Company Update - Easy Trip Planners - ICICI Direct

Margins decline QoQ; market share improves...

- Gross revenues grew 28.6% QoQ to Rs. 169.1 crore. However, EBITDA margins declined 993 bps QoQ to 21.7%. This led to PAT de-growth of 15% QoQ to Rs. 28.2 crore. Key reason behind the fall in the margins was higher marketing spend, which increased sharply (up 258% YoY or 1.5% of GBR)

- However, this has helped the company to grow its market share, which is visible from GBR growth that saw sequential jump of 19% to Rs. 1978 crore. In terms of volume, its passenger volume grew 26.6% QoQ to 28.3 lakh while industry air passenger reported de-growth of 7.9% QoQ to 2.99 crore

Key triggers for future price performance

- Gross booking revenue (GBR) for H1FY23 was at Rs. 3,641 crore, which is equivalent to GBR for full year FY22. With full resumption along with the company's aggressive advertisement campaign to gain the market share, we expect GBR to grow at 41.2% CAGR during FY22-25E

- Lean cost model and no convenience fee strategy remain key pillars supporting such rapid, profitable growth. This has also led to stickiness by customers with healthy repeat transaction rate of ~86% in the B2C channel

- International expansion into the countries like UAE, Philippines, Thailand, and US to help boost revenues, going forward

- Further benefits would accrue from high margin segments like hotels (Traviate - B2B technology platform, Spree Hospitality - hospitality management company and bus booking segment (Yolo - intercity mobility platform)

For details, click on the link below: Link to the report

Shares of Easy Trip Planners Limited was last trading in BSE at Rs. 381.35 as compared to the previous close of Rs. 392.95. The total number of shares traded during the day was 140959 in over 7252 trades.

The stock hit an intraday high of Rs. 394.60 and intraday low of 373.35. The net turnover during the day was Rs. 54429213.00.

Source : Equity Bulls

Keywords

EasyTripPlanners INE07O001018 EASEMYTRIP CompanyUpdate ICICIDirect