Yatra Online Inc (YTRA) 2024 Q2 法說會逐字稿

Hello, everyone, and welcome to today's call with the Yatra fiscal second quarter 2024 earnings call. My name is Alan, and I'll be the call operator for today. (Operator instructions)

大家好，歡迎參加今天的 Yatra 2024 財年第二季財報電話會議。我叫艾倫，我將擔任今天的接線生。 （操作員說明）

I would now like to turn the call over to Manish Hemrajani, Vice President of Corporate Development and IR. to begin. Please go ahead whenever you are ready.

我現在想將電話轉給企業發展和投資者關係副總裁 Manish Hemrajani。開始。只要你準備好了，就請繼續。

Thank you, Alan, good morning, everyone. Welcome to Yatra's fiscal second quarter 2024 financial results for the period ended September 30, 2023. I'm pleased to be joined on the call today by Yatra CEO and Co-Founder, Dhruv Shringi; and Group CFO, Rohan Mittal. The following discussion including responses to your questions reflects management's views as of today, November 17, 2023. We don't undertake any obligation to update or revise the information.

謝謝艾倫，大家早安。歡迎閱讀 Yatra 截至 2023 年 9 月 30 日的 2024 年第二季財務業績。和集團財務長羅漢·米塔爾。以下討論（包括對您的問題的答案）反映了截至今天（2023 年 11 月 17 日）管理層的觀點。

Before we begin our formal remarks, let me remind you that certain statements made on today's call may constitute forward-looking statements, which are based on management's current expectations and beliefs and are subject to several risks and uncertainties that could cause actual results to differ materially. For a description of these risks, please refer to our filings with the SEC and our press release filed earlier this morning. These filings are available from the SEC and also on the Investor Relations section of our website.

在我們開始正式發言之前，請允許我提醒您，今天電話會議中所做的某些陳述可能構成前瞻性陳述，這些陳述基於管理層當前的預期和信念，並受到多種風險和不確定性的影響，可能導致實際結果有重大差異。有關這些風險的描述，請參閱我們向 SEC 提交的文件以及今天早上早些時候提交的新聞稿。這些文件可從 SEC 獲取，也可在我們網站的投資者關係部分取得。

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

接下來，讓我將電話轉給 Dhruv。德魯夫，請繼續。

Thank you, Manish, and good morning, everyone. Thank you for joining us for our second quarter earnings call. It is my pleasure to share that for the third consecutive quarter, we have expanded our market share in the travel sector. In the second quarter of 2024, our air passenger bookings surged by 31.2% year-over-year, far outpacing the industry's growth rate of 22.7%. This not only underscores the Yatra brand resilience, but also highlights our competitive edge in capturing market share.

謝謝你，曼尼什，大家早安。感謝您參加我們的第二季財報電話會議。我很高興與大家分享，我們連續第三個季度擴大了在旅遊領域的市場份額。 2024年第二季度，我們的航空旅客預訂量年增31.2%，遠超業界22.7%的成長速度。這不僅凸顯了 Yatra 品牌的韌性，也凸顯了我們在佔領市場佔有率方面的競爭優勢。

International travel has also shown a steady improvement during the quarter ended September 30, 2023, reaching approximately 90% of the pre-COVID levels. As we move forward, we remain optimistic and committed to leveraging these positive trends to drive further growth and success.

截至 2023 年 9 月 30 日的季度，國際旅行也呈現穩定改善，達到新冠疫情爆發前水準的約 90%。在我們前進的過程中，我們保持樂觀並致力於利用這些積極趨勢來推動進一步的成長和成功。

In the corporate travel sector, we further strengthened our position by securing 30 new corporate accounts in the quarter. These accounts carry a potential annual billing of about INR813 million, which is roughly USD10 million, reflecting our platform's capability and leadership in the market.

在商務旅行領域，我們在本季新增了 30 位企業客戶，進一步鞏固了我們的地位。這些帳戶的潛在年帳單約為 8.13 億印度盧比（約 1,000 萬美元），反映了我們平台的能力和市場領導地位。

Beyond the quarter, we have continued our momentum in closing deals with significant clients like Wells Fargo and a major multinational corporation, wherein we will manage their travel needs across various regions in Africa, in Asia, further expanding our influence and operational footprint.

本季之後，我們繼續保持與富國銀行和一家大型跨國公司等重要客戶達成交易的勢頭，我們將管理他們在非洲、亞洲各個地區的旅行需求，進一步擴大我們的影響力和營運足跡。

Additionally, as some of you may have seen in our press release this morning. I would also like to share that the Board has authorized a share repurchase of up to USD5 billion of our Nasdaq-listed YTRA shares, underscoring our confidence in Yatra's future and our steadyfast commitment to delivering shareholder value. This authorization represents approximately 5% of Yatra online Inc's market capitalization based on the current share price.

此外，正如你們中的一些人可能已經在我們今天早上的新聞稿中看到的那樣。我還想告訴大家的是，董事會已授權回購最多 50 億美元的納斯達克上市 YTRA 股票，突顯了我們對 Yatra 未來的信心以及我們對實現股東價值的堅定承諾。根據目前股價，此次授權約佔 Yatra online Inc 市值的 5%。

Now let me provide some more color on the macro picture. According to the International Monetary Fund, global inflation is projected to gradually decrease from 8.7% in 2022 to 6.9% in 2023 and further to 5.8% in 2024. This trend is attributed to the implementation of tighter monetary policies and the stabilization of international commodity prices.

現在讓我為宏觀圖片提供更多顏色。國際貨幣基金組織預計，全球通膨率預計將從2022年的8.7%逐步下降至2023年的6.9%，並進一步下降至2024年的5.8%。商品價格的穩定。

Amid this backdrop of softening inflation, India's economic landscape remains particularly robust, buoyed by a significant public capital expenditure initiative and a strong domestic economy. The Indian economy is poised for consistent growth, with projections estimating 6.3% increase over 2023 and 2024. This positive trajectory underscores the resilience and dynamic nature of our economy.

在通膨疲軟的背景下，在重大公共資本支出計畫和強勁的國內經濟的推動下，印度的經濟格局仍然特別強勁。印度經濟預計將持續成長，預計 2023 年和 2024 年將成長 6.3%。

Travel does tend to be closely linked to the growth in GDP and over the past decade, we have seen travel growing anywhere between 1.5x to 2x of GDP growth. India's per capita GDP has also witnessed an extraordinary growth trajectory. Increasing GDP per capita has required four decades from 1960 to 2000 to achieve a five-fold increase. But the same five-fold increase has been achieved in just the last two decades.

旅行確實往往與 GDP 成長密切相關，在過去十年中，我們發現旅行成長速度為 GDP 成長的 1.5 倍到 2 倍。印度的人均GDP也出現了非凡的成長軌跡。從1960年到2000年，人均GDP花了4年才達到了5倍的成長。但僅在過去二十年就實現了同樣五倍的成長。

This is growing at a compounded annual growth rate of 25%. This surge in per capita income is a key driver for heightened discretionary trends for travel and dining out emerging as the primary beneficiaries. Amidst the landscape of an escalating rise in discretionary income, we are confident in our potential to surpass market growth rates. Our strategy to capture a greater share in the corporate travel market, coupled with the sustained strength of our consumer brands positions us well for continued expansion and success.

這一數字正以 25% 的複合年增長率增長。人均收入的激增是旅行和外出用餐成為主要受益者的可自由支配趨勢增強的關鍵驅動力。在可自由支配收入不斷增長的背景下，我們對超越市場成長率的潛力充滿信心。我們在商務旅行市場佔據更大份額的策略，加上我們消費品牌的持續實力，使我們能夠持續擴張並取得成功。

Now let me provide you with some more details on our second quarter. Our revenue for the quarter ended September 30, 2023, was reported at INR947.6 million, approximately USD11.4 million, up 14% year-over-year. Adjusted margins from air ticketing of USD12.3 million were down by 4.8% year over year, largely on account of almost 15% decline in air ticket prices year-over-year.

現在讓我向您提供有關第二季度的更多詳細資訊。截至 2023 年 9 月 30 日的季度營收為 9.476 億印度盧比，約合 1,140 萬美元，年增 14%。調整後的機票利潤為 1,230 萬美元，年減 4.8%，主要是因為機票價格年減近 15%。

Adjusted EBITDA for the quarter for these INR35 million, approximately USD400,000. This is lower versus the September 2022 quarter at INR77.7 million or approximately USD 900,000. We incurred IPO related listing fees during the quarter of INR68.2 million or USD0.8 million, which are one-time in nature.

本季調整後的 EBITDA 為 3,500 萬印度盧比，約 40 萬美元。這低於 2022 年 9 月季度的 7,770 萬印度盧比（約 90 萬美元）。我們在本季產生了 IPO 相關上市費用 6,820 萬印度盧比（80 萬美元），這些費用本質上是一次性的。

Moving on to further details of the quarter. The corporate segment was somewhat impacted in the September quarter with softness in travel spend in the IT and ITES sectors. We are confident, however, of the recovery in the near term from our largest contributing sector. We expect that the new business that we have won is likely to offset the drop that we have seen on account of the softness in the IT/ITES segment by the first quarter of calendar year 2024.

繼續了解本季的更多細節。由於 IT 和 ITES 行業的差旅支出疲軟，企業部門在 9 月季度受到了一定影響。然而，我們對近期最大貢獻產業的復甦充滿信心。我們預計，到 2024 年第一季度，我們贏得的新業務可能會抵消由於 IT/ITES 領域疲軟而造成的下降。

On the hotel front, revenue from our hotel and packages business was INR366 million, which is approximately USD4.4 million in the three months ended September 30, 2023, as compared to INR267 million or USD3.2 million in the three months ended September 30, 2022, this reflects a 37% increase year over year. The increase in revenue is attributable to recovery in domestic travel, along with the addition of new distribution partners and the focus on selling better quality hotels in that business travellers.

飯店方面，我們的飯店和套餐業務收入為3.66億印度盧比，截至2023年9月30日止三個月約為440萬美元，而截至9月30日止三個月為2.67億印度盧比或320萬美元到 2022 年，年增 37%。收入的增長歸因於國內旅遊的復甦、新的分銷合作夥伴的增加以及專注於向商務旅行者銷售更高品質的酒店。

From a competitive standpoint, the intensity has remained stable from the last quarter and remains manageable overall. With the positive macro backdrop and given the ongoing recovery in corporate and leisure travel and the rising discretionary spend and now a significantly bolstered balance sheet, we believe we are poised for a strong FY24 and FY25.

從競爭角度來看，強度較上季保持穩定，整體可控。在積極的宏觀背景下，考慮到商務和休閒旅行的持續復甦以及可自由支配支出的增加以及目前資產負債表的顯著增強，我們相信我們將為2024 財年和25 財年的強勁表現做好準備。

Aside from seasonality, we expect our results to benefit from accelerating growth in both our corporate business and consumer business as we continue to add to our formidable blue-chip customer base and leverage the strength of our guidance. Just to reiterate, today Yatra India sells one out of every four of the top 100 listed companies in India, three out of the big four accounting firms and three of the top five technology companies in India.

除了季節性因素外，隨著我們繼續擴大我們強大的藍籌客戶群並利用我們的指導力量，我們預計我們的業績將受益於我們的企業業務和消費者業務的加速成長。重申一下，如今，Yatra India 出售了印度前 100 家上市公司中四分之一的股份、四大會計師事務所中的三家以及印度前五名科技公司中的三家。

In addition, as part of the IPO, we have also earmarked INR1.5 billion, USD19 million approximately towards M&A and are evaluating opportunities in the B2B space that allow us to expand our product platform for our business travel customers. Given our stronger balance sheet following the IPO, we've already begun to see early signs of improving supplier margins in the current quarter and expect this to gain further momentum in the quarters ahead and have a meaningful positive impact on our operating performance going forward.

此外，作為 IPO 的一部分，我們還指定了 15 億印度盧比（約 1,900 萬美元）用於併購，並正在評估 B2B 領域的機會，以便我們能夠為商務旅行客戶擴展我們的產品平台。鑑於我們在首次公開募股後的資產負債表更加強勁，我們已經開始看到本季度供應商利潤率改善的早期跡象，並預計這將在未來幾個季度獲得進一步的動力，並對我們未來的經營業績產生有意義的正面影響。

In addition, we have also seen the positive impact from the IPO and a stronger balance sheet in one of our large corporate customer contract discussions, which has had a favorable outcome for Yatra, and we expect to see more of these in the quarter to come. With these positive tailwinds, we expect our operating performance to continue to improve quarter on quarter in the near term.

此外，我們還在一次大型企業客戶合約討論中看到了 IPO 和更強勁的資產負債表的積極影響，這對 Yatra 產生了有利的結果，我們預計在未來的季度會看到更多這樣的影響。憑藉這些正面的推動力，我們預期短期內我們的經營業績將繼續逐季改善。

With that, let me hand it over to Rohan, to walk you through the details of the financial performance. Rohan?

接下來，讓我將其交給 Rohan，帶您了解財務表現的詳細資訊。羅漢？

Thank you. I will now review our Q2 numbers for the quarter ended September 30, 2023. Our gross booking for quarter two was INR17.5 billion, which is roughly USD211 million, which was up by 10% on a Y-o-Y basis. Our two main segments, air and hotels and packages both grew by 12% on a Y-o-Y basis during this period.

謝謝。現在，我將回顧截至 2023 年 9 月 30 日的第二季數據。在此期間，我們的兩個主要細分市場——航空、酒店和套餐——同比增長了 12%。

For this quarter, our revenue grew by 14%, INR948 million, which is about USD11.4 million on account of sustained elevated travel demand. Our adjusted margin from the air ticket business reduced by 5% Y-o-Y to INR1 billion due to limited access to airline deals in quarter two.

本季度，由於旅行需求持續成長，我們的收入成長了 14%，達到 9.48 億印度盧比，約 1,140 萬美元。由於第二季獲得航空公司優惠的機會有限，我們調整後的機票業務利潤率年減 5% 至 10 億印度盧比。

The adjusted margin from hotels and packages business increased by 16% Y-o-Y, to INR278 million, which is about USD3.3 million. The increase is on account of recovery in the domestic travel, along with addition of new distribution partners. Adjusted margin from other services increased by 21% on a Y-o-Y basis to INR50 million. This increase in adjusted margin is due to the increase in revenue from our other B2C services.

飯店和套餐業務調整後利潤率年增16%，達到2.78億印度盧比，約330萬美元。這一增長是由於國內旅行的復甦以及新的分銷合作夥伴的增加。其他服務的調整後利潤率年增 21%，達到 5,000 萬印度盧比。調整後利潤率的增加是由於我們其他 B2C 服務的收入增加。

The total adjusted margin for all the three segments put together remained flattish. Our other revenue increased by 43% on a Y-o-Y basis to INR144 million, primarily on account of increase in advertisement revenue.

所有三個部門的總調整利潤率仍然持平。我們的其他收入年增 43%，達到 1.44 億印度盧比，主要是因為廣告收入的增加。

Moving to the expenses, our quarter two marketing and sales promotion expenses, including the consumer promotion, loyalty program costs, increased by 4% on a Y-o-Y basis to INR832 million, which is about $10 million. This marketing increase led the overall gross booking growth of 10%, which is a positive sign. Our personnel expenses, excluding the share-based payment expenses increased by 11% Y-o-Y to INR279 million, which is roughly USD3.4 million, primarily on account of the annual appraisal cycle.

說到費用，我們第二季的行銷和銷售促銷費用，包括消費者促銷、忠誠度計畫成本，年增 4%，達到 8.32 億印度盧比，約 1,000 萬美元。此次行銷成長帶動整體總預訂量成長 10%，這是一個正面的訊號。我們的人員費用（不包括股份支付費用）年增 11%，達到 2.79 億印度盧比，約 340 萬美元，主要是由於年度評估週期。

Payment gateway costs as a percentage of the total gross bookings remain range-bound. Other expenses, excluding payment gateway, reduced by 16% on a Y-o-Y basis. in quarter two, we have completed the cost accounting of IPO expenses and taken a one-time charge of INR68 million, which is a little below $1 million. Adjusted EBITDA profit stands at INR35 million as compared to INR78 million in the quarter ended September 2022.

支付網關成本佔總預訂量的百分比仍在一定範圍內。其他費用（不包括支付網關）較去年同期減少 16%。第二季度，我們完成了IPO費用的成本核算，一次性費用為6800萬印度盧比，略低於100萬美元。調整後 EBITDA 利潤為 3,500 萬印度盧比，而截至 2022 年 9 月的季度為 7,800 萬印度盧比。

Lastly, as of September 30, the balance of cash and cash equivalents and term deposits on our balance sheet was INR7.1 billion, which was roughly USD86.4 million. This reflects the proceeds from our recently completed IPO, while our gross debt was INR1.74 billion.

最後，截至 9 月 30 日，我們資產負債表上的現金和現金等價物以及定期存款餘額為 71 億印度盧比，約 8,640 萬美元。這反映了我們最近完成的 IPO 的收益，而我們的總債務為 17.4 億印度盧比。

With this, we come to the closure of our prepared remarks, I'd like to hand it back to the moderator for opening the question and answers. Thank you.

至此，我們準備好的發言就結束了，我想將其交還給主持人以開始問題和答案。謝謝。

Thank you. (Operator instructions)

謝謝。 （操作員說明）

Scott Buck, H.C. Wainwright.

巴克 (Scott Buck)，H.C.溫賴特。

Hi, good morning, everyone. Thank you for taking my questions. Can you give us a little bit more color on what's driving the softening in air ticket prices? And it sounds like that's kind of dragged a little bit here through and fiscal third quarter as well, Correct?

嗨，大家早安。感謝您回答我的問題。您能為我們提供更多關於導致機票價格疲軟的原因嗎？聽起來這在第三財季也被拖了一點，對嗎？

Hi, Scott. Good morning. Yeah, you're right, that air ticket prices have softened significantly, especially on the international travel front. Here, we've seen a lot more deployment of capacity. So last year, as we were coming out of COVID, capacity was really limited in terms of airlines deploying aircraft on the India route, we've seen a significant expansion of that playing out during the last 12 months. And that incremental supply is what's resulting in prices rationalizing and coming closer and closer towards where they were in the pre-COVID environment.

嗨，斯科特。早安.是的，你是對的，機票價格已經大幅下跌，尤其是在國際旅行方面。在這裡，我們看到了更多的容量部署。去年，當我們擺脫新冠疫情影響時，航空公司在印度航線上部署飛機的運力確實有限，但我們看到在過去 12 個月裡運力顯著擴張。增量供應導致價格合理化，越來越接近新冠疫情前的水平。

On the domestic front as well, we've seen supply expansion play out, in fact even going forward, it's expected that over the next six months, Air India will add more than an aircraft a week. So we will continue to see more capacity expansion happening.

在國內方面，我們也看到供應擴張正在發揮作用，事實上，即使是未來，預計在未來六個月內，印度航空將每週增加超過一架飛機。因此，我們將繼續看到更多產能擴張的發生。

The good thing about that is that while on the one hand, it does depress air ticket prices, it does stimulate demand. So if you look at from an overall perspective, the industry grew almost 23% Year over year, we grew 31%. So from a volume growth perspective, this is actually a great sign that prices are rationalizing.

這樣做的好處是，一方面它確實壓低了機票價格，但也確實刺激了需求。因此，如果從整體角度來看，該行業同比增長了近 23%，而我們則增長了 31%。因此，從銷售成長的角度來看，這實際上是價格合理化的一個很好的跡象。

Going forward, we expect prices to remain range bound because the vast majority of the incremental capacity that had to be deployed on the international routes is already in place. And from here on, it's going to be a more gradual expansion of capacity as opposed to the large-scale expansion in supply that we saw over the last 12 months.

展望未來，我們預計價格將保持區間波動，因為必須部署在國際航線上的絕大多數增量運力已經就位。從現在開始，產能擴張將更加漸進，而不是我們在過去 12 個月看到的大規模供應擴張。

Great. That's really helpful color. And then I wanted to dig in a little bit on the M&A strategy. Are you looking to do one large deal, multiple small deals? Can you give us just a little bit more color on that and what does the timing look like there?

偉大的。這真是有用的顏色。然後我想深入探討併購策略。您想做一筆大交易，還是多筆小交易？您能給我們更多資訊嗎？

Sure. So as we've called it out in our own IPO prospectus as well in India, our endeavor would be to look at opportunities which allow us to expand the products and services that we can cross-sell into our corporate customer base. These could be anything ranging from multiple other products and services related to travel or other ancillary travel and zero technology related offerings that organizations use.

當然。因此，正如我們在印度的 IPO 招股說明書中所指出的那樣，我們將努力尋找機會，擴大我們可以向企業客戶群交叉銷售的產品和服務。這些可以是與旅行或其他輔助旅行相關的多種其他產品和服務以及組織使用的零技術相關產品的任何內容。

So from that perspective, it could be either, right? So it could be, one, which has a meaningful size and scale or it could be technologies and products that could dovetail into our offering. The latter would be the more likely route that we will adopt, right. But I can't rule out the former either. The strategy would be to look at, you know, things which can fit into our platform and then help scale up the revenue from those incremental services within our existing corporate customer base.

所以從這個角度來看，兩者都可能是，對嗎？因此，它可能是具有有意義的規模和規模的產品，也可能是可以與我們的產品相契合的技術和產品。後者是我們更有可能採取的路線，對吧。但我也不能排除前者。你知道，我們的策略是尋找適合我們平台的東西，然後幫助擴大我們現有企業客戶群中這些增量服務的收入。

Great. I appreciate that. And then last one for me, just on OpEx, I'm curious, given some of the growth projections over the next 12 months or so, how do you feel or are you comfortable with the current cost basis or do you have to do a fair amount of hiring or additional investment in OpEx, to support that growth.

偉大的。我很感激。最後一個是關於營運支出的，我很好奇，考慮到未來 12 個月左右的一些成長預測，您對當前的成本基礎有何感覺或是否滿意，或者您是否必須做一個大量招聘或對營運支出進行額外投資，以支持這種增長。

See on the OpEx side, we've pretty much got all the main ingredients in place. There might be a little bit of incremental investment that comes in on the technology side, but it's going to be fairly marginal in the overall scheme of things. So we don't expect our cost structure to change significantly, especially to look at this as a percentage of total transaction value, we don't see that changing much.

在營運支出方面，我們幾乎已經準備好了所有主要成分。技術方面可能會有一些增量投資，但在整體計劃中這將是相當微不足道的。因此，我們預計我們的成本結構不會發生重大變化，特別是考慮到其佔總交易價值的百分比，我們認為變化不會太大。

Great. Appreciate the time, guys. Thank you again.

偉大的。珍惜時間，夥計們。再次感謝你。

Sure, thank you. Thanks Scott.

當然，謝謝。謝謝斯科特。

Thank you. As a reminder, if you'd like to ask a question, please press star followed by one on your telephone keypad. Now. We'll pause for just a moment to compel any remaining questions.

謝謝。提醒一下，如果您想提問，請按電話鍵盤上的星號，然後再按一個。現在。我們將暫停片刻，以提出任何剩餘的問題。

Okay. Currently, no further questions on the line. So I'd like to hand back the management teams for any closing remarks.

好的。目前，線路上沒有進一步的問題。因此，我想請管理團隊做總結發言。

Thank you, Alan, and thank you, everyone, for joining the call today. As always, we are available for follow-ups, please feel free to reach out to us and wish you all a happy Thanksgiving.

謝謝艾倫，也謝謝大家今天加入電話會議。一如既往，我們隨時跟進，請隨時與我們聯繫，祝大家感恩節快樂。

That concludes the conference call. Everybody. Thank you very much for joining. You may now disconnect your line.

電話會議到此結束。大家。非常感謝您的加入。現在您可以斷開線路。