EaseMyTrip profits jump six-fold in Q1FY22

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New Delhi: Online Travel portal Easy Trip Planners Limited has reported six fold growth in net profit to Rs 15.4 crore in Q1FY22 as against a net profit of Rs 2.5 crore in the corresponding quarter of the previous fiscal. This was despite the travel and tourism industry being severely disrupted by the second wave of the pandemic.

The results highlight the resilience of the company’s lean structure business model. The increase in profits is attributable to increased margins and commissions, enhanced operational efficiencies, and cost rationalization programs along with a reduction in operational expenses with respect to discounts, marketing and sales promotion and employee expenses. Discount expenses, marketing expenses, employee expenses were reduced by 48%, 51% and 28% respectively as compared to Q4FY21. Other expenses too were down by 53% on Q-o-Q basis.

Despite the impact of the second wave on the travel and tourism sector, the company witnessed a Y-o-Y increase of 239% in the air ticket booking segment. The train, bus and other segments together have seen bookings that have reached 80% plus volumes of FY21 in the first quarter itself, and the hotel segment too has sustained its momentum during the period. In FY21, non-air transactions stood at 2,55,000, clearly suggesting that EaseMyTrip is gaining strong momentum in non-air bookings as well.

“Despite the challenges posed by the second wave of the pandemic, EaseMyTrip has delivered robust growth in one of the most disruptive periods for the travel and tourism industry. This was possible due to the increase in operational efficiencies and our model of working on lean cost of operations. The fact that we recorded our highest ever profitability in FY20-21, and continue to stay profitable in Q1FY22 is a testament to the company’s resilience and ability to adapt to the changing external environment” Nishant Pitti, CEO and Co-founder.

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