Yatra Online Limited, one of India’s leading online travel aggregators, has reported a significant decline in its earnings for the first quarter of fiscal year 2025.
The company saw its profits decline by 27.5%, driven primarily by lower volumes in its B2C segment amid intensifying market competition.
Decrease in income
From Yatra Revenue from operations fell to Rs 100.8 crore in Q1FY25, a decline of 6.4% over the previous quarter. The company attributed this decline to a strategic reduction in discounts in its B2C segment, a move aimed at managing rising price competition in the market.
The corporate travel segment shows potential
Despite challenges in its B2C segment, Yatra’s corporate travel business showed robust growth. The company added 34 new corporate customers during the quarter, with a total revenue potential of Rs 202.8 crore.
Yatra CEO Dhruv Shringi highlighted the strength of its corporate travel segment and noted that customer acquisition rates have outperformed industry benchmarks.
“Despite challenges in the B2C segment during the June quarter, the corporate travel segment showed robust growth across all key metrics. We managed to secure 34 new corporate customer accounts. As a leader in corporate travel services in India, our customer acquisition rates remain strong and consistently outperform industry benchmarks. We are currently exploring strategic M&A opportunities to further strengthen our corporate travel segment, with a promising pipeline of prospects under evaluation,” Shringi added.
Profitability is affected by operating costs
Yatra’s overall profitability was impacted by rising operating costs, which included significant expenditures on employee benefits, marketing and technology.
The company’s consolidated net profit for the first quarter of FY25 stood at Rs 4.04 crore, down from Rs 5.99 crore in the previous quarter and down 32.5% from the same period last year.
The company’s efforts to manage costs were not enough to offset the drop in revenue, leading to a decline in profit margins.
Strategic moves and future prospects
On August 12, 2024, the Board of Directors of Yatra Online Limited approved a composite plan of merger involving Yatra Online Limited and its six wholly-owned subsidiaries.
The measure aims to streamline operations, reduce costs and improve overall efficiency.
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