TBO Tek Q3 Profit Declines 2% YoY To INR 50 Cr

B2B travel tech company TBO Tek reported a nearly 2% decline in its consolidated net profit to INR 49.97 Cr in the third quarter of the fiscal year 2024-25 (Q3 FY25) from INR 50.79 Cr in the year-ago quarter.

The Delhi NCR-based company attributed the degrowth in its bottom line to INR 12.5 Cr forex loss incurred during the quarter under review.

On a quarter-on-quarter basis, net profit slumped almost 17% from INR 60.08 Cr.

The company’s adjusted EBITDA jumped 26% to INR 75 Cr in the October-December quarter of FY25 from INR 59 Cr in the corresponding quarter in the previous fiscal year.

Revenue from operations zoomed over 29% to INR 422.18 Cr during the quarter under review from INR 326.85 Cr in Q3 FY24 on the back of strong growth in the hotels and ancillaries segment, both in India and the international markets.

However, operating revenue declined over 6% on a sequential basis from INR 450.69 Cr.

Including other income of INR 16.57 Cr, the company’s total revenue stood at INR 438.76 Cr in the quarter ended December 2024.

Founded in 2006 by Ankush Nijhawan and Gaurav Bhatnagar, TBO Tek offers a wide range of travel services to travel agents and tour operators, such as hotel reservations, flight bookings, holiday packages, insurance cover, car rentals, among others.

“The saliency of our hotel and ancillaries segment continues to grow. We are looking to further drive share of wallet growth and cross-sell through initiatives like Platinum Desk for top hotels and ancillary accounts. With 120 new airports connectivity in the pipeline under the UDAN initiative as per Budget 2025 and an increase in TCS threshold to INR 10 Lakh, outbound travel is expected to get a boost,” said Nijhawan.

In an investor presentation, the company said that monthly transacting buyers on its platform rose 9% year-on-year to 28,657 in Q3 FY25. Meanwhile, the gross transaction volume from its India and international operations surged 26% to INR 7,166 Cr in the reported quarter from INR 5,678 Cr in Q3 FY24.

Revenue Breakdown

TBO Tek saw revenue from air ticketing business decline 12% to INR 73.61 Cr in Q3 FY25 from INR 83.57 Cr in the same quarter last year. On a QoQ basis, revenue from this vertical slid 12.3% from INR 84 Cr.

Hotels and packages business continued to be the key revenue driver for TBO Tek. It contributed INR 337.44 Cr to the company’s top line in Q3 FY25, up 45% from INR 233.04 Cr in the year-ago period. However, revenue from this segment declined 6% QoQ from INR 357.10 Cr.

TBO Tek said that it is witnessing broad-based growth in its international business, with Europe, the Middle East and Latin America demonstrating strong traction. During the December quarter, the company set up new subsidiaries in Indonesia, Greece and Israel to support future growth in the region.

Where Did TBO Tek Spend In Q3?

The company’s total expenditure grew at a faster pace than sales during the quarter under review. Overall expenses ballooned 37% to INR 385.53 Cr during the quarter under review from INR 281.70 Cr in Q3 FY24.  

However, total expenditure declined 2% from INR 394 Cr in the preceding September quarter.

Service Fees: The spending under this head rose nearly 19% to INR 125.52 Cr in Q3 FY25 from INR 105.84 Cr in the year-ago period. However, it declined over 13% from INR 144.57 Cr in the preceding quarter.

Employee Costs: TBO Tek spent INR 100.18 Cr on employees’ remuneration and other benefits in the reported quarter, up 34% from INR 74.82 Cr in Q3 FY24 and 6% from INR 94.55 Cr in Q2 FY25. 

Other Expenses: TBO Tek saw its spending under this head surge 46% to INR 128.70 Cr in Q3 FY25 from INR 88.40 Cr in the year-ago quarter. However, it did not give a break up of these expenses.

Shares of TBO Tek ended Wednesday’s (February 12) trading session 0.43% lower at INR 1,620.25 apiece on the BSE.