RateGain Q1: Profit Jumps 82% YoY To INR 45.37 Cr

SUMMARY

While profit grew on a year-on-year basis, it declined 9% on a quarter-on-quarter basis

RateGain’s operating revenue stood at INR 278.28 Cr in Q1 FY25, up 26% YoY and 0.5% QoQ

EBITDA grew 31.7% YoY to INR 49.77 Cr, while EBITDA margin expanded to 19.1% as against 17.6% in the year-ago quarter

Traveltech SaaS startup RateGain’s consolidated profit after tax (PAT) jumped 82% to INR 45.37 Cr in the first quarter of the financial year 2024-25 from INR 24.91 Cr in the year-ago quarter.

However, it declined 9% on a quarter-on-quarter (QoQ) basis from INR 50.02 Cr in Q4 FY24.

Operating revenue rose both on a sequential basis and a year-on-year (YoY) basis. RateGain’s operating revenue stood at INR 278.28 Cr in Q1 FY25, up 26% YoY and 0.5% QoQ.

The startup said that increased traction across long-standing marquee relationships, “operational excellence” and focused sales and marketing efforts continue to drive revenue growth, margin expansion and pipeline momentum.

In its investor presentation, the startup said its EBITDA grew 31.7% to INR 49.77 Cr during the quarter under review from INR 37.79 Cr in the year ago period. On a QoQ basis, EBITDA declined 8.3% from INR 54.25 Cr.

EBITDA margin in the quarter stood at 19.1% as against a margin of 17.6% in the year-ago quarter. However, it contracted from 21.2% in the preceding March quarter.

“We have had a steady start to FY25 with balanced performance, consolidating our position from a record year gone by… While the travel industry remains steady, we are mindful of the growing global uncertainties and are confident that our resilient business model and adaptive approach will help navigate these challenges,” Rategain chairman and MD Bhanu Chopra said.

The company said it made a total of 3,299 new customer additions in the June quarter. Malaysian Airlines, GreenMotion, and Hahn Air were among the new startups added during the quarter. Its “total pipeline” at the end of the quarter grew to INR 555.3 Cr at the end of the quarter, while new contract wins brought in INR 62.1 Cr during the quarter.

RateGain offers SaaS solutions for the travel and hospitality industry. It offers data as a service (DaaS), martech, and distribution services to its clientele.

It claimed to have seen a steady growth in booking volumes on the back of healthy travel demand during the June quarter. It said that global travel is currently at 104% of 2023 levels and there’s growing traction in Asia Pacific and European regions.

While its martech services contributed the highest 47.7% (INR 123.89 Cr) to its revenue during the quarter under review, DaaS and distribution vertical accounted for 31.9% (INR 83.03 Cr) and 20.4% (INR 53.09 Cr) of revenue, respectively.

In the quarter, RateGain launched a new platform, “Navigator”, to help hotels track demand, get rate insights and fix parity issues driving efficiencies for commercial teams.

Shares of RateGain ended today’s session 5.38% lower at INR 763.15 on the BSE.