Yatra Online, Inc.

Thank you for your patience. Today's call will begin in approximately two minutes. Thank you for standing by. Thank you. Hello all and welcome to Yatra Online Inc 1Q Fall Year 24 Earnings Conference Call. My name is Lydia and I'll be your operator today. If you'd like to ask a question during the call, you can do so by pressing star followed by the number one on your telephone keypad. If you change your mind and wish to withdraw your question, it's star followed by two. It's my pleasure to now hand you over to your host, Manish Hemrajani, Head of Investor Relations. Please go ahead.

Thank you, Lydia. Good morning, everyone. Welcome to Yatra's fiscal first quarter 2024 financial report. We have on the call today Yatra CEO and co-founder Dhruv Senge and CFO Rohan Mittal. Following discussion in response to your question, next management views as of today, October 16, 2023, we don't undertake any obligation to update or revise the information. 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 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 are also available on our investor relations site. With that, let me turn the call over to Drew. Drew, please go ahead.

Thank you, Manish. Good morning to all. And I appreciate your presence on our Q1 earnings call for fiscal 24. I'm delighted to announce a significant milestone for Yatra Online Limited. We successfully concluded our Indian IPO of INR 7.75 billion, which is approximately USD 93 million, and proudly made our debut on the Indian stock exchanges on the 28th of September. This achievement holds special significance for all of us at Yatra. The funds generated from the IPO are earmarked for strategic investments, acquisitions in organic growth, technology advancement, bolstering customer acquisition and retention, and other initiatives pivotal to our organic growth and corporate endeavors. Furthermore, Yatra Online Inc. also benefited from an additional capital of approximately USD 21 million as the selling shareholder, THCL, which is a wholly owned subsidy of Yatra Online Inc., sold these many shares in the open market. The capital not only enables us to settle the MAC debt, but also provides us the flexibility to potentially allocate a part of the residual funds for future Yatra share buybacks. The recent IPO in tandem with these developments offers us strategic leverage, enhancing our market visibility, diversifying our shareholder base and consequently strengthening the Yatra brand. The IPO was based on a pre-money valuation of INR 16 billion which is approximately 193 million which equates to again approximately 3.03 dollars per YTRA share that trades on NASDAQ. This is based on a share count of 63.6 million shares outstanding currently. The current market cap of the India entity is approximately 23.15 billion, which is approximately USD 280 million. And post the IPO, Yatra Online Inc. owns about 65% of its Indian subsidiary, which on a consolidated basis, as I mentioned above, equates to an approximate share price of YTRA shares of USD 3.03. Now moving on to the June quarter results. I'm pleased to report that we had our strongest quarter on the air front since the advent of COVID with the highest number of air passengers booked since pre-COVID in December 2019. This was up 41.5% year-over-year, far outpacing the domestic air passenger industry growth of 14.8%. Moreover, our sequential growth has been twice the pace of the industry, faster than our peers, demonstrating our ability to gain share and the inherent strength of the Yatra brand. International travel has also shown a steady improvement during the quarter, reaching approximately 90% of pre-COVID levels. As we move forward, we remain optimistic and committed to leveraging these positive trends to drive further growth and success. We further fortified our leadership in the corporate travel sector by signing 19 new corporate customers in the June quarter. These customers have an annual billing potential of INR 1.5 billion, which is approximately USD 18.2 million. This underlines the capabilities and leadership of our corporate travel SaaS platform. As for the IMF, India's economic growth remains robust, driven by a large public capital expenditure push and the resilient domestic demand. The economy is expected to grow by 6.3% in both 2023 and 2024. As it relates to Yatra, looking at how the travel industry has unfolded over the last several years, we see that travel trends to grow at a multiple of one and a half to two X of GDP. We believe that we should be able to achieve growth rates above market rates as we continue to take share in the corporate travel market and as the consumer market continues to remain robust. Both the expansion of the travel industry and the macro conditions continuing to be favorable allow us to do so. The Indian aviation industry is witnessing unprecedented expansion of its fleet. The fleet is expected to almost double over the next five years, and the aviation ministry is forecasting more than doubling in air passengers to approximately 400 million annual air passengers in the next decade. Regarding inflation, again, India is failing relatively well. CPI-based inflation stood at 5.02% in September, as compared with 6.83% in August, according to data from the Ministry of Statistics. Core inflation fell to 4.6% in September, from 4.8% in August, and this was the lowest since April 2020. Now let me provide you with some more details on our first quarter results. Our revenue for the quarter ended 30th of June, 2023, was reported at INR 1.5. 106 million billion which is approximately usd 13.5 million this was up 23 percent year over year adjusted ebitda for the quarter reached inr 115.4 million which is approximately 1.4 million usd marginally lower versus the june 22 quarter at about 1.5 million usd india's domestic passenger traffic saw sequential growth of three percent in the quarter ended june 30th 2023 compared to this our domestic passenger traffic grew six percent faster than peers reflecting strong market share gains for both our consumer and corporate businesses this positive momentum has carried over into subsequent months as well with the recently concluded september month up 18.3 percent year over year and up seven percent versus pre-covered marking seven consecutive months of above pre-covered levels on the domestic air passenger traffic front. So the market has firmly recovered from the pre-COVID levels. Year to date from January to September 2023, Indian domestic market has registered a growth of 29.1% with 112.8 million passengers flying during this period. International travel has also continued to show resiliency and steady improvement during the quarter. and has now surpassed 90% of its pre-COVID levels. As we move forward, we remain optimistic and committed to leveraging these positive trends to drive further growth and success. Moving on to further details of the quarter, our consumer business gained further traction on the back of strong brand recall that the Yatra.com brand continues to enjoy the market. We launched our Yatra Prime offering during the quarter and the initial signups have been encouraging with positive response to this offering continuing in the subsequent months. During the quarter, we closed 19 new corporate customer accounts. While the number is lower queue on queue, partly due to seasonality, what was encouraging was that the average billing potential of the customers that we closed during this quarter trended higher than in the past. International travel also continues to improve gradually. and we are optimistic in the outlook for a sustained recovery in nearshore international travel. On the hotels front, revenue from our hotels and packages business was INR 452.6 million, which is approximately USD 5.5 million in the three months ended June 20th, 2023, as compared to INR 390.7 million or USD 4.8 million in the three months ended June 30th, 2022, reflecting an increase of almost 16 percent the increase in revenue is on account of recovery in domestic travel along with additions of new distribution partners from a competitive standpoint the intensity has remained stable from last quarter and remains manageable overall from a macro standpoint the indian government remains strongly committed to the growth of airport infrastructure in india an investment of almost 12 billion dollars has been earmarked for the enhancement of 41 existing airports in India. Additionally, under the Greenfield Airport Policy, out of the 21 new airports that were sanctioned, 12 have already come online. So with a positive macro backdrop, and given the ongoing recovery in corporate and leisure travel, and our continued success in signing new large and medium-sized enterprise customers, and now a significantly bolstered balance sheet, we believe we are poised for a strong back half of FY24. 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 brand. Just to reiterate, today Yatra India serves one out of every four of the top 100 listed companies in India. It also services three out of the big four accounting firms and three of the top five technology companies in India. Finally, I would like to express my deepest appreciation of our dedicated employees and the shareholders for their unwavering support. With that, let me hand it over to Rohan to walk you through the details of the financial performance. Rohan, over to you. Thank you, Dhruv.