Yatra Online Limited, one of India’s leading online travel companies, reported a significant decline in profit for the first quarter of the fiscal year 2025 (Q1 FY25). The company’s profit dropped by 32.5%, amounting to Rs 4.04 crore. This steep decline was largely due to reduced volumes in the Business-to-Consumer (B2C) segment, which faced stiff competition in the market.
Yatra’s total revenue from operations during Q1 FY25 was Rs 100.8 crore, marking a 6.4% decrease compared to the previous quarter. This drop in revenue is primarily attributed to a strategic decision by the company to cut back on discounts in its B2C segment. The intention behind this move was to manage the growing price competition in the market. However, this strategy led to a significant impact on the company’s overall revenue.
Growth in Corporate Travel Segment
While Yatra faced challenges in the B2C segment, the company’s Corporate Travel division showed promising growth. During the quarter, Yatra successfully onboarded 34 new corporate clients, contributing to a total billing potential of Rs 202.8 crore.
Dhruv Shringi, the CEO of Yatra, highlighted the strong performance of the Corporate Travel segment, despite difficulties in other areas. He mentioned that their customer acquisition rates have exceeded industry benchmarks, showcasing the strength of their Corporate Travel services in India.
Impact of Rising Operational Costs
“Even though the B2C segment faced challenges during the June quarter, our Corporate Travel segment displayed robust growth across all key metrics. We successfully secured 34 new corporate customer accounts. As the leader in Corporate Travel services in India, our customer acquisition rates remain strong, consistently outperforming industry benchmarks. We are currently exploring strategic M&A opportunities to further bolster our Corporate Travel segment, with a promising pipeline of prospects under evaluation,” Shringi added.
Yatra’s overall profitability was further affected by rising operational costs, which included significant expenses related to employee benefits, marketing, and technology. Despite efforts to manage these costs, the decrease in revenue led to a reduction in profit margins.
