EasyMyTrip to declare bonus shares, net sales jump 92% YoY in Q2

With a market capitalisation of Rs. 8,286.35 Cr., EaseMyTrip is a mid-cap business that operates in the consumer discretionary industry. EaseMyTrip, established in 2008, is India’s second-largest online travel platform. One of the largest online travel platforms in India, EaseMyTrip, has revealed its financial results for Q2FY23. It reported a record Q2FY23 Gross Booking Revenue (GBR) of INR 1,977.7 Crores, the highest ever in any quarter. Apart from this, the company is now all set to declare bonus shares.

The company has said today in a stock exchange filing that “Pursuant to Regulation 29 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we hereby inform that a meeting of the Board of Directors of the Company is scheduled to be held on Wednesday, November 23, 2022 at 11:00 A.M through video conferencing, inter alia, to consider and approve the allotment of bonus equity shares.”

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On a consolidated basis, the company has reported revenue from operations of 108.5 crore Cr in Q2FY23 compared to 56.65 crore posted in Q2FY22, representing a YoY gain of 91.52%. The company reported a net income of 112.07 crore in Q2FY23 compared to 59.78 crore posted in Q2FY22, representing a YoY gain of 87.5%. “Strong GMV bookings by EaseMyTrip incentivizes on the huge pent-up demand post COVID and growth opportunities within the industry,” said EasyMyTrip in a note. 

The company reported an EBITDA of 40.24 crore in Q2FY23 compared to 36.89 Cr posted in Q2FY22, representing a YoY gain of 9.1% whereas the EBITDA margin stood at 35.9% in the quarter ended September 2022 compared to 61.7% posted in the year-ago quarter. The company reported a net profit or profit after tax (PAT) of 28.22 crore in Q2FY23 compared to 27.13 crore posted in Q2FY22, representing a YoY gain of 4.0% and the PAT margin stood at 25.2% in the quarter ended September 2022 compared to 45.4% posted in the year-ago quarter. Hotel night bookings grew by 69.6% YoY in Q2FY23 while air segment bookings climbed by 52.1% YoY. EasyMyTrip posted earnings per share (EPS) of 1.30 per share in the Q2FY23 compared to 1.25 posted in the same quarter last year.

Nishant Pitti, CEO and co-founder of EaseMyTrip, discussed the subsequent strategy for the following quarters in an interview with LiveMint after the release of Q2 results.

Q1. What are the company’s focuses in FY23? What is the growth strategy after Q2?

The post-pandemic era reflects a strong recovery from the travel industry. In the past quarter Q2 fy23, EaseMyTrip registered a 52% increase YOY in flight bookings on our platform, while hotel bookings grew by almost 70% YoY. We took several marketing initiatives and sponsored sports events as a branding exercise to reach out to customers returning to the fore from a series of tedious lockdowns, with renewed interest in travel and resumption of previously made plans.

EaseMyTrip’s outlook for the proceeding six months includes several expansion plans to scale the business. The company opened offices across countries in the Middle-East, Europe and South-East Asia, including Dubai, London, Singapore, Thailand, and others. We continue to expand and are providing our services while our operations remain based out of India, providing us the opportunity to deploy better cost structures compared to the incumbent companies at the respective locations. We continue to remain consistently profitable

Further, EaseMyTrip plans to acquire other emerging asset-lite businesses displaying profitable growth, here in India. We aim to carry out this strategy over the course of the next six months.

Q2. What has accounted for huge expenses in Q2, and what is the company planning to manage its operations?

EaseMyTrip incurred large expenses in Q2 due to our marketing initiatives. These include sponsoring the Asia Cup 2022, and the Road Safety World Series 2022. The former had a viewership of 4.9 billion, allowing us to reach out to an enormous audience and create awareness around the brand.

Our operations remain based out of India, and the organisation remains automated, leveraging technology to service our customers. We are also the only online travel portal in India with its own call-center for customer grievances and support. We plan to continue forward with our current business model while maintaining profitability.

Q3. Profits were lower or we can say almost flat, but the revenue was higher. Comment on this.

The surge in travel bookings in the calendar year 2023 resulted in a lucrative opportunity for the travel industry at large. The footfall during the subsequent months increased compared to the pandemic, and we doubled our gross booking revenue this quarter to Rs. 1978 crore. Due to the marketing initiatives taken by EaseMyTrip, growth in profits was restricted to only 4% in profits YOY.

The shares of EasyMyTrip Ltd closed on Friday at 385.00 apiece, down by 2.02% from the previous close of 392.95. On a YTD basis, the stock has gained 43.00% so far in 2022.

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EasyMyTrip to declare bonus shares, net sales jump 92% YoY in Q2

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