]. [Operator

our from Zacks. Moore Tim take from now will We next question

nice just press of I first been maybe nice XX% the Yes. the and seeing of Thanks. growth December, already the travel but drops keep in that past see kind bookings? week do release A you in was it past of to domestic you wondering, questions were you week mention topline week. a of recovery-driven have vaccinations put am the my Is start and because addressed. nice booking to of few a the It rising. easy enough for Or two-year then uptick an year ago uptick kind the think that's comparable? faced the most kind in

I that comparative was a It's this hard versus was in numbers, comparative year-over-year drawing. Yes. over year-over-year. not compare. so that doing fact was to in I Because the The become November environment comps

November last a seen recovery have was compared happening travel there of days, the few to in we domestic itself, drop on XX%, while So the front.

We we now. are close still to to not pretty getting but that back November levels, the fully are

the for looking of kind to a home of just travel How Is to the the leisure you of and was corporate are domestic of XX% in still of recovery? year you that. to same kind at another kind bookings. and camp. think from like stop to wins good might corporate to the that for pre-COVID the OTAs it working kind get to that's by only to back corporate are folks It's get hear yourself on office not lag I compared half of do have be maybe it nice and bookings, you hear. really And back level be mean all and much pre-COVID level at might

we And between and ramps to corporate in I this in a year that What not mentioned, had QX, as we of encouraging. October have November had pre-COVID saw back levels. in Omicron we they to pleasant in XX% happened, would customers was were was happened kind XX% indication almost the least XX% of from largest pre-COVID November. of quick travel at of And our very of surprise. the was The numbers that somewhere been some

spend more and is might But come the those, ramp recover weighted at XX% a a only been say, and let's is seeing the if a should corporate were So offset view, XX% point side difference pre-COVID corporate help happening there, expecting a travel, us travel of we drop as or we quick in, the in well. customer at corporate basis, than will The have fairly to were two wins sense per average consumer on lag not spend. as level, have of quarter which look I we that max. customer it My think between on be customer I And between, new they should right. from to only the seeing. we per

XX% estimate, freight that that include And does for separate? maybe level cross-selling? that is Or

No. just this. comparing on like-for-like is This pre-COVID incremental Freight a yes. travel, travel is basis, completely to to

kind million and already maybe That's the year of year, was nice I $X $XX you million double to maybe forward, year And following wonderful million it it next year. beyond possible guidance revenue, it's for each think for to you $X least year? this you think I trending freight, at can million Good. heard $X next Do the going hear. hear think to is

are those kinds we think I of at numbers. So trending

doubling We the in from I a we towards. are we right, are that's that aiming projection of that well, there this comfortable definitely on we year-over-year guidance terms that yes, seeing And sharing, as with something are sharing. think are

it you think we keep been place negotiated put things just question And same because service shouldn't packages. some costs. When know will low. quite and I could that back? was hotel start It's that And and right, have COVID, back level probably down. to the to pre in things it's it and go that tied So more one travel packages probably do coming packages on you

Yes.

now. consumer seeing People groups. traveling right closed behavior are family there's there, also in a in over we that are So change

who large each groups other package traveling don't know people groups. don't in You together of see

is smaller with people flights people a this don't business booking getting travel they the do of part who want with to with them. along taking that where that actually the And than where then maybe is unbundled. And with with it's don't to baking are others rather more package groups are us So people into large know. pandemic and traveling hotels

Okay. Good. No, that's really helpful.

if right? so stay longer, service continues year, behavior help the And that net percentage leverage, cost next revenues, low should for the with of that operating pretty maybe and

right. also more of That's fully the online part packages needs one And is business which is and still intervention. not manual

unbundling So leverage. are booking where operating the customers that is itself providing flight greater online and the actual of even hotel

That's very for helpful. color that. it And thanks questions. the on for That's my

you. Thank

no in at would there speakers the queue for turn to are I questions closing the or call to remarks. As your time, additional like back any this further

We Cecilia. joining speaking for thank you you Well, the call look forward in to everyone today. term. Thanks the to near

Thank you. you. Stay safe everyone. Thank

gentlemen, and will conference today's may your now Thank Thank for disconnect. participation. Ladies you you. call. you That conclude