EX-99.1 2 ex99-1.htm

 

Exhibit 99.1

 

YATRA ONLINE, INC. ANNOUNCES RESULTS FOR

THE THREE MONTHS ENDED SEPTEMBER 30, 2022

 

Gurugram, India and New York November 29, 2022— Yatra Online, Inc. (NASDAQ: YTRA) (the “Company”), India’s leading corporate travel services provider and one of India’s leading online travel companies, today announced its unaudited financial and operating results for the three months ended September 30, 2022.

 

“We delivered strong sequential growth of 21% in Adjusted Revenue in what is typically our weakest quarter due to seasonality, as a result of growth in both our corporate and consumer travel businesses. Our Revenue and Adjusted Revenue for the quarter came in at INR 831.4 million (USD 10.2 million), and INR 1,515.9 million (USD 18.6 million), respectively. Adjusted Revenue was a post-COVID high up 92.2% YoY, as recovery in the travel industry continued across both consumer and corporate travel sectors. Adjusted EBITDA for the quarter came in at INR 77.7 million (~ USD 1 million). India’s domestic passenger traffic in September 2022 reached 90% of pre-COVID levels and business travel gross bookings for Yatra reached 100% of pre-Covid levels in the quarter ended September 30, 2022. International travel also continued to improve gradually during the quarter ended September 30, 2022 following the easing of international travel restrictions, reaching 70% of pre-covid levels. Corporate travel trends are highly encouraging and this was reflected in yet another record customer signings in the September quarter with 30 large to medium enterprise contracts signed during the quarter, which exceeded last quarter’s 27 signings.

 

As you may recall, our Indian subsidiary, Yatra Online Limited (“Yatra India”), filed a Draft Red Herring Prospectus (‘DRHP’) on March 25, 2022, with the Securities and Exchange Board of India (“SEBI”), which is the main stock market regulatory body in India for a potential initial public offering and listing of its equity shares (“Equity Shares”) on the Indian stock exchanges (the “Indian IPO”). We are pleased to announce that SEBI issued the final observation letter dated November 17, 2022, which means Yatra India’s proposed initial public offering can open for subscription within 12 months. We expect to commence marketing activities shortly. Aside from strengthening our balance sheet, we expect this offering to allow us to pursue new corporate business more aggressively.” - Dhruv Shringi, Co-founder and CEO.

 

Financial and operating highlights for the three months ended September 30, 2022:

 

● Revenue of INR 831.4 million (USD 10.2 million), representing an increase of 84.6% year-over-year basis (“YoY”).
● Adjusted Revenue(1) of INR 1,515.9 million (USD 18.6 million), representing an increase of 92.2% YoY.
● Adjusted Revenue(1) from Air Ticketing of INR 1,069.7 million (USD 13.1 million), representing an increase of 110.3% YoY.
● Adjusted Revenue(1) from Hotels and Packages of INR 240.7 million (USD 3.0  million), representing an increase of 47.2% YoY.
● Total Gross Bookings (Air Ticketing, Hotels and Packages and Other Services)(3) of INR 15,893.6 million (USD 195.3 million), representing an increase of 88.4% YoY.
● Loss for the period was INR 71.2 million (USD 0.9 million) versus a loss of INR 140.2 million (USD 1.7 million) for the three months ended September 30, 2021, reflecting a decrease of loss of INR 69.0 million (USD 0.8 million) YoY.
● Result from operations were a loss of INR 5.8 million (USD 0.1 million) versus a loss of INR 140.0 million (USD 1.7 million) for the three months ended September 30, 2021.
● Adjusted EBITDA(2) was INR 77.7 million (~USD 1.0 million) reflecting an increase of 233.8% YOY.

 

 

 

 

   Three months ended September 30,     
   2021   2022   2022   YoY Change 
   Unaudited   Unaudited   Unaudited     
(In thousands except percentages)  INR   INR   USD   % 
Financial Summary as per IFRS                    
Revenue   450,459    831,378    10,217    84.6%
Results from operations   (140,022)   (5,761)   (71)   95.9%
Loss for the period   (140,197)   (71,221)   (875)   49.2%
Financial Summary as per non-IFRS measures                    
Adjusted Revenue (1)   788,710    1,515,882    18,630    92.2%
Air Ticketing   508,616    1,069,744    13,147    110.3%
Hotels and Packages   163,492    240,708    2,958    47.2%
Other Services   38,962    41,053    505    5.4%
Others (Including Other Income)   77,640    164,377    2,020    111.7%
Adjusted EBITDA (2)   23,286    77,717    955    233.8%
Operating Metrics                    
Gross Bookings (3)   8,436,702    15,893,648    195,326    88.4%
Air Ticketing   6,624,473    13,200,796    162,232    99.3%
Hotels and Packages   988,658    1,947,481    23,934    97.0%
Other Services (4)   823,571    745,371    9,160    (9.5)%
Net Revenue Margin% (5)                    
Air Ticketing   7.7%   8.1%          
Hotels and Packages   16.5%   12.4%          
Other Services   4.7%   5.5%          
Quantitative details (6)                    
Air Passengers Booked   896    1,266         41.2%
Stand-alone Hotel Room Nights Booked   289    412         42.6%
Packages Passengers Travelled   1    5         224.3%

 

Note:

 

(1)Adjusted Revenue represents Revenue and other income after deducting service costs and adding back expenses related to consumer promotions and loyalty program costs that have been reduced from Revenue. See section “Certain Non-IFRS Measures.”
(2)See the section below titled “Certain Non-IFRS Measures.”
(3)Gross Bookings represent the total amount paid by our customers for travel services, freight services and products booked through us, including taxes, fees and other charges, and are net of cancellation and refunds.
(4)Other Services primarily consists of freight business, bus, rail and cab and others services.
(5)Net Revenue Margin is defined as Adjusted Revenue as a percentage of Gross Bookings.
(6)Quantitative details are considered on a gross basis.

 

As of September 30, 2022, 62,882,529 ordinary shares (on an as-converted basis), par value $0.0001 per share, of the Company (the “Ordinary Shares”) were issued and outstanding.

 

Convenience Translation

 

The interim unaudited condensed consolidated financial statements are stated in INR. However, solely for the convenience of readers, the unaudited interim condensed consolidated statement of profit or loss and other comprehensive loss for the three and six months ended September 30, 2022, the unaudited interim condensed consolidated statement of financial position as of September 30, 2022, the unaudited interim condensed consolidated statement of changes in equity for the six months ended September 30, 2022, the unaudited interim condensed consolidated statement of cash flows for the six months ended September 30, 2022 and discussion of the results of the three months ended September 30, 2022 compared with three months ended September 30, 2021, were converted into U.S. dollars at the exchange rate of 81.37 INR per USD, which is based on the noon buying rate as at September 30, 2022, in The City of New York for cable transfers of Indian rupees as certified for customs purposes by the Federal Reserve Bank of New York. This arithmetic conversion should not be construed as representation that the amounts expressed in INR may be converted into USD at that or any other exchange rate as well as that such numbers are in compliance as per the requirements of the International Financial Reporting Standards (“IFRS”).

 

 

 

 

Initial Public Offering of Yatra Online Limited

 

Yatra India is contemplating an initial public offering of its Equity Shares in India and filed a draft red herring prospectus on March 24, 2022 with the SEBI. The Equity Shares will not be interchangeable with the Ordinary Shares. The Ordinary Shares will continue to trade on the Nasdaq Capital Market and, after the contemplated listing, the Equity Shares are expected to trade on the Indian stock exchanges. Yatra India received a final observation letter dated November 17, 2022 from the SEBI in connection with the DRHP. The proposed Indian IPO can open for subscription within 12 months. The timing and completion of the Indian IPO is subject to various risks and uncertainties.

 

COVID-19 Pandemic

 

The Indian travel industry continues see to strong recover in both the corporate and consumer sectors, with both sectors now back at or above 90% of pre-COVID levels. The extent of the effects of the COVID-19 pandemic on our business, results of operations, cash flows and growth prospects remain uncertain and are dependent on future developments. These include, but are not limited to, the severity, extent and duration of the pandemic, its impact on the travel industries and consumer spending, rates of vaccination and the effectiveness of vaccinations against various mutations or variants of the COVID-19 pandemic.

 

We continue to remain nimble in implementing certain measures and policies in light of the COVID-19 pandemic. For example, we have largely automated our re-scheduling and cancellation of bookings and provided customers greater flexibility to defer or cancel their travel plans. In addition, we had also undertaken certain cost reduction initiatives, including implementing salary reductions and freezes and work from home policies, renegotiating fixed costs such as rent, deferring non-critical capital expenditures, reducing marketing expenses and renegotiating supplier payments and contracts, which are being rolled back gradually as the we move towards achieving pre-Covid levels of business, however, we expect to continue to adapt our policies and cost reduction initiatives as the situation evolves.

 

Results of Three Months Ended September 30, 2022

 

Revenue. We generated Revenue of INR 831.4 million (USD 10.2 million) in the three months ended September 30, 2022, an increase of 84.6% compared with INR 450.5 million (USD 5.5 million) in three months ended September 30, 2021. The increase in revenue was primarily due to the strong recovery in domestic travel demand as a result of the diminishing impact of the COVID-19 pandemic in India in the quarter ended September 30, 2022 as compared to the quarter ended September 30, 2021.

 

Service cost. Our Service cost increased to INR 94.1 million (USD 1.2 million) in the three months ended September 30, 2022, compared to Service cost of INR 23.4 million (USD 0.3 million) in the three months ended September 30, 2021, primarily due to the strong recovery in domestic travel demand as a result of the diminishing impact of the COVID-19 pandemic in India in the quarter ended September 30, 2022, as compared to the quarter ended September 30, 2021.

 

Adjusted Revenue.(1) Our Adjusted Revenue increased by 92.2% to INR 1,515.9 million (USD 18.6 million) in the three months ended September 30, 2022, from INR 788.7 million (USD 9.7 million) in the three months ended September 30, 2021. In the three months ended September 30, 2022, Adjusted Revenue includes the add-back of expenses in the nature of consumer promotion and certain loyalty program costs reduced from Revenue of INR 715.2 million (USD 8.8 million) compared to an add-back of INR 315.1 million (USD 3.9 million) in the three months ended September 30, 2021. These expenses have been added back to calculate Adjusted Revenue, with the accompanying increase in marketing and sales promotions expenses, to more accurately reflect the way we view our ongoing business. Under IFRS 15, these expenses are required to be reduced from Revenue, an IFRS measure. The increase in Adjusted Revenue resulted mainly from an increase of 110.3% in our Adjusted Revenue from Air Ticketing along with an increase of 47.2% in our Adjusted Revenue from Hotels and Packages, an increase of 5.4% in Other Services and an increase of 111.7% in Others (Including Other Income), which primarily consists of advertisement income, facilitation fees and write back of liabilities no longer required to be paid.

 

 

 

 

The following table reconciles our Revenue (an IFRS measure) to Adjusted Revenue (a non-IFRS measure), for further details, see section below titled “Certain Non-IFRS Measures.”

 

Reconciliation of Revenue (an IFRS measure) to Adjusted Revenue (a non-IFRS measure)

 

   Air Ticketing   Hotels and Packages   Other Services   Others   Total 
   Three months ended September 30, 
Amount in INR thousands (Unaudited)  2021   2022   2021   2022   2021   2022   2021   2022   2021   2022 
Revenue   284,949    428,595    98,985    267,281    35,399    34,599    31,126    100,903    450,459    831,378 
Add: Customer promotional expenses   223,667    641,149    87,912    67,575    3,563    6,454    -         315,142    715,178 
Service cost   -    -    (23,405)   (94,148)             -    -    (23,405)   (94,148)
Other income   -    -    -    -              -    -    46,514    63,474 
Adjusted Revenue   508,616    1,069,744    163,492    240,708    38,962    41,053    31,126    100,903    788,710    1,515,882 

 

Air Ticketing. Revenue from our Air Ticketing business was INR 428.6 million (USD 5.3 million) in the three months ended September 30, 2022 as compared to INR 284.9 million (USD 3.5 million) in the three months ended September 30, 2021, reflecting an increase of 50.4%.

 

Adjusted Revenue (1) from our Air Ticketing business increased to INR 1,069.7 million (USD 13.1 million) in the three months ended September 30, 2022, as compared to INR 508.6 million (USD 6.3 million) in the three months ended September 30, 2021. In the three months ended September 30, 2022 , Adjusted Revenue (1) for Air Ticketing includes the add-back of INR 641.1 million (USD 7.9 million) of consumer promotion and loyalty program costs, which reduced Revenue as per IFRS 15, against an add-back of INR 223.7 million (USD 2.7 million) in the three months ended September 30, 2021. The increase in Revenue and Adjusted Revenue was primarily due to the strong recovery in domestic travel demand as a result of the diminishing impact of the COVID-19 pandemic in India in the quarter ended September 30, 2022 as compared to the quarter ended September 30, 2021.

 

Hotels and Packages. Revenue from our Hotels and Packages business was INR 267.3 million (USD 3.3 million) in the three months ended September 30, 2022 , as compared to INR 99.0 million (USD 1.2 million) in the three months ended September 30, 2021 , reflecting an increase of 170.0%.

 

Adjusted Revenue (1) for this segment increased by 47.2% to INR 240.7 million (USD 3.0 million) in the three months ended September 30, 2022 from INR 163.5 million (USD 2.0 million) in the three months ended September 30, 2021. In the three months ended September 30, 2022, Adjusted Revenue (1) for Hotels and Packages includes the add-back of customer promotional expenses, which had been reduced from Revenue as per IFRS 15 of INR 67.6 million (USD 0.8 million) against an add-back of INR 87.9 million (USD 1.1 million) in the three months ended September 30, 2021. These increases are due to increases in the number of hotel-room nights booked and increase in sales of holiday packages as a result of the diminishing impact of the COVID-19 pandemic in India in the quarter ended September 30, 2022 as compared to the quarter ended September 30, 2021.

 

 

 

(1) See the section titled “Certain Non-IFRS Measures.”

 

 

 

 

Other Services. Our Revenue from Other Services was INR 34.6 million (USD 0.4 million) in the three months ended September 30, 2022, a decrease from INR 35.4 million (USD 0.4 million) in the three months ended September 30, 2021.

 

Adjusted Revenue for this segment increased by 5.4% to INR 41.1 million (USD 0.5 million) in the three months ended September 30, 2022, from INR 39.0 million (USD 0.5 million) in the three months ended September 30, 2021. In the three months ended September 30, 2022, Adjusted Revenue includes the add-back of consumer promotion expenses, which had been reduced from Revenue of INR 6.5 million (USD 0.1 million) against an add-back of INR 3.6 million (USD 0.1 million) in the three months ended September 30, 2021 pursuant to IFRS 15. This increase in Adjusted Revenue is primarily due to an increase in revenue from our freight business.

 

Other Revenue. Our Other Revenue was INR 100.9 million (USD 1.2 million) in the three months ended September 30, 2022, an increase from INR 31.1 million (USD 0.4 million) in the three months ended September 30, 2021 due to increase in advertising revenue.

 

Other Income. Our Other Income increased to INR 63.5 million (USD 0.8 million) in the three months ended September 30, 2022 from INR 46.5 million (USD 0.6 million) in the three months ended September 30, 2021 due to increase in write back of liabilities no longer required to be paid.

 

Personnel Expenses. Our personnel expenses decreased by 2.8% to INR 287.6 million (USD 3.5 million) in the three months ended September 30, 2022 from INR 295.7 million (USD 3.6 million) in the three months ended September 30, 2021. Excluding employee share-based compensation costs of INR 36.5 million (USD 0.4 million) in the three months ended September 30, 2022, compared to INR 79.2 million (USD 1.0 million) in the three months ended September 30, 2021, personnel expenses increased by 16.0% in the three months ended September 30, 2022 due to the impact of the reinstatement of salaries for employees to pre-pandemic levels and annual salary increase.

 

Marketing and Sales Promotion Expenses. Marketing and Sales Promotion Expenses increased by 179.9% to INR 81.3 million (USD 1.0 million) in the three months ended September 30, 2022 from INR 29.0 million (USD 0.4 million) in the three months ended September 30, 2021. Adding back the expenses for consumer promotions and loyalty program costs, which have been deducted from Revenue per IFRS 15, our marketing spend would have been INR 796.5 million (USD 9.8 million) in the three months ended September 30, 2022 against INR 344.2 million (USD 4.2 million) in the three months ended September 30, 2021, increased by 131.4% on a YoY.

 

Other Operating Expenses. Other operating expenses increased by 90.8% to INR 390.7 million (USD 4.8 million) in the three months ended September 30, 2022 from INR 204.7 million (USD 2.5 million) in the three months ended September 30, 2021 primarily due to increase in commission, communication, legal and professional charges, payment gateway charges, bad debts written off and provision for doubtful debts.

 

Adjusted EBITDA(1). Due to the foregoing factors, Adjusted EBITDA profit(1) increased to INR 77.7 million (USD 1.0 million) in the three months ended September 30, 2022 from an Adjusted EBITDA profit(1) of INR 23.3 million (USD 0.3 million) in the three months ended September 30, 2021.

 

Depreciation and Amortization. Our depreciation and amortization expenses decreased by 44.2% to INR 46.9 million (USD 0.6 million) in the three months ended September 30, 2022 from INR 84.1 million (USD 1.0 million) in the three months ended September 30, 2021 primarily as a result of a reduction in assets as compared to the three months ended September 30, 2021.

 

Results from Operations. As a result of the foregoing factors, our Results from Operations were a loss of INR 5.8 million (USD 0.1 million) in the three months ended September 30, 2022. Our loss for the three months ended September 30, 2021 was INR 140.0 million (USD 1.7 million). Excluding the employee share-based compensation costs, Adjusted Results from Operations(1) would have been a profit of INR 30.8 million (USD 0.4 million) for three months ended September 30, 2022 as compared to a loss of INR 60.8 million (USD 0.7 million) for three months ended September 30, 2021.

 

 

 

(1) See the section titled “Certain Non-IFRS Measures.”

 

 

 

 

Share of Loss of Joint Venture. Loss for the three months ended September 30, 2022 amounting to INR Nil compared to loss of INR 1.2 million (USD 0.1 million) in the three months ended September 30, 2021.

 

Finance Income. Our finance income decreased to INR 9.5 million (USD 0.1 million) in the three months ended September 30, 2022 from INR 13.2 million (USD 0.2 million) in the three months ended September 30, 2021. This was primarily due to a decrease in the interest income earned from our bank deposits.

 

Finance Costs. Our finance costs of INR 60.0 million (USD 0.7 million) in the three months ended September 30, 2022 which includes interest on the lease liability of INR 9.1 million (USD 0.1 million) increased by INR 37.5 million (USD 0.5 million) from finance cost of INR 22.5 million (USD 0.3 million) in the three months ended September 30, 2021, which includes interest on the lease liability of INR 10.8 million (USD 0.1 million). The increase was due to account of an increase in the borrowings.

 

Listing and related expenses. Listing and related expenses relate to the expenses incurred in connection with the Indian IPO. During the three month ended September 30, 2022, the Company has incurred INR 72.8 million (USD 0.1 million) out of which INR 6.3 million (USD 0.1 million) is charged to the profit and loss.

 

Change in fair value of warrants. On December 16, 2021, at 5:00 p.m., New York time, outstanding warrants to purchase an aggregate of 17,337,500 Ordinary Shares (the “Warrants”) expired by their original terms. The change in the fair market value of warrants resulted in a gain of INR Nil during the three months ended September 30, 2022 as compared to a gain of INR 12.9 million (USD 0.2 million) in the three months ended September 30, 2021.

 

Income Tax Expense. As a result of the foregoing factors, our income tax expense during the three months ended September 30, 2022 was INR 8.7 million (USD 0.1 million) compared to INR 2.6 million (USD 0.01 million) during the three months ended September 30, 2021.

 

Loss for the Period. As a result of the foregoing factors, our Loss in the three months ended September 30, 2022 was INR 71.2 million (USD 0.9 million) as compared to a loss of INR 140.2 million (USD 1.7 million) in the three months ended September 30, 2021. Excluding the employee share based compensation costs, listing and related expenses and net change in fair value of warrants, the Adjusted loss(1) would have been INR 28.4 million (USD 0.3 million) for the three months ended September 30, 2022 and an Adjusted loss(1) of INR 73.8 million (USD 0.9 million) for the three months ended September 30, 2021.

 

Basic Loss per Share. Basic Loss per Share was INR 1.14 (USD 0.01) in the three months ended September 30, 2022 as compared to Basic Loss per share of INR 2.23 (USD 0.03) in the three months ended September 30, 2021. After excluding the employee share-based compensation costs, listing and related expenses and net change in fair value of warrants Adjusted Basic profit per Share(1) would have been INR 0.46 (USD 0.01) in the three months ended September 30, 2022, as compared to an Adjusted Basic Loss per Share INR 1.18 (USD 0.02) in the three months ended September 30, 2021.

 

Diluted Loss per Share. Diluted Loss per Share was INR 1.14 (USD 0.01) in the three months ended September 30, 2022 as compared to Diluted Loss per share of INR 2.23 (USD 0.03) in the three months ended September 30, 2021. After excluding the employee share-based compensation costs, listing and related expenses and net change in fair value of warrants, Adjusted Diluted Profit per Share(1) would have been INR 0.46 (USD 0.01) in the three months ended September 30, 2022 as compared to an Adjusted Diluted Loss per Share INR 1.18 (USD 0.02) in the three months ended September 30, 2021.

 

Liquidity. As of September 30, 2022 , the balance of cash and cash equivalents and term deposits on our balance sheet was INR 703.1 million (USD 8.6 million). The decrease in cash balance from the March 31, 2022 is primarily on account of increase in working capital deployment due to the recovery of the corporate travel business. During the current quarter, we have drawn a working capital revolver facility of INR 550 million (USD 7.0 million) from Axis Bank and the facility of INR 150 million (USD 1.8 million) against an issuance of 1,500 Nos. of Non-Convertible Debenture (“NCD”) at face value of INR 100,000 each. We expect this facility to grow as business travel recovers. Subsequent to quarter end we have issued a promissory note for an aggregate principal amount of USD10 million with a simple interest rate of 11% per annum (the “Note”). The Note was issued in a private offering to MAK Capital Fund, LP, an affiliate of our shareholder and Michael Kaufman, a member of our Board of Directors, pursuant to a Note Purchase Agreement, dated October 5, 2022 (the “Purchase Agreement”).

 

 

 

 

Conference Call

 

The Company will host a conference call to discuss its unaudited results for the three months ended September 30, 2022 beginning at 8:30 AM Eastern Daylight Time (or 7:00 PM India Standard Time) on November 29, 2022. Dial in details for the conference call is as follows: US/International dial-in number: +1-646-664-1960. Confirmation Code: 898296 (Callers should dial in 5-10 minutes prior to the start time and provide the operator with the Confirmation Code). The conference call will also be available via webcast at https://events.q4inc.com/earnings/YTRA/2022.

 

Certain Non-IFRS Measures

 

As certain parts of our Revenue are recognized on a “net” basis and other parts of our Revenue are recognized on a “gross” basis, we evaluate our financial performance based on Adjusted Revenue, which is a non-IFRS measure.

 

We believe that Adjusted Revenue provides investors with useful supplemental information about the financial performance of our business and more accurately reflects the value addition of the travel services that we provide to our customers. The presentation of this non-IFRS information is not meant to be considered in isolation or as a substitute for our unaudited condensed consolidated financial results prepared in accordance with IFRS as issued by the International Accounting Standards Board (“IASB”). Our Adjusted Revenue may not be comparable to similarly titled measures reported by other companies due to potential differences in the method of calculation.

 

In addition to referring to Adjusted Revenue, we also refer to Adjusted EBITDA profit/(Loss), Adjusted Results from Operations, Adjusted Profit/(Loss) for the Period and Adjusted Basic and Adjusted Diluted Earnings/(Loss) Per Share which are also non-IFRS measures. For our internal management reporting, budgeting and decision making purposes, including comparing our operating results to that of our competitors, these non-IFRS financial measures exclude employee share-based compensation cost, impairment of loan to joint venture, listing and related expenses and change in fair value of warrants. Our non-IFRS financial measures reflect adjustments based on the following:

 

●Employee share-based compensation cost - The compensation cost to be recorded is dependent on varying available valuation methodologies and subjective assumptions that companies can use while valuing these expenses especially when adopting IFRS 2 “Share-based Payment”. Thus, the management believes that providing non-IFRS financial measures that exclude such expenses allows investors to make additional comparisons between our operating results and those of other companies.

 

●Change in fair value of warrants - Consequent to consummation of the business combination, the Company assumed 34.67 million warrants having a right to subscribe for 17.33 million Ordinary Shares and the warrants issued to Macquarie Corporate Holdings PTY Limited. The accounting guidance requires that we record any change in the fair value of these warrants in consolidated statement of profit or loss and other comprehensive loss. We have excluded the effect of the implied fair value changes in calculating our non-IFRS financial measures.

 

On December 16, 2021, at 5:00 p.m., New York time, outstanding warrants (the “Warrants”) to purchase an aggregate of 17,337,500 of our ordinary shares expired by their original terms.

 

 

 

(1) See the section titled “Certain Non-IFRS Measures.”

 

 

 

 

●Impairment of loan to joint venture - The impairment cost to be recorded is dependent on varying available valuation methodologies and subjective assumptions that companies can use while valuing the fair value of the assets on the balance sheet date. Thus, the management believes that providing non-IFRS financial measures that exclude such expenses allows investors to make additional comparisons between our operating results and those of other companies.

 

●Listing and related expenses - These primarily reflect the non-recurring expenses incurred on the IPO process of Yatra India.

 

We evaluate the performance of our business after excluding the impact of the above measures and believe it is useful to understand the effects of these items on our results from operations, Profit for the period and Basic and Diluted Earnings/(Loss) Per Share. The presentation of these non-IFRS measures is not meant to be considered in isolation or as a substitute for our unaudited condensed consolidated financial results prepared in accordance with IFRS as issued by the IASB. These non-IFRS measures may not be comparable to similarly titled measures reported by other companies due to potential differences in the method of calculation.

 

A limitation of using Adjusted EBITDA profit /(Loss), Adjusted Results from Operations, Adjusted Profit/(Loss) for the period and Adjusted Basic and Adjusted Diluted Earnings/(Loss) Per Share as against using measures in accordance with IFRS as issued by the IASB are that these non-IFRS financial measures exclude share-based compensation cost, impairment of goodwill, change in fair value of warrants and depreciation and amortization in case of Adjusted EBITDA profit /(Loss). Management compensates for this limitation by providing specific information on the IFRS amounts excluded from Adjusted EBITDA profit /(Loss), Adjusted Results from Operations, Adjusted Profit/(Loss) for the Period and Adjusted Basic and Adjusted Diluted Earnings/(Loss) Per Share.

 

The following table reconciles our Profits/(Losses) for the periods (an IFRS measure) to Adjusted EBITDA (a non-IFRS measure) for the periods indicated:

 

Reconciliation of Adjusted EBITDA (unaudited)  Three months ended   Six months ended 
Amount in INR thousands  September 30,
2021		   September 30,
2022		   September 30,
2021		   September 30,
2022		 
Loss for the period as per IFRS   (140,197)   (71,221)   (220,600)   (78,185)
Employee share-based compensation costs   79,227    36,531    128,285    71,021 
Depreciation and amortization   84,081    46,947    160,624    102,091 
Impairment of loan to joint venture   -    -    -    1,000 
Share of loss of joint venture   1,177    -    2,131    

-  

 
Finance income   (13,229)   (9,540)   (36,031)   (19,861)
Finance costs   22,476    59,979    48,502    90,683 
Change in fair value of warrants   (12,873)   -    (25,041)   

-  

 
Listing and related expenses   -    6,293    -    16,933 
Tax expense   2,624    8,728    4,200    17,580 
Adjusted EBITDA   23,286    77,717    62,070    201,262 

 

The following table reconciles our Results from Operations (an IFRS measure) to Adjusted Results from Operations (a non-IFRS measure) for the periods indicated:

 

Reconciliation of Adjusted Results from Operations (unaudited)  Three months ended   Six months ended 
Amount in INR thousands  September 30,
2021		   September 30,
2022		   September 30,
2021		   September 30,
2022		 
Results from operations (as per IFRS)   (140,022)   (5,761)   (226,839)   27,150 
Employee share-based compensation costs   79,227    36,531    128,285    71,021 
Impairment of loan to joint venture   -    -    -    1,000 
Adjusted Results from Operations   (60,795)   30,770    (98,554)   99,171 

 

The following table reconciles Loss for the periods (an IFRS measure) to Adjusted Profit/(Loss) (a non-IFRS measure) for the periods indicated:

Reconciliation of Adjusted Loss (unaudited)  Three months ended   Six months ended 
Amount in INR thousands  September 30,
2021		   September 30,
2022		   September 30,
2021		   September 30,
2022		 
Loss for the period (as per IFRS)   (140,197)   (71,221)   (220,600)   (78,185)
Employee share-based compensation costs   79,227    36,531    128,285    71,021 
Change in fair value of warrants   (12,873)   -    (25,041)   - 
Impairment of loan to joint venture   -    -    -    1,000 
Listing and related expenses   -    6,293    -    16,933 
Adjusted Profit/(Loss) for the period   (73,843)   (28,397)   (117,356)   10,769 

 

 

 

 

The following tables reconcile Basic and Diluted Loss per share (an IFRS measure) to Adjusted Basic and Adjusted Diluted loss per share (a non-IFRS measure) for the periods indicated:

 

   Three months ended   Six months ended 
Reconciliation of Adjusted Basic Loss (Per Share) (unaudited) 

September 30,

2021

  

September 30,

2022

   September 30,
2021		   September 30,
2022		 
Basic Loss per share (as per IFRS)   (2.23)   (1.14)   (3.51)   (1.26)
Employee share-based compensation costs   1.26    0.57    2.03    1.12 
Change in fair value of warrants   (0.21)   -    (0.40)   - 
Impairment of loan to joint venture   -    -    -    0.02 
Listing and related expenses   -    0.10    -    0.27 
Adjusted Basic Loss Per Share   (1.18)   (0.47)   (1.88)   0.15 

 

    Three months ended    Six months ended 
Reconciliation of Adjusted Diluted Loss (Per Share) (unaudited)   September 30,
2021		    September 30,
2022		    September 30,
2021		    September 30,
2022		 
Diluted Loss per share (as per IFRS)   (2.23)   (1.14)   (3.51)   (1.26)
Employee share-based compensation costs   1.26    0.57    2.03    1.12 
Change in fair value of warrants   (0.21)   -    (0.40)   - 
Impairment of loan to Joint venture   -    -    -    0.02 
Listing and related expenses   -    0.10    -    0.27 
Adjusted Diluted Loss Per Share   (1.18)   (0.47)   (1.88)   0.15 

 

The following table reconciles our Revenue (an IFRS measure), to Adjusted Revenue (a non-IFRS measure):

 

Reconciliation of Revenue (an IFRS measure) to Adjusted Revenue (a non-IFRS measure)

 

   Air Ticketing   Hotels and Packages   Other Services   Others   Total 
   Three months ended September 30, 
Amount in INR thousands (Unaudited)  2021   2022   2021   2022   2021   2022   2021   2022   2021   2022 
Revenue   284,949    428,595    98,985    267,281    35,399    34,599    31,126    100,903    450,459    831,378 
Add: Customer promotional expenses   223,667    641,149    87,912    67,575    3,563    6,454    -         315,142    715,178 
Service cost   -    -    (23,405)   (94,148)             -    -    (23,405)   (94,148)
Other income   -    -    -    -              -    -    46,514    63,474 
Adjusted Revenue   508,616    1,069,744    163,492    240,708    38,962    41,053    31,126    100,903    788,710    1,515,882 

 

   Air Ticketing   Hotels and Packages   Other Services   Others   Total 
   Six months ended September 30, 
Amount in INR thousands  2021   2022   2021   2022   2021   2022   2021   2022   2021   2022 
Revenue   504,818    804,289    133,073    657,983    52,227    82,126    67,269    186,025    757,387    1,730,423 
Add: Customer promotional expenses   312,312    1,060,333    108,387    126,239    6,680    10,363    -    -    427,379    1,196,935 
Service cost   -    -    (32,836)   (240,861)             -    -    (32,836)   (240,861)
Other income   -    -    -    -              -    -    125,441    83,118 
Adjusted Revenue   817,130    1,864,622    208,624    543,361    58,907    92,489    67,269    186,025    1,277,371    2,769,615 

 

 

 

 

Safe Harbor Statement

 

This earnings release contains certain statements concerning the Company’s future growth prospects and forward-looking statements, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the Company’s current expectations, assumptions, estimates and projections about the Company and its industry. These forward-looking statements are subject to various risks and uncertainties. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “will,” “project,” “seek,” “should” similar expressions and the negative forms of such expressions. Such statements include, among other things, statements concerning management’s beliefs as well as our strategic and operational plans; Yatra India’s ability to consummate the Indian IPO; the degree to which and how we will utilize debt facilities or the proceeds from the Indian IPO and the results we anticipate from how such funds are utilized; the adaptation or implementation of policies to try and reduce costs and the success of those policies at reducing costs; our ability to generate positive cash flow; and our future financial performance, including statements about our Revenue, cost of Revenue, operating expenses and our ability to achieve and maintain profitability, strengthen our balance sheet or take advantage of the rapidly recovering leisure and business travel market in India. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, Yatra India’s ability to consummate the Indian IPO; the impact of the COVID-19 pandemic; the impact of increasing competition in the Indian travel industry and our expectations regarding the development of our industry and the competitive environment in which we operate; the slowdown in Indian economic growth and other declines or disruptions in the Indian economy in general and travel industry in particular, including disruptions caused by safety concerns, terrorist attacks, regional conflicts (including the ongoing conflict between Ukraine and Russia), pandemics and natural calamities, our ability to successfully negotiate our contracts with airline suppliers and global distribution system service providers and mitigate any negative impacts on our Revenue that result from reduced commissions, incentive payments and fees we receive; the risk that airline suppliers (including our GDS service providers) may reduce or eliminate the commission and other fees they pay to us for the sale of air tickets; our ability to pursue strategic partnerships and the risks associated with our business partners; the potential impact of recent developments in the Indian travel industry on our profitability and financial condition; political and economic stability in and around India and other key travel destinations; our ability to maintain and increase our brand awareness; our ability to realize the anticipated benefits of any past or future acquisitions; our ability to successfully implement our growth strategy; our ability to attract, train and retain executives and other qualified employees, including suitable replacements for any members of our senior management team or other employees who may seek other employment opportunities as a result of the certain cost reduction initiatives that we have taken in response to the COVID-19 pandemic; and our ability to successfully implement any new business initiatives. These and other factors are discussed in our reports filed with the U.S. Securities and Exchange Commission. All information provided in this earnings release is provided as of the date of issuance of this earnings release, and we do not undertake any obligation to update any forward-looking statement, except as required under applicable law.

 

About Yatra Online, Inc.

 

Yatra Online, Inc. is the ultimate parent company of Yatra Online Limited (Formerly known as Yatra Online Private Limited, hereinafter referred to as “Yatra India”) whose corporate office is based in Gurugram, India. Yatra India is India’s leading corporate travel services provider with approximately 700 large corporate customers and over 46,000 registered SME customers and the second largest consumer online travel company (OTC) in the country in terms of gross booking revenue for Fiscal 2020 (Source: CRISIL Report). Leisure and business travelers use Yatra India’s mobile applications, its website, www.yatra.com, and its other offerings and services to explore, research, compare prices and book a wide range of travel-related services. These services include domestic and international air ticketing on nearly all Indian and international airlines, as well as bus ticketing, rail ticketing, cab bookings and ancillary services within India. With approximately 93,500 hotels in approximately 1,400 cities and towns in India as well as more than 2 million hotels around the world, Yatra India has the largest hotel inventory amongst key Indian online travel agency (OTA) players (Source: CRISIL Report). Yatra India recently launched a freight forwarding business called Yatra Freight to further expand its corporate service offerings.

 

For more information, please contact:

 

Manish Hemrajani

Yatra Online, Inc.

VP, Head of Corporate Development and Investor Relations

ir@yatra.com

 

 

 

 

Yatra Online, Inc.

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE LOSS FOR THREE MONTHS AND SIX MONTHS ENDED SEPTEMBER 30, 2022

(Amount in thousands, except per share data and number of shares)

 

   Three months ended September 30,   Six months ended September 30, 
   2021   2022   2021   2022 
   INR   INR   USD   INR   INR   USD 
   Unaudited   Unaudited   Unaudited   Audited   Unaudited   Unaudited 
Revenue                              
Rendering of services   419,333    730,475    8,977    690,118    1,544,399    18,980 
Other revenue   31,126    100,903    1,240    67,269    186,024    2,286 
Total revenue   450,459    831,378    10,217    757,387    1,730,423    21,266 
Other income   46,514    63,474    780    125,441    83,118    1,021 
                               
Service cost   23,405    94,148    1,157    32,836    240,861    2,960 
Personnel expenses   295,721    287,557    3,534    514,172    557,455    6,851 
Marketing and sales promotion expenses   29,047    81,291    999    44,174    112,191    1,379 
Other operating expenses   204,741    390,670    4,801    357,861    772,793    9,497 
Depreciation and amortization   84,081    46,947    577    160,624    102,091    1,255 
Impairment of loan to Joint venture   -    -    -    -    1,000    12 
Results from operations   (140,022)   (5,761)   (71)   (226,839)   27,150    333 
                               
Share of loss of joint venture   (1,177)   -    -    (2,131)   -    - 
Finance income   13,229    9,540    117    36,031    19,861    244 
Finance costs   (22,476)   (59,979)   (737)   (48,502)   (90,683)   (1,114)
Listing and related expenses   -    (6,293)   (77)   -    (16,933)   (208)
Change in fair value of warrants - gain   12,873    -    -    25,041    -    - 
Loss before taxes   (137,573)   (62,493)   (768)   (216,400)   (60,605)   (745)
Tax expense   (2,624)   (8,728)   (107)   (4,200)   (17,580)   (216)
Loss for the period   (140,197)   (71,221)   (875)   (220,600)   (78,185)   (961)
                               
Other comprehensive income/ (loss)                              
Items not to be reclassified to profit or loss in subsequent periods (net of taxes)                              
Remeasurement gain on defined benefit plan   (522)   (10,634)   (131)   101    (9,772)   (119)
Items that are or may be reclassified subsequently to profit or loss (net of taxes)                              
Foreign currency translation differences loss   706    (12,997)   (160)   (207)   (23,201)   (284)
Other comprehensive loss for the period, net of tax   184    (23,631)   (291)   (106)   (32,973)   (403)
Total comprehensive loss for the period, net of tax   (140,013)   (94,852)   (1,166)   (220,706)   (111,158)   (1,364)
                               
Profit/(loss) attributable to :                              
Owners of the Parent Company   (138,842)   (71,372)   (877)   (218,552)   (79,096)   (972)
Non-Controlling interest   (1,355)   151    2    (2,048)   911    11 
Loss for the period   (140,197)   (71,221)   (875)   (220,600)   (78,185)   (961)
                               
Total comprehensive profit/(loss) attributable to :                              
Owners of the Parent Company   (138,652)   (94,850)   (1,166)   (218,660)   (111,925)   (1,373)
Non-Controlling interest   (1,361)   (2)   -    (2,046)   767    9 
Total comprehensive loss for the period   (140,013)   (94,852)   (1,166)   (220,706)   (111,158)   (1,364)
                               
Loss per share                              
Basic                        (2.23)                     (1.14)                 (0.01)    (3.51)   (1.26)   (0.02)
Diluted                        (2.23)                     (1.14)                 (0.01)    (3.51)   (1.26)   (0.02)
                               
Weighted average no. of shares                              
Basic   62,225,754    62,771,809    62,771,809    62,225,754    62,706,102    62,706,102 
Diluted   62,225,754    62,771,809    62,771,809    62,225,754    62,706,102    62,706,102 

 

 

 

 

Yatra Online, Inc.

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT SEPTEMBER 30, 2022

(Amounts in thousands, except per share data and number of shares)

 

   March 31, 2022   September 30, 2022   September 30, 2022 
   INR   INR   USD 
   Audited   Unaudited 
Assets               
Non-current assets               
Property, plant and equipment   21,997    37,953    466 
Right-of-use assets   229,710    209,548    2,575 
Intangible assets and goodwill   752,260    736,935    9,057 
Prepayments and other assets   922    645    8 
Other financial assets   48,320    49,358    607 
Term deposits   -    421    5 
Other non financial assets   216,231    190,196    2,337 
Deferred tax asset   9,996    9,875    121 
Total non-current assets   1,279,436    1,234,931    15,176 
                
Current assets               
Inventories   235    126    2 
Trade and other receivables   1,934,713    2,661,508    32,709 
Prepayments and other assets   607,731    549,578    6,754 
Income tax recoverable   205,557    253,910    3,120 
Other financial assets   68,356    68,073    837 
Term deposits   568,264    413,341    5,080 
Cash and cash equivalents   800,282    289,376    3,556 
Total current assets   4,185,138    4,235,912    52,058 
                
Total assets   5,464,574    5,470,843    67,234 
                
Equity and liabilities               
Equity               
Share capital   842    844    10 
Share premium   20,286,474    20,318,569    249,706 
Treasury shares   (11,219)   (11,219)   (138)
Other capital reserve   263,531    297,270    3,653 
Accumulated deficit   (19,617,091)   (19,700,629)   (242,112)
Foreign currency translation reserve   (32,279)   (55,480)   (682)
Total equity attributable to equity holders of the Company   890,258    849,355    10,437 
Total Non-controlling interest   1,983    2,750    34 
Total equity   892,241    852,105    10,471 
                
Non-current liabilities               
Borrowings   4,204    80,987    995 
Trade and other payables   42,605    50,815    624 
Deferred tax liability   11,513    8,372    103 
Employee benefits   34,108    40,869    502 
Deferred revenue   64,965    34,015    418 
Lease liability   230,668    211,117    2,595 
Total non-current liabilities   388,063    426,175    5,237 
                
Current liabilities               
Borrowings   354,376    626,440    7,699 
Trade and other payables   2,394,712    2,316,618    28,470 
Employee benefits   68,845    55,825    686 
Deferred revenue   183,212    117,644    1,446 
Income taxes payable   4,052    11,040    136 
Lease liability   38,991    43,595    536 
Other financial liabilities   429,457    395,870    4,865 
Other current liabilities   710,625    625,531    7,688 
Total current liabilities   4,184,270    4,192,563    51,526 
Total liabilities   4,572,333    4,618,738    56,763 
Total equity and liabilities   5,464,574    5,470,843    67,234 

 

 

 

 

Yatra Online, Inc.

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR SIX MONTHS ENDED SEPTEMBER 30, 2022

(Amount in INR thousands, except per share data and number of shares)

 

   Attributable to shareholders of the Parent Company 
   Equity share capital   Equity share premium   Treasury shares   Accumulated deficit   Other capital reserve   Foreign currency translation reserve   Total   Non controlling interest   Total Equity 
Balance as at April 1, 2022   842    20,286,474    (11,219)   (19,617,091)   263,531    (32,279)   890,258    1,983    892,241 
                                              
                                              
Profit/(Loss) for the period                  (79,096)             (79,096)   911    (78,185)
                                              
Other comprehensive loss                                             
Foreign currency translation differences                  -         (23,201)   (23,201)   -    (23,201)
Re-measurement gain on defined benefit plan                  (9,628)        -    (9,628)   (144)   (9,772)
Total other comprehensive loss   -    -    -    (9,628)   -    (23,201)   (32,829)   (144)   (32,973)
                                              
Total comprehensive loss   -    -    -    (88,724)   -    (23,201)   (111,925)   767    (111,158)
                                              
Share based payments   -    -    -    5,186    65,836    -    71,022    -    71,022 
Exercise of options   2    32,095    -    -    (32,097)   -    -    -    - 
                                              
Total contribution by owners   2    32,095    -    5,186    33,739    -    71,022    -    71,022 
                                              
Balance as at September 30, 2022   844    20,318,569    (11,219)   (19,700,629)   297,270    (55,480)   849,355    2,750    852,105 

 

 

 

 

Yatra Online, Inc.

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR SIX MONTHS ENDED SEPTEMBER 30, 2022

(Amount in thousands, except per share data and number of shares)

 

   Six months ended September 30, 
   2021   2022   2022 
   INR   INR   USD 
             
Profit/(Loss) before tax   1,888    (60,605)   (745)
Adjustments for non-cash and non-operating items   80,707    173,724    2,135 
Change in working capital   (280,250)   (898,318)   (11,040)
Direct taxes paid (net of refunds)   (32,874)   (61,978)   (762)
Net cash flows used in operating activities   (230,529)   (847,177)   (10,412)
Net cash flows from/(used in) investing activities   (12,804)   100,167    1,231 
Net cash flows (used in) financing activities   (130,961)   265,853    3,267 
Net decrease in cash and cash equivalents   (374,294)   (481,157)   (5,914)
Cash and cash equivalents at the beginning of the period   800,282    800,282    9,835 
Effect of exchange differences on cash and cash equivalents   (2,812)   (29,749)   (365)
Cash and cash equivalents at the end of the period   423,176    289,376    3,556 

 

 

 

 

Yatra Online, Inc.

OPERATING DATA

 

The following table sets forth certain selected unaudited condensed consolidated financial and other data for the periods indicated:

 

   For the three months ended September 30,   For the six months ended September 30, 
(In thousands except percentages)  2021   2022   2021   2022 
Quantitative details *                    
Air Passengers Booked   896    1,266    1,311    2,556 
Stand-alone Hotel Room Nights Booked   289    412    359    997 
Packages Passengers Travelled   1    5    2    10 
Gross Bookings                    
Air Ticketing   6,624,473    13,200,796    8,517,457    28,038,334 
Hotels and Packages   988,658    1,947,481    1,215,569    4,151,792 
Other Services   823,571    745,371    1,290,219    1,570,738 
Total   8,436,702    15,893,648    11,023,245    33,760,864 
Adjusted Revenue                    
Air Ticketing   508,616    1,069,744    817,130    1,864,622 
Hotels and Packages   163,492    240,708    208,624    543,361 
Other Services   38,962    41,053    58,907    92,489 
Others (Including Other Income)   77,640    164,377    192,710    269,143 
Total   788,710    1,515,882    1,277,371    2,769,615 
Net Revenue Margin%**                    
Air Ticketing   7.7%   8.1%   9.6%   6.7%
Hotels and Packages   16.5%   12.4%   17.2%   13.1%
Other Services   4.7%   5.5%   4.6%   5.9%

 

 

* Quantitative details are considered on Gross basis

** Net Revenue Margin is defined as Adjusted Revenue as a percentage of Gross Bookings.