Le Travenues Technology (IXIGO) Q1 24/25 earnings summary

Executive summary

• Achieved all-time highs in Gross Transaction Value (GTV), revenue from operations, contribution margin, and adjusted EBITDA in Q1 FY25, reflecting strong growth and profitability momentum year-over-year.

• GTV reached ₹29,881.49 million, up 27% YoY, with both trains and flights growing 28% YoY and buses up 16% YoY, despite a high base and election-related travel impact.

• Over 94% of transactions involved tier-2, 3, and 4 towns, reinforcing focus on the next billion user segment and deep reach in Tier II/III cities.

• Monthly transacting users grew 22% YoY to 2.78 million; monthly GTV hit a record ₹1,000 crore in June 2024; monthly active users reached 79.74 million in Q1 FY25.

• IPO completed in June 2024, raising ₹1,200 million (fresh issue), with net proceeds of ₹1,111.08 million unutilized and temporarily invested in fixed deposits as of June 30, 2024.

Financial highlights

• Revenue from operations grew 16% YoY to ₹1,818.78 million; gross ticketing revenue rose 18.2% YoY to ₹218.3 crore.

• Contribution margin grew 22.4% YoY to ₹868.32 million (47.7% of revenue); margin percentage rose from 45% to 48% YoY.

• Adjusted EBITDA increased 48% YoY to ₹202.99 million; PAT rose 78% YoY to ₹148.56 million; basic EPS at ₹0.39 (not annualized).

• EBITDA margin improved to 10.42% in Q1 FY25 from 7.47% in Q1 FY24.

• Average transaction value per passenger segment improved by 9%.

Outlook and guidance

• Management aims to balance growth and profitability, continuing investments in technology, AI, customer experience, and brand initiatives.

• Willing to trade off some margin for faster growth in flights, buses, and hotels, with a focus on expanding market share and bringing more offline bookers online.

• Industry growth expected to normalize after post-COVID rebound; supply-side constraints in domestic aviation may ease in H2 FY25.

• Expects sector tailwinds from government infrastructure initiatives and rising discretionary spending in India.