EaseMyTrip Back In The Black In Q1 With A Net Profit Of INR 33.9 Cr, Revenue Slips 7% QoQ

After incurring a loss of INR 15 Cr in the March quarter of the previous fiscal, traveltech major Easemytrip is back in the black with a net profit of INR 33.9 Cr posted in the June quarter (Q1) of the financial year 2024-25 (FY25).

EaseMyTrip’s bottom line improved despite its operating revenue declining almost 7% to INR 152.6 Cr in the reported quarter from INR 164 Cr in the preceding March quarter (Q4) of FY24.

It is pertinent to note that the online travel aggregator posted a loss in Q1 FY24 due to a one-time expense of INR 72.4 Cr which consisted of “advances to supplier written off” and trade receivables that were written off. Excluding these write-offs, its profit stood at INR 39.1 Cr in the last quarter.

Meanwhile, in Q1 FY25 both revenue and profitability of the company have improved on a year-on-year (YoY) basis. While EaseMyTrip’s operating revenue zoomed 23% from INR 124 Cr posted in Q1 FY24, its net profit jumped almost 31% YoY from INR 25.9 Cr.

Air tickets continued to be the highest contributor to its revenue, which stood at INR 107.2 Cr in Q1 FY25.

The company’s gross booking revenue (GBR) increased 4.1% YoY to INR 2,274.5 Cr in the reported quarter. Most likely due to seasonality factors, EaseMyTrip’s GBR fell 4.1% in Q1. 

The startup said that its GBR from hotels and holiday packages surged 116.6% YoY to INR 210.7 Cr. Meanwhile, it also witnessed a 139% YoY surge in revenue from its Dubai operations. 

EasyMyTrip’s cofounder and CEO Nishant Pitti said that the company continued with steady operational momentum along with continued focus on profitability during the reported period.

EasyMyTrip acquired a 4.94% stake in ETrav Tech Limited, which is expected to diversify the startup’s service portfolio and enhance its offerings for corporate clients.

Besides, its collaboration with Adani Digital Labs (ADL) to offer duty-free shopping experience to about 2 Mn international passengers at seven major international airports in India through EasyMyTrip’s platform one of the major partnerships for the company during the quarter.

It is also pertinent to note that the company has entered into a strategic partnership with the government-backed Open Network for Digital Commerce (ONDC).

“As per the company’s expansion strategy, EaseMyTrip has opened its offline franchise store model and opened new stores in Karnal, Amritsar, and Bhopal. These additions bring the total number of franchise stores to 16, with a strategic goal of reaching 100 stores by the end of the year,” said Pitti

Zooming Into Expenses

EaseMyTrip’s cut its total expenses to INR 109 Cr in Q1 FY25 from INR 117.5 Cr in the preceding March quarter. However, on a YoY basis, this increased 19% from INR 91.5 Cr in Q1 FY24.

Employee Cost: The company’s employee benefit expenses fell marginally on a quarter-on-quarter (QoQ) basis to INR 23.9 Cr in Q1 FY25. However, it was up almost 37% YoY.

Advertising And Sales Promotion Expenses: EaseMyTrip’s spending under this head fell 29% QoQ and 27.5% YoY to INR 18.2 Cr in the reported quarter.

Payment Gateway Charges: However, the OTA platform saw an 8.6% QoQ and 1.8%  YoY rise in spending in this bucket to INR 16.1 Cr in Q1 FY25.

Discounts To Customers: As per EaseMyTrip’s investor presentation, the company shelled out INR 71.2 Cr as discounts to its customers in the reported quarter as against INR 76.6 Cr in the corresponding quarter of last year.

After the Q1 FY25 earnings announcement, shares of EaseMyTrip were trading 1.33% higher at INR 39.66 by 3.15 PM on the BSE.