Yatra Online Inc (YTRA) 2019 Q3 法說會逐字稿

Good day, and welcome to the Yatra Third Quarter 2019 Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Manish Hemrajani. Please go ahead, sir.

Thank you, Rachel. Good morning, everyone. Welcome to Yatra's Fiscal Third Quarter 2019 Earnings Conference Call for the period ended December 31, 2018. On the call with me today are Yatra's CEO and Co-Founder, Dhruv Shringi; and CFO, Alok Vaish.

The following discussion, including responses to your questions, reflects management's views as of today, January 31, 2019. We do not undertake any obligation to update or revise the information. As always, some of the statements made on today's call are forward-looking, specifically preceded by words such as we expect, we believe or similar statements. Please refer to the company's filings with the SEC for information about factors which could cause our actual results to differ materially from these forward-looking statements. Additional information concerning these statements is contained in the Risk Factors section of the company's annual report on Form 20-F filed with the SEC on July 31, 2018. Copies of this and other filings are available from the SEC and on the Investor Relations section of our website.

With that, let me turn the call over to Dhruv. Dhruv, please go ahead.

Thank you, Manish, and good morning, everyone. I'm pleased to report healthy financial results in the fiscal third quarter of 2019. Our multichannel approach once again enabled us to deliver healthy growth with a significant improvement in our adjusted EBITDA loss in the quarter. We continue to make strong progress towards achieving operating breakeven in the near term and have taken some concrete steps towards that, and I'll talk about these later in my remarks.

Starting off, our business channel platform and consumer business continued to deliver robust adjusted revenue growth, while a combination of improved efficiency in our marketing expenses and optimization of our cost base enabled us to achieve a meaningful improvement in the adjusted EBITDA loss. The integration of the ATB acquisition is tracking ahead of plan, with almost 90% of their customers expected to be migrated to the Yatra platform by end of February, resulting in further cost synergies from the next quarter onwards.

Looking ahead, we continue to be confident in our ability to meet our growth objective of at least 20% adjusted revenue growth in the current fiscal year and delivering a meaningful year-over-year improvement in our adjusted EBITDA loss. More importantly, we believe we have the right strategy and continue to believe that our unique strategy of creating a symbiotic relationship between business and leisure travel is a powerful one. It enables us to capture the higher spend and loyalty of business travelers as well as to serve the more cost-conscious and opportunistic leisure travelers. We are optimistic about our prospects, and we believe we are well positioned to further capitalize on India's rapidly expanding travel industry. This multichannel approach helped grow our adjusted revenue by 16.6% year-over-year. Meanwhile, operating efficiency drove cost savings, enabling us to reduce our adjusted EBITDA loss by 60% year-over-year to $2.2 million in the December quarter.

In addition, we've just begun to realize the cost synergies from the integration of ATB, and we expect the full impact of the integration to be reflected in the next several quarters.

Let me now review key operating highlights of the quarter. I'll start with the general microenvironment, then review Air, Hotel, Corporate Travel and some of our other initiatives in marketing and technology. We continue to believe the aviation macro trends will remain favorable over the long term as a result of lower aircraft penetration and government support. Overall, air traffic was up 12% year-over-year in the December quarter. Our own air gross bookings were up 13.4%, with air ticketed passengers up 8% year-over-year.

Let me now elaborate on some of the factors that impacted air gross bookings during the quarter. In the business travel category, we decided to give up some low-margin business in order to improve our profitability. We also disengaged with a few ATB customers where the goods and service tax process did not conform with the recommendations of our tax advisors.

Finally, we lost one large customer account due to a change in their global mandate. Adjusting for these onetime factors, growth in air gross bookings would have been about 250 basis points higher. The impact would be similar on Revenue Less Service Cost. Most importantly, however, is the improved profitability resulting from eliminating the low-margin business.

On the revenue front, Air Ticketing adjusted revenue posted growth of 5.7% due to lower air take rates of 6.2% in the quarter versus 6.7% last year and the effect of the onetime factor that I just mentioned earlier. The change in take rate was mainly a result of higher yields in the current quarter and the change in mix towards international travel. That being said, our take rate improved sequentially by 50 basis points from 5.7% in the September quarter on account of a higher B2C mix.

Part of the decline in air take rate year-over-year was offset by the increase in cross-sell revenue. This is reflected under other income, which grew 109% year-over-year as we continue to enhance attach rates for travel insurance and drive up advertising and ancillary revenue.

Now let's turn to Hotels. We continue to be the leading platform for domestic hotels and home stay options. I'm pleased to report that we now have over 100,000 properties on our platform. Our Hotel and Packages business grew at a rate of 10.5% on an adjusted revenue basis, largely due to net revenue margin improvement of 260 basis points year-over-year to 15.1%, despite gross bookings being down 8% year-over-year, largely on account of lower sales of packages. The lower sales of packages was as a result of us closing down loss-making physical retail sales locations and the transitional effect of our call centers being outsourced to a third-party service provider.

Both of these onetime structural changes will result in a meaningful improvement in our bottom line on an ongoing basis.

Stand-alone hotel room nights booked were up 19.2% year-over-year. We continue to realize the cross-sell benefits in our corporate business, and we expect further progress as we continue to migrate legacy ATB corporate customers onto the Yatra platform.

This past quarter, we also signed a partnership with Agoda, which is a part of the Bookings.com group. We will power their hotel inventory for domestic India hotels. Agoda is one of the largest global accommodation booking platforms, with excellent reach among travelers across the world and in Asia-Pacific in particular, and we're delighted to join forces with them. There is a strong interest from global travelers in visiting India and providing a wide choice of real-time hotel inventory, helps ensure a seamless travel booking experience. We believe this alliance will not only prove beneficial for Agoda's customers but also valuable for our hotel partners by providing them incremental global traveler demand.

Agoda is expected to go live later this quarter, with Yatra inventory onboarded with realtime pricing. We view this as a profitable means to leverage our market-leading hotel inventory and would be open to other similar deals in the future as well.

Let me now talk about our Corporate Travel business. In an emerging markets with limited disposable income, business travel is generally the first form of travel undertaken. As a market leader in this segment, we believe that we are well positioned to capture some of the most attractive target group of travelers in India as they make their first online travel purchase. A further benefit is that corporate travel demand tends to be less price sensitive as well. We believe we are the largest corporate travel service provider in India in terms of gross bookings. We also believe that corporate travel in India is a more exciting and larger opportunity for us. It is projected to grow at an annual rate of over 12% through 2020. This makes India the fastest-growing corporate travel market in the world according to industry research.

Next, let me cover some recent accomplishments in our Corporate segment. First, we continue to strengthen our presence in this segment. For example, earlier this month, we agreed to acquire the corporate travel business of PL Worldways Limited, a Chennai-based corporate travel service provider. This acquisition will help us strengthen our foothold in Southern India by adding over 100 corporate lines to our existing base of over 700 clients. We also recently announced the signing of Axis Bank, India's third largest bank, with over 60,000 employees as a corporate travel customer and we are excited to have them onboard. We have created a customized platform based on Axis Bank's compliance policies and approval systems, thereby ensuring end-to-end fulfillment of their corporate travel needs.

Let's now turn to some other business highlights. As I mentioned earlier, we are pleased with the progress on the ATB integration. About 90% of ATB's customers are expected to integrate to the Yatra platform by February end, enabling us to start realizing cost synergies. Importantly, we believe that there is a large opportunity to cross-sell Yatra's hotel inventory to our now over 800 strong corporate customer base.

Moving on to the Corporate sales book tool, our legacy customer base crossed the 57% mark on sales booking. That's an 85% increase in absolute number of sales booking transactions over the same period last year. Our SME platform also continues to scale up strongly, and we now have almost 16,000 SMEs using our platform for their travel needs.

Mobile traffic continues to garner the largest share of our overall traffic, with 82% of our traffic during the quarter coming from mobile devices. Our organic mobile app downloads are now at about 17 million as we added just under 1 million new installs in the quarter.

On the cost side, while we clearly stand to benefit from cost synergies from the integration of the ATB business, I would also like to share with you some of the steps we are taking to optimize our cost structure. We recently outsourced our call center, which should result in a cost saving of around $2 million in the next 12 months. Additionally, we have further rationalized our personnel expenses, which have declined to about 25.5% of adjusted revenue from 36% of adjusted revenue in the year-ago quarter. Our marketing and sales promotion expenses came in at 48% of adjusted revenue versus 52% in the year-ago quarter as we continue to drive towards profitability.

In closing, with the strength of our brand, our deep distribution network across India and our leadership position in corporate travel, we believe we are well positioned to capitalize on this next wave of growth.

I'm now going to turn the call over to Alok to walk you through the details of our financial performance. Alok?

Thank you, Dhruv, and hello to everyone. As Dhruv mentioned in his opening remarks, we are pleased with the performance during the quarter ended December 31, 2018. Let me provide the key financial highlights, starting with the income statement.

Our adjusted revenue grew by 16.6% year-over-year to INR 2.3 billion or $33.5 million. Gross air passengers booked were 2.5 million; that represents a year-over-year growth of 7.8%. stand-alone hotel room nights booked were 600,000, representing an increase of 19.2% year-over-year.

Adjusted revenue from our Air Ticketing business increased by 5.7% to INR 1.5 billion or $20.8 million in the quarter. This growth was driven by a 13.4% increase in gross bookings to INR 23 billion, or $333 million. Gross bookings growth was offset by a decline in our net revenue margins to 6.2% versus 6.7% in the year-ago quarter due to relatively higher airfares and a change in mix towards international flights. I would also like to highlight that our net revenue margin for Air in the December quarter increased from 5.7% margin in the sequential previous quarter and from 5.2% margin for the 3 months ended June 30, 2018.

For Hotels and Packages, our adjusted revenue for this segment was up 10.5% Y-o-Y to INR 483 million, or $6.9 million in the quarter. This growth was driven largely by a net revenue margin improvement to 15.1% from 12.5% in the last year's corresponding quarter, while gross bookings decreased 8% due to our decision to shut down our physical retail sales locations and outsourcing of customer contact centers in a drive towards profitability.

Our net revenue margin in the December quarter increased from 13.7% margin in the sequential previous quarter and from 12.9% margin for the 3 months ended June 30, 2018. Other revenue, including other income, grew by 109% to INR 400 million, or $5.8 million, from INR 192 million in the same period last year. The decrease in -- this increase in adjusted revenue was primarily due to increase in attach rates for travel insurance, advertisement and ancillary income.

Moving on to expenses. Marketing and sales promotion expenses decreased by 84% to INR 166 million or $2.4 million in the quarter from INR 1 billion or $14.8 billion in the prior year quarter. Adding back the consumer promotions and loyalty program expenses, which were reduced from revenue according to IFRS 15, our marketing spend would have been INR 1.1 billion, or $16.2 million, which is 48.3% of adjusted revenue in the current quarter, down from 51.5

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decreased 17.5% to INR 594 million, or $8.5 million in the December quarter. (inaudible) of $10.4 million on last year's quarter. This decrease was primarily due to a decrease in employee share-based payment expense to INR 33.8 million or $0.5 million in the quarter from INR 132 million or $1.9 million in the prior year's quarter and due to outsourcing of customer contact centers.

Personnel costs as a percent of adjusted revenue declined to 25.5% in the quarter versus 36% in the same period last year.

Other operating expenses increased by 3.7% to INR 798 million or $11.5 million in the quarter from INR 770 million or $11.1 million in the prior year's quarter. The increase is primarily due to increase in payment gateway expenses and call center outsourcing expenses. This was partially offset by decrease in IT communication expense, travel expense and provision for doubtful debts. Based on these factors and operating efficiencies, adjusted EBITDA loss has improved by 60% year-over-year to INR 154 million or $2.2 million in the quarter from INR 388 million or $5.6 million last year in the corresponding quarter.

Turning to liquidity. Our cash position remains strong. As of December 31, 2018. The balance of cash and cash equivalents and term deposits on our balance sheet was INR 3.8 billion or approximately $54.5 million. We have also recently entered into an advertising agreement with the Times of India group, India's leading media business house for our advertising campaigns, which are to be conducted over a period of 5 years. Pursuant to the terms of the deal, we have made advance payments which are to be used for the cost of the advertising campaigns. Under the agreement, some of the advertising costs will be adjusted to the advance extended by us while the rest of the advertising costs will be paid incrementally at the time of the advertisement campaigns.

As a part of the deal, the bank's group has also subscribed to unsecured nonconvertible debentures having a face value of INR 195 million or $2.8 million in our Indian subsidiary. These ancillaries will be redeemed at a value of INR 215 million or $3.1 million at the end of the 5-year maturity, reflecting simple fixed interest of 10% for the entire term of the NCDs.

Let me conclude with the guidance for fiscal '19. As Dhruv noted, we remain positive on the Indian macro environment. We see attractive growth potential in air and hotels industry and believe we are in a very strong leadership position in the corporate travel market. We reiterate our guidance of over 20% growth in adjusted revenue with a meaningful improvement in our adjusted EBITDA loss for fiscal '19 driven by operating leverage and efficiencies.

This concludes our prepared remarks, and we can now open the lines for the Q&A. Back to Rachel.

(Operator Instructions) We'll now take our first question from Jed Kelly of Oppenheimer.

A couple if I may. Hello, hello? Can you hear me?

Yes, we can hear you, Jed.

A couple. It seems that your profitability came in what we were forecasting. Does this kind of give you confidence that you sort of can accelerate your profitability goals into next year and maybe thought you could generate positive EBITDA into 2020? Or positive free cash flow? Just how should we think about profitability going forward over the next 12 to 24 months?

Jed, this is Dhruv. The question of profitability, we clearly changed our focus to a certain extent in ensuring that the improved bottom-line cost (inaudible) a question which was asked by investors, and I think the steps that we've taken should highlight to investors the ability of the business to be able to turn around and quickly get to profitability in the near term. There are some other levers as well that we touched upon, which are around the ATB integration. We think there is some further upside on the back of that. We continue to focus on driving healthy growth as well. So trying to balance both healthy growth and profitability. And we feel there is some upside which is there. To address the other part of our full year profitability of 2020, well, that's an endeavor, I think we're definitely working towards that. We think we should still be -- we might be closer to breakeven or marginal profitability in 2020, and look to enhance on that profitability more in 2021. Our free cash flow profitability might be a bit longer, especially we are looking at 2021 for free cash flow profitability because there's incremental working capital that gets deployed as the Corporate Travel business grows. The cash flow profitability, it might take another few quarters from the time we get to operating breakeven.

Okay. And then you said the corporate travel agents industry in India grew 12% this quarter. Can you kind of -- did you -- did your Corporate Travel segment outgrow the industry?

So the growth of Corporate Travel was not specifically for the quarter. That's the growth rate that which industry reports are projecting the industry to grow between 2017, I think in 2020. So that's the CAGR. In the current quarter, we took some steps as a company to -- and these are more onetime in nature, to restructure parts of our Corporate Travel business as well. And there some ATB customers (inaudible) tax position by the customers who was not conforming to the advice of our tax advisors, and we let go those customers, and since there were some low-margin accounts as well that we let go of, so while on an overall basis, the growth might have been less than 12, if I was to adjust for these onetime factors, then growth rates would be healthy.

Okay, that's helpful. And then marketing and sales promotion, it continues to be your largest expense, although clearly the focus is on corporate travel. I mean, can you talk about the ability to sort of really leverage this expense item over the next 18 months? And how you're thinking about competing in the leisure, travel environment?

Sure. On the marketing and sales promotion side, we've seen it come down (inaudible) to 48%. And we think there should be further opportunities as well as we continue to build on repeat buying patterns and also converting part of our large corporate travel base into leisure travelers on the platform. So a combination of those 2 gives us at least a strong belief that we should be able to see more leverage on the sales and marketing spend over the course of the next 18 months.

Okay. And then on your cash balance, or your net cash balance, I think my math is about around, call it, $38 million. I mean, are there any earnouts from ATB or any other acquisitions? And how do you feel you're capitalized to do further acquisitions in the corporate travel space?

Yes. So I think the number that you're talking of is probably netting of the amount that requires -- is yet to be paid out on the ATB acquisition, which will probably happen sometime in this quarter. We believe it's inadequately capitalized from a cash point of view given the backdrop of reducing losses and some efficiencies in working capital as well. So we believe we are a bit okay there. Whatever acquisitions we might look at would be small tuck-in incremental kind of acquisitions without requiring a huge amount of capital. But I think we're okay now based on the current capital base that we have right now.

But Jed, just adding to that. On the capital side, the ones we continue to look out for is interesting acquisitions. So if there are some which require us to look at other means of capital raising, we would be open to doing that. I think some of these acquisitions -- or the most of the acquisitions do generate positive cash flow. Some flexibility of looking at interesting financing for these acquisitions as well. But as Alok said, all are tuck-in ones, we've got enough on the balance sheet to do it ourselves. If there's something more material, then we'll continue to evaluate other means as well.

We'll now take our next question from Vijit Jain of Citi.

So my question is about the PL Worldways acquisition. Could you give us a sense of what kind of revenue earnings, EBITDA impact you're seeing, or expecting from this acquisition? Will this be accretive from day 1?

Yes, Vijit, this should be accretive from day 1. So while we haven't really (inaudible) the absolute numbers, the way we are looking at some of these acquisitions and this trend, where we're following others, as well, that we do, what we are doing is taking on the business and taking on only a certain amount of support staff necessary. So from day 1, as these businesses come to us with between 35% to 50% kind of operating margin. That's the way we are looking at this. So it should be accretive from day 1.

I see. And how about the Agoda partnership? So that should directly just flow into your EBITDA, right? Because I'm guessing it's a relationship where you just provide them access to your database and they pay you certain fees. Is that a correct assessment?

That's right.

And how big could that be, I guess? If you could give us a sense of how big could that be. Because I think other people, other players in this space have also highlighted international incoming as one of the major growth areas. So I was just getting a -- trying to get a sense of whether you think this could be a material impact on your sort of path to achieving adjusted EBITDA breakeven?

This will definitely be positive on the bottom line from day 1, as you rightly highlighted, from an operating model point of view. There is very little marginal cost that we incur on this. So whatever contribution, net contributions we retain, all flows through to the bottom line. In terms of the volume of business, while we've had some dialogue with Agoda around this, we would want to wait for a quarter or 2 to see what kind of trends are acting on this before we start putting out some number guidance to this. But needless to say, Agoda is one of the largest players in the Southeast Asian market, for sure. So we do expect very healthy volume to come from there. But as I said, we'll just wait and watch for a quarter or 2 before we start releasing more numbers around that.

And I have just one last final question. So you mentioned you've added Axis Bank as one of your corporate clients this quarter. Could you give us a sense of how many large accounts do you have in your corporate space right now? I know -- maybe as a percentage of your overall corporate client book or maybe as a percentage of your revenues? For large accounts, that is.

Sure. Okay. What we quantify is about 800 large corporate customers. Now all of these might not fall in the same bucket, but the definition that we have is, on the SME side, we've got SMEs who spend less than $10 million -- sorry, INR 10 million a year. So below that categorization is SME. Above that, we start qualifying them for large. But on average, a large customer of ours will spend about $1.5 million a year on business travel.

I see. And how many of those will you have right now?

So as of today, we have about 800.

Right. So 800 of them, which pay $1.5 million a year? Or which do business of $1.5 million a year, is that right?

No. So the 800 would not average $1.5 million. I'm just being a bit circumspect right now because if I give you an average, then you just you can backtrack into the volume of corporate sales, which is something that is not put out at the moment. But nice try, Vijit.

(Operator Instructions) We will now take our next question from Jon Hickman of Ladenburg.

Could you talk to me about the outsourcing of your call center? Since you're -- they're not in your direct control, is there any kind of risk there that those people aren't going to do what you exactly what you want them to do? Or they're not going to be as well trained as you had previously, when you had complete control?

Sure, Jon, and that's a very good question, Jon. And that's been a primary concern of ours over the years. And that's the reason why we haven't done this sooner although the cost opportunity has been there for a while in terms of cost savings. But what has given us the confidence to do this, this time around is the fact that we've been able to build out a certain number of online automation tools and call center automation tools during the course of the last 12, 18 months. And (inaudible) has helped us streamline the processes, standardize them to a pretty meaningful extent, and that (inaudible) confidence to outsource. And obviously, there's a lot of tight monitoring happening around this. There are tight SLAs that we have in place with the vendors. So a combination of technology, plus tight SLAs with -- and monitoring of the vendors now gives us the confidence. But it's largely on the back of the automation that we've been able to do and streamlining the workflows that's now given us the confidence to go out and outsource.

And do you think that's going to save you $2 million over the course of this year?

That's right. That's right. So just in terms of absolute headcount cost, that should save us $2 million.

Okay. Then the other thing is, could you go over again, I know you said this a couple of times, but I just want to make sure I understand. So you consciously got rid of some low, I guess, high-cost, low-profitability customers on your -- in your Corporate Travel side, and then you eliminated some others because of their -- you didn't like their accounting? And then you also got rid of your physical stores, and that caused a decline in what otherwise would have been a stronger growth quarter. Do I have that right?

Right, Jon, yes.

Okay. Can you elaborate on what didn't you like about, like, I don't think I've ever heard of somebody dropping a customer because they didn't like their accounting, but can you elaborate on that?

No, Jon, it wasn't really -- sure. It's not the accounting, but it's the tax position. So in India, just to give you a bit of background, there was a new goods and services tax which was introduced in July of 2017. And there was certain grayness around that tax and how companies need to account for and transact between each other. So it's talking more about the agency and principal relationship between customers and the airlines. So it's around that where the tax position taken by these companies was not in compliance with the tax position which was recommended to us by our auditors and by our tax consultants. So if we were to adopt the tax position which these companies were adopting, we would have had to create an incremental charge in our P&L for the differential arising on account of these 2 tax treatments. So it was on account of that, that we decided not to pursue these businesses because we, obviously, don't want to carry that tax liability and also, you don't want to risk running afoul with the government. So we worked with some of the big 4 tax advisors in India, and we decided to take a more conservative approach, which has been outlined by them, from a tax compliance point of view.

Okay. And then the thought around giving up your physical locations, why did you do that?

The physical location actually has been something that we've been evaluating now for the last couple of years. More and more customers are researching online. And there is very limited walk-in now happening from a -- even a holiday purchase point of view. So what actually happens now is customers research online and then they do a large part of the fulfillment also online. But things like document collection, foreign exchange, visa for those people (inaudible) how to do stuff like that, you don't really need to be in high stores -- high street stores. You can service those document requirements from a back office as well. And we've got, in different parts of our business, we've got some back-office locations in pretty much most of the metro cities and some of the tier 2 towns in India. So we thought there was a way for us to just move from a high street retail location and save the cost and combine our workforce into the back-office location, or at least a part of the workforce. What we did end up losing was the little bit of sales which used to happen in these high street locations. There were still some sales which was happening, but this legacy sale was not enough to cover the cost structure now of the high street locations. So that was the reason for taking that call. We've lost a bit of holiday package sales which used to happen from these locations. But we're fairly confident that, that can be picked up in a matter of a quarter or so from the online channels themselves.

We will now take our next question from Gaurav Rateria from Morgan Stanley.

Dhruv, congrats on a good execution on profitability. Firstly, a question on the domestic air aviation market. You talked about the overall growth in the sector at around 12%. As a company, you would have maintained your share, you would have gained share in the domestic air market. Any sense on that will be great.

In terms of our consumer direct business, we would have been gained overall market. On an overall basis, this time around, I don't think we've got any market share gain in this quarter on the back of those onetime things that we just outlined. But if you were to ignore the effects of the onetimers, then obviously, there is market share gain which has happened both in our consumer business and on a lasting basis in the other parts of our business.

Okay. And what's your sense on this overall trend going forward. Do you think this volume growth could remain subdued for some time at least in the first half of 2019, given the volatility in the market because of what's happening with the airlines?

We've looked at the volume trends right now, and we think an industry growth rate in the early teens should be sustainable. It might not be the 20% number that we were witnessing in the early part of 2018 calendar year, but we do expect growth to still be in the teens, on the basis of new capacity expansion, new route expansion that the airlines are undertaking. It's also being aided by the fact that fuel prices have come off from the high at which they were in the months of September and October. So that's giving the airlines a bit of flexibility from a pricing standpoint as well.

Right. What's your sense on, like, the yields? Are they moving up? And is that impacting the volumes? Or is there something else?

The yield is definitely moving up. We've seen yields move up in this quarter as well compared to the previous quarter. So there is definitely some upward movement of the yield. And on the back of that upward movement in the yield, we've seen some volume come off, but that volume is now being more than made up by the increase in the gross booking value because of the higher yield.

Okay. One question on the domestic stand-alone hotel room nights. The growth was a little slower this quarter. If you'd be able to provide some color, the slowdown was led by which particular segment? The mid segment, the budget segment or the high segment? Any color on that would be very helpful.

Yes. So on that side as well, Gauarav, it got impacted by one corporate customer where, on account of low-margin business, we decided to give up on that corporate customer. So the decline or the relative slowdown is coming on the back of that. Had it not been there, then the impact would have been about, I think I'm just trying to do a rough math right now, about 200 to 200 -- yes, about 200 basis points higher. But from an overall industry point of view, we don't see a meaningful slow down out here. I think next quarter onwards, it should pretty much be back on track, the 25% to 30% number that we were looking at earlier.

Okay. And any color, like, the 25%, 30% is driven majority by the budget segment, the high segment? Like, where have you been gaining more traction in -- if you were to divide it into 2 or 3 broad segments of high and mid end in the budget?

Our growth is coming from the budget and the -- sorry, the mid and the high end and more limited from the budget. The budget segment is the one where price couponing and competition continues to be intense. And given that we are driving cross-sell from our Corporate Travel base, the Corporate (inaudible) is more skewed to the mid segment and the high end.

Fair enough. Last question for me, Dhruv, this, on the budget segment, you guys had done a tie-up with the aggregators like OYO. Any color on how that partnership has been panning out? And has it been net-net accretive to your overall growth? Or how have you been looking at that?

The impact of that on the ledger side has been marginal. I don't think it's really had a very significant impact, because the supply does tend to be a certain -- to be fungible to a certain extent. And the net incremental of that is still fairly limited for us. So I'm not seeing in that category a tremendous amount of lift coming on the back of having one particular operator on the platform.

(Operator Instructions) As we have no further questions at this time, I would like to hand the conference back to our hosts for any additional or closing remarks.

I think we're good then.

Yes. Thank you, guys, for joining the call today.

Sure. Thank you, everyone.

This concludes today's call. Thank you for your participation. You may now disconnect.