Travel aggregator Yatra reports 32.5% decline in profit to Rs 4.04 crore in Q1FY25

Yatra Online Limited, one of India's leading online travel aggregators, has reported a significant decline in its profits for the first quarter of the fiscal year 2025.

The company saw a steep 27.5% drop in profit, primarily driven by reduced volumes in its B2C segment amid intensified market competition.

Decline in revenue

Yatra's revenue from operations fell to Rs 100.8 crore in Q1 FY25, a 6.4% decrease from 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. 

Corporate travel segment shows promise

Despite the struggles in its B2C segment, Yatra's Corporate Travel business exhibited robust growth. The company onboarded 34 new corporate clients during the quarter, with a total billing potential of Rs 202.8 crore.

Dhruv Shringi, Yatra’s CEO, emphasized the strength of their Corporate Travel segment, noting 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 successfully secured 34 new corporate customer accounts. As the leader in Corporate Travel services in India, our customer acquisition rates remain strong, consistently outperforming industry benchmarks. We are currently exploring strategic M&A opportunities to further bolster our Corporate Travel segment, with a promising pipeline of prospects under evaluation," Shringi added.

Profitability hit by operational costs

Yatra’s overall profitability was impacted by rising operational costs, which included significant expenditures on employee benefits, marketing, and technology.

The company's consolidated net profit for Q1 FY25 stood at Rs 4.04 crore, down from Rs 5.99 crore in the previous quarter and representing a 32.5% decline 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 decrease in profit margins.

Strategic Moves and Future Outlook

On 12th August 2024, the Board of Directors of Yatra Online Limited approved a Composite Scheme of Amalgamation involving Yatra Online Limited and its six wholly-owned subsidiaries. 

The move is aimed at streamlining operations, reducing costs, and enhancing overall efficiency.