© Reuters
NEW DELHI – Yatra Online, the India-based travel services company, has reported a significant rise in air passenger bookings and revenues for the third quarter, alongside announcing a new share buyback plan. The company’s latest financial results revealed a 31.2% year-over-year increase in air passenger numbers, which boosted its quarterly revenue to INR 947.6 million (USD $11.4 million), marking a 14% rise from the same period last year.
Despite the revenue growth, Yatra Online experienced a decrease in adjusted margins from air ticketing, which fell to USD $12.3 million due to lower ticket prices that dropped by approximately 14.7%. Consequently, adjusted EBITDA also declined to USD $0.4 million from the previous year’s USD $0.9 million.
In response to these mixed results, Yatra Online’s stock value climbed to $1.55 on the NASDAQ:YTRA following the announcement of its third-quarter performance. The company’s surge in air passenger bookings outpaced the industry growth rate of 22.7%, signaling strong demand for its services.
Adding to the positive sentiment, Yatra Online disclosed a $5 million share repurchase plan, reflecting its strong future outlook and commitment to returning value to shareholders. This strategic move is aligned with efforts to expand its Indian investor base following the successful IPO of its subsidiary on the NSE & BSE on September 27, which raised INR ₹7750M dedicated to funding growth strategies.
The company’s decision to buy back shares also coincides with initiatives to increase visibility in the market by growing an analyst pool that can provide more consolidated company coverage. This is seen as a step towards enhancing Yatra Online’s market presence and attracting further investment interest.
InvestingPro Insights
Leveraging real-time data from InvestingPro, we can delve deeper into Yatra Online’s financial landscape. The company’s market cap stands at a solid 6850M USD, with a P/E ratio of 20.3, indicating a reasonable valuation relative to its earnings. Over the last twelve months as of Q3 2023, Yatra Online has seen an impressive revenue growth of 53.09%, further validating the company’s strong performance highlighted in the article.
Turning our attention to InvestingPro Tips, two significant insights stand out. Firstly, Yatra Online has been experiencing accelerating revenue growth, a fact that aligns with the company’s reported increase in air passenger bookings. Secondly, the company is trading at a low P/E ratio relative to its near-term earnings growth, suggesting potential undervaluation in the market.
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