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HomeLatest NewsYatra Returns to Profitability in Q2 FY25 with Strong Revenue Growth

Yatra Returns to Profitability in Q2 FY25 with Strong Revenue Growth

  • November 13, 2024
  • Brandz Editor Team
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Yatra Returns to Profitability in Q2 FY25 with Strong Revenue Growth

Online travel aggregator Yatra has posted a remarkable turnaround in its financial performance for the September quarter of the financial year 2024-25 (Q2 FY25). The company reported a consolidated net profit of INR 7.3 crore, marking a stark contrast to the INR 17.1 crore loss recorded during the same period last year. This performance underscores the company’s recovery trajectory and reflects the growing demand in the travel and tourism sector.

Strong Profit Growth on Back of Robust Business Recovery

Yatra’s return to profitability is a direct result of the healthy growth it has experienced across its business segments. The company’s operating revenue soared over 2X to INR 236.4 crore in Q2 FY25, compared to INR 94.1 crore in Q2 FY24. This dramatic rise in revenue highlights the recovery of the travel industry, especially after the disruptions caused by the COVID-19 pandemic and subsequent lockdowns, which had severely impacted global travel and tourism.

On a quarter-on-quarter basis, Yatra’s profit growth was equally impressive, with its net profit surging nearly 81%, up from INR 4.04 crore in Q1 FY25. This sequential jump underscores the company’s continued momentum and its ability to capitalize on seasonal peaks and consumer demand for travel services.

Revenue Growth Driven by Key Segments

The surge in Yatra’s revenue is primarily driven by robust performance across several of its core business segments. The company’s strong operational performance can be attributed to a significant increase in both its domestic and international travel services. Yatra has seen increased bookings across flights, hotels, and holiday packages, which have benefited from the return of consumer confidence and pent-up demand for travel experiences.

The travel tech company’s expansion in its corporate travel services has also played a critical role in boosting overall revenue. Businesses, now in a more stable economic environment, are again investing in travel and employee mobility. Yatra’s efficient use of technology, combined with its ability to scale up services quickly, has given it an edge in both leisure and business travel markets.

Other Income and Total Revenue Surge

In addition to its operating revenue, Yatra reported an increase in other income, which stood at INR 7.9 crore for Q2 FY25. This brought its total revenue for the quarter to INR 244.3 crore, reflecting a growth of 151% compared to INR 97.3 crore in the same quarter last year. The significant jump in total revenue underscores the effectiveness of Yatra’s strategic initiatives and its ability to tap into various income streams beyond just core travel services.

Outlook for the Future

Looking ahead, Yatra is well-positioned to maintain its growth trajectory. As travel demand continues to rise, driven by both leisure and corporate travelers, the company is expected to benefit from seasonal surges in bookings, particularly during festive seasons and long weekends. The company’s investments in technology and customer experience are also expected to drive further improvements in its profit margins and operational efficiency.

The ongoing recovery in global and domestic travel, coupled with Yatra’s strategic efforts to expand its market presence, should continue to support its profitability in the upcoming quarters. As more people return to travel post-pandemic, Yatra’s ability to scale its operations and leverage digital tools for enhanced customer engagement will likely help it maintain a competitive edge in the travel tech space.

In conclusion, Yatra’s return to profitability in Q2 FY25, backed by impressive revenue growth and strategic business initiatives, marks a significant milestone for the company. With a strong foundation for continued success, Yatra is poised to thrive in the expanding travel market, making it an important player in India’s online travel aggregation sector.

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