The traveltech major’s net profit also declined over 16% from INR 31.1 Cr reported in the preceding quarter – Q4 FY23
Increase in discounts due to its 15th anniversary celebrations hurt EaseMyTrip’s bottom line despite the company posting a record quarterly gross booking revenue
Operating revenue jumped 41.5% YoY and 6.3% sequentially to INR 124 Cr in Q1, while total expenses almost doubled to INR 91.6 Cr
EaseMyTrip reported a 21.8% decline in profit after tax (PAT) to INR 25.9 Cr in the June quarter (Q1) of the financial year 2023-24 (FY24) from INR 33.1 Cr in the corresponding quarter of the previous fiscal hurt by a sharp increase in customer discounts.
The traveltech major’s net profit also declined over 16% from INR 31.1 Cr reported in the preceding quarter – Q4 FY23.
The decline came despite the company posting a record quarterly gross booking revenue (GBR) at INR 2,371 Cr in Q1 FY24, up 42.6% year-on-year (YoY). EaseMyTrip’s GBR in the reported quarter was also up 10.6% from the previous quarter.
EaseMyTrip’s operating revenue also jumped 41.5% YoY and 6.3% sequentially to INR 124 Cr in Q1 FY24.
Total discount provided to consumers grew to INR 76.6 Cr in the quarter under review from INR 43.9 Cr in the year-ago quarter. It also jumped 24.5% quarter-on-quarter (QoQ).
In a statement, EaseMyTrip said it recorded “remarkable” volume growth across all categories. While it sold 32.1 Lakh air tickets (net of cancellations) in Q1 FY24, up 43.3% YoY, total hotel nights sold in the quarter stood at 1.6 Lakh as against 0.7 Lakh in the last year’s quarter.
Bookings in the other segment, which include trains, buses, and more, also saw a 39.6% YoY growth to 2.2 Lakh in Q1 FY24, the startup said.
EaseMyTrip’s EBITDA INR 37.5 Cr, while EBITDA margin for the quarter stood at 29.6% as against 49.7% in Q1 FY23.
It must be noted that EaseMyTrip celebrated its 15th anniversary with a mega sale by offering discounts across segments during June 1, 2023, to June 10, 2023. It offered up to 24% off on domestic flights, up to 40% off on international flights, up to 60% off on hotel bookings, and more.
EaseMyTrip’s total expenses in Q1 FY24 skyrocketed to INR 91.6 Cr from INR 47 Cr in the corresponding quarter of the previous fiscal.
It spent INR 25.1 Cr towards marketing and sales promotion, a jump of almost 142% YoY. The company’s employee benefits expense also rose 80% to INR 17.5 Cr from 9.7 Cr reported in Q1 FY23.
Besides, EaseMyTrip also paid a service cost of INR 7.4 Cr during the reported quarter, which was nil in both Q1 FY23 and the preceding March quarter.
Its Dubai business clocked a GBR of INR 53 Cr in Q1 FY24, growing 22.3% QoQ.
Shares of EaseMyTrip ended Monday’s trading session marginally higher at INR 40.57 on the BSE.