Momentum stock: EaseMyTrip trades flat after reporting 518 per cent jump in Q1FY22 net profit
Profitability was achieved on the account of an increase in margins, commissions coupled with enhanced operational efficiency and cost rationalisation programmes.
Gross booking revenue came in at Rs 356.7 crore, up by 261 per cent as compared to Rs 98.7 crore in the corresponding quarter of the previous fiscal year. Total expenses also shot up by 64 per cent from Rs 8.4 crore in Q1FY21 to Rs 13.8 crore in Q1FY22. The company witnessed a 239 per cent increase in the air ticket booking segment on a YoY basis whereas train, bus, and other segment bookings reached 80 per cent volumes of FY21 in Q1FY22 itself.
EaseMyTrip generated a profit before tax (PBT) of Rs 20.8 crore to become the highest and the only profitable travel portal India, despite the severe disruption in the travel industry caused by the second wave of the pandemic.
EasyMyTrip’s profit after tax (PAT) for Q1FY22 grew by 6 times to Rs 15.4 crore as against a net profit of Rs 2.5 crore in Q1FY21. Profit after tax margins improved by 2.345 basis points and stood at 44.4 per cent for the quarter ended June 2021. Profitability was achieved on the account of an increase in margins, commissions coupled with enhanced operational efficiency and cost rationalisation programmes.
Commenting on the results, Nishant Pitti CEO & Co-Founder said, “With a substantial decline in cases and vaccination numbers picking up, we are optimistic about the recovery of the travel industry, and expect to sustain our growth on the back of strong pent-up demand for travel. Apart from the airline ticketing vertical, we will also look to tap into growth opportunities in the hotels & holiday sector to enhance revenues and profitability, going forward.”
EaseMyTrip was able to sell 10.85 lakh air segments while the market leader sold 24.66 lakh air segments. Non-air transactions (hotel, train, bus, etc) for Q122 stood at 1.95 lakh, whereas for Q1FY21, it was a mere 7,897 transactions.
EaseMyTrip is one of the leading online traveling agencies in India. It has ranked second in terms of booking volume and third in terms of gross booking revenues for FY20. The company had 10.32 million registered customers as of March 31, 2020, and it is the only profitable player in the last three financial years amongst the online travel agents (OTAs), based on net profit margin.
The scrip of Easy Trip Planners opened at Rs 480 per share and touched an intraday high of Rs 493.25 per share today.