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EaseMyTrip reported a loss of ₹15 crore for the March quarter (Q4FY24). This marks a significant shift from the ₹31 crore profit the company earned in the same period last year. It’s the first quarterly loss for EaseMyTrip in recent history. Prashant Pitti, co-founder, EaseMyTrip, says it is a “one time loss” and pegs it to write-offs of Go First’s dues.
Speaking to businessline, Pitti assured investors that the GoAir write-off was a one-time event. “We have written off over ₹74 crore that Go First owed us,” he said. “We believe the company is going in the right direction.”
- Also read: EaseMyTrip partners with Google Wallet
Despite the financial setback, the company’s revenue grew by a healthy 43 per cent year-on-year to ₹173 crore. However, it’s important to note that ₹40 crore of this revenue came from providing marketing and promotion services.
The primary reason for the loss was a write-off of dues recoverable from Go Airlines. EaseMyTrip assessed the chances of recovering the money as slim due to GoAir’s ongoing dispute resolution process at the National Company Law Tribunal. The write-off amounted to ₹54 crore net of taxes.
Looking at the annual performance, EaseMyTrip’s revenue reached ₹609 crore in FY24, reflecting a 31 per cent increase from FY23. However, profit after tax (PAT) dipped by 23 per cent to ₹103 crore in FY24 compared to ₹134 crore the previous year.
Pitti emphasised the company’s new focus on profitability. “This year we will be focusing a lot more on profitability,” he said. “Our profit after tax has improved dramatically, even though the overall business may not have grown by much.” Pitti further highlighted the company’s positive net cash flow from operations this year, a significant improvement compared to the negative figure reported last year.
While EaseMyTrip’s bottom line reflects a loss, the company’s non-air segments, such as hotel bookings, showed strong growth. The number of hotel night bookings for the quarter grew by 39 per cent, and other bookings like buses and activities saw a 53 per cent increase. This positive trend continued throughout FY24, with hotel and other booking categories experiencing significant growth for the entire year.
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