Yatra Online, Inc.

Thank you for your patience, ladies and gentlemen. The YACHT online physical second quarter financial results will begin shortly. During the presentation, you have the opportunity to ask a question by pressing star four by one on a telephone keypad. Thank you for your patience. Ladies and gentlemen, welcome to the Yatra Fiscal Second Quarter Financial Results Conference call. My name is Glen and I'm the moderator for today's call. If you would like to ask a question during the presentation, you may do so by pressing star 1 on the telephone keypad. I will now hand you over to host Manish to begin. Manish, please go ahead.

Thank you, Glen. Good morning, everyone. Welcome to Yatra Fiscal Second Quarter 2023 Financial Results. So the period ended September 30th, 2022. I'm pleased to be joined on the call today by Yatra CEO and co-founder Dhruv Sringi and our new CFO, Rohan Mittal. The following discussion, including responses to your questions, reflects management views as of today, November 29, 2022. We don't undertake any obligation to update or revise the information. Before we begin our formal remarks, allow me to 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 file earlier this morning. Copies of this and other filings are available from the SEC and also on the IR section of our website. With that, let me turn the call over to Drew. Drew, please go ahead.

Thank you, Manish. Good morning, everyone, and thank you for joining us today for our second quarter earnings call of fiscal 23. Before we discuss our results for the quarter, let me just quickly update you on the draft red herring prospectus, the BRHP, which was filed by our Indian subsidiary, Astra Online Limited, on March 25, 2022. The Securities and Exchange Board of India, which is SEBI, issued the final observation letter dated November 17, 2022, which means Yatra India's proposed IPO can open for subscription now within a period of 12 months from the date the final observation letter was issued. I just want to clarify that this doesn't mean that it will open after 12 months. This means that it can open at any point within a 12-month window from the date of the issuance of the letter. You'll recall that the Yatra India subsidiary had proposed an IPO of its equity shares comprised of a fresh issue of primary sale of up to INR 7,500 million and an offer for sale of up to 9.3 million equity shares in a secondary offering. We expect to commence marketing activities shortly and currently anticipate that we can complete this offering in the first quarter of calendar year 2023. Aside from strengthening our balance sheet, we expect this offering to allow us to pursue new corporate business more aggressively and to explore alliances with partners who might not have been comfortable with an overseas structure. Let me also welcome our new CFO Rohan Mittal to the servings call. Rohan brings over 20 years of experience to Yatra, most recently serving as CFO for Revivo and prior to that having spent time with other listed companies in India, especially in the logistics space. We are very excited to have Rohan be a part of our team and look forward to his input. Now on to our fiscal Q2 results. I am pleased to report that we delivered strong sequential growth of 21% in adjusted value in what is typically our seasonally weakest quarter. We were able to achieve this growth due to higher take rates in our air ticketing business, which more than offset a 10% Q1Q decline in traffic and lower average ticket prices. Reflecting these dynamics, revenue of INR 831 million, which is approximately USD 10.2 million, was up 85% year-over-year, and adjusted revenue of INR 1.52 billion, which is USD 18.6 million approximately, increased 92% from the previous year. Adjusted EBITDA for the quarter of INR 77.7 million, approximately a million US dollars, was up 234% year-over-year. Our adjusted EBITDA was adversely impacted by higher legal costs of INR 24 million incurred in connection with the expansion of the Yatra board with the addition of Mr. Kaufman, the debt facility that we took subsequent year-end, and IPO-related legal costs. After rebounding strongly in Q1, overall domestic air travel industry volumes contracted by 10%, largely on account of Yatra's overall airfax volume declined only 2%, which was substantially lower than the overall industry, resulting in market share gains for us. This gain was aided by a very successful online travel shopping festival that we launched around our 16th anniversary in August. Our brand strength and recall continues to remain high, and we believe this will enable us to continue to grow meaningfully faster than the industry. especially as both B2C and corporate consumers continue to migrate online at a very rapid pace. Our consumer business remains strong as airlines share special payers to counter the seasonally low quarter that we typically see in September quarter. Domestic travel ended the quarter at approximately 100% of pre-COVID levels. We also saw continued strength in new corporate customer signings with 30 new signings. which exceeded the previous record of 27 large and medium-sized enterprises that we had achieved in the previous quarter. International travel also continues to improve gradually, exiting the quarter at approximately 70% of pre-COVID levels, with the lifting of all travel restrictions in Asia Pacific region, barring operational shutdowns in China. International travel has lagged to global recovery in Asia Pacific specifically, but we are optimistic that in the current scenario, we see sustained growth and recovery happening in international travel going into calendar year 2023. On the hotel front, our adjusted revenue was up 47% year over year, as we saw the benefits of incremental contribution from the Flipkart partnership, and we continue to pursue other such opportunities, which should be accreted to us in the near to mid-term. From a competitive standpoint, the intensity has remained stable from our last quarter, and remains overall manageable. We are currently in one of our seasonally strongest quarters, which benefits from both the Diwali holidays in late October and Christmas at year-end, and we are seeing further signs that consumers continue to have the propensity to spend on leisure travel. In October, domestic air passenger traffic reached 11.4 million passengers, representing an increase of 10% month over month, and a breakout from the 10 to 11 million average passenger traffic range that we've seen in the preceding seven months. From a macro standpoint, the IMF currently expects India's GDP to grow at about 6.8% in our fiscal 2023. As we have mentioned previously, the travel industry has historically grown at approximately 2x of GDP in developing markets versus a 1.5x multiple in developed markets. We continue to believe that we should be able to achieve growth above market rates given by share gains in the corporate travel market and the ongoing secular shift from offline to online in the consumer market. Given the ongoing recovery in corporate and leisure travel, our continued success in finding new large and medium enterprise customers and our upcoming Indian IPO, we believe we are well poised for a strong half of fiscal 23. Aside from sales vanity, We expect our results to benefit from accelerating growth in our corporate business as we continue to line new customers. Additionally, a successful Indian IPO should also leave us well positioned to pursue higher take rates in the air business and to accelerate growth in freight. Even as we invest for growth, we also continue to make strides in improving our operational efficiency. We are already starting to see significantly higher levels of profitability as a result of these efforts. I want to express my gratitude to our employees and shareholders for their continued support. With that, let me hand it over to Rohan to walk you through the details of the financial performance. Rohan? Thank you, Dhruv.