Yatra Reports Q1 FY25 Results: Corporate Focus Drives Growth Amidst B2C Challenges

India’s leading corporate travel services provider and third-largest online travel company, Yatra Online, announced its financial performance for the Q1 FY2025.

Q1 FY25 Highlights

• Revenue: Yatra reported revenue of ₹1,008 million, a 9% YoY decline primarily attributed to reduced B2C volumes due to optimised discounts in a highly competitive market.
• Corporate Growth: The company continued to expand its corporate clientele, securing 34 new accounts with a billing potential of ₹2,028 million, marking a 77% sequential increase in average billing potential.
• MICE Expansion: Yatra’s newly launched MICE business showed early promise, with a dedicated team driving growth. While contributions were minimal in Q1, positive momentum is anticipated for the current quarter.

Scheme of Amalgamation Announced

On August 12, 2024, Yatra’s Board approved a composite scheme to amalgamate the company with its 6 wholly-owned subsidiaries. This strategic move aims to streamline operations, enhance efficiency, and unlock synergies. The amalgamation is subject to necessary approvals.

Key Benefits of Amalgamation

• Simplified management and corporate structure.
• Improved operational efficiency through resource optimisation.
• Reduced overhead costs and expenses.
• Economies of scale and elimination of redundant functions.
• Rationalised compliance requirements.

Commenting on the results, Whole Time Director and Chief Executive Officer, Mr Dhruv Shringi stated: “For the three months ended June 30, 2024, we reported revenue of ₹1,008 million, representing a decline of 9% year-over-year. The decline was primarily driven by reduced volumes in the B2C segment, as we optimised discounts amid intensifying price competition in the market.

He further added, “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.”

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