Q1 2021 Yatra Online Inc Earnings Call

Ladies and gentlemen.

For today's conference call.

This time, we are assembling today's audience sometime to be underway. Shortly we appreciate your patience some please.

<unk>.

[music].

Good day and welcome to <unk> first quarter Twentytwenty, One earnings Conference call Today's conference is being recorded.

As a reminder, we will not be taking any questions from the press today.

At this time I would like to turn the conference over to Mr. money. Johnny. Please go ahead Sir.

Well, thank you Holly.

Good morning, everyone welcome beyond fiscal first quarter 2021 financial results for the period ended June 2020.

I'm pleased to be joining the call today.

You want cofounder singing.

The following discussion including responses to your questions reflects management's views as of today September 2020, it does not undertake any obligation to update.

Before we had big enough.

Allow me to remind you that certain statements made during the course of the discussion may cost you forward looking statements, which are based on management's current expectations and beliefs and are subject to a number of risk.

<unk>.

Cause actual results to what you read before.

Important factors that maybe beyond the company's control these include expectations and assumptions related to that.

<unk>.

What a description of these risks news report <unk> filings with the FCC and our press release.

Copies of this and other filings.

Yes.

Mr Relations section of our website with that.

Let me turn the call over through.

Thank you Denise.

Good morning, everyone and thanks for joining us I Hope you I know comedies are all safe and then could help.

This is opposed to Oneq school the good weighing in a little what are you getting that'd be very involved with the it's much it.

In the meantime, bill.

I wouldn't I didn't find that makes it.

We acquired the situation as well and all the centered I traveled in India.

Well the situation is what it is not what we had expected. It does this situation that these days.

During this time, what they've sold any changes in challenges I'm comfortable with that being said this on liquidity.

And they accudate against doctors, which it automatically within our control.

This is also not the first time that they're facing the challenging situation of the company.

I'm glad I, just I see back in 2000, the need to the bankruptcy I think they show airlines and the subsequent lots of domestic aviation in July 2000 as well.

We've been through that's a good needed before and each time they've come out stronger.

And I feel confident that the same would be that is the sentiment.

We are talking to see a gradual recovery in travel love to the the opening of domestic aviation towards the end of May.

Oh Syngas nation Lady luck, though in them until March April earlier this year.

He believes the most is behind us now.

We've made all of these sensors changes to the all patients who got close to the band minimum and offer a capital raising June earlier. This year. We believe we had the balance sheet to see us back to profitability.

No well what do the during the same growth and profitability subject to be well before all this unfortunate.

We're excited about a multi pronged approach thinks he's just worried about.

As you would recall, we had one of the needing more to use in India.

I just got picked up another spring business in the country itself.

First with regards to they don't have traveling in India for the Lockdown.

On the consumer side, we've started to see some early signs of the company in travel in India. Since late May when they travel was allowed to stock buyback.

Domestic size and noted that down to about 25% or people would levels and that number continues to go and do you expect us to these 40% loved by the end of the calendar year.

On the internationally from.

Oh analyze the beginning to update on the bubble agreement between countries. So we've seen approximately 10% capacity come back online and there's some book continues to see literally on a weekly basis as you a new bubble agreements had entered into.

Domestic hotels were really taking bookings on a day limited basis.

But since then they'll close a number of seems to have allowed codensa sahgal patients without any gotten paid under the section.

We expect to see gradual recovery. It is another the next quarter as people begin to undertake charcoal and writing policies.

On the Gulf, you're telling folks.

We have the leading corporate travel service to widen in India.

Hi, easily scalable cost technology platform enables us to sell customizable and he's not even industry.

Currently the online penetration in the corporate travel market in India. We believe it's just so 10% a logical said that the market almost 60% is so by smaller auclair matters.

As it was over the past that makes it Denise I'd be already beginning to actually see signs of this that they will be an ex they did shift towards online says, especially as it contracts come up for renewal at the end up their life and go through the bidding process.

We remain confident did not like problems getting deliveries to so that we need scaling type stuff.

Oh, the other strategic growth driver is the expansion of our corporate vicious cycle as you consider do I know I'm traveling related there's still all things do this gossip corporate customer base of all.

As the largest stop it probably takes away then.

We had strong relationships with all of our topic customers, which constitute baseball I didn't I know there, but then again.

Because you need to make inroads into these organizations, depending on kind of an okay make sense that isn't it doesn't matter.

Oh, it take offering is in partnership with outright.

Has been better received by coconuts, even though it's early days yet.

The topic normally play that we have seen capitulate the importance of developing and he's getting the local school comparison challenges our platform allows our clients you also these opportunities today.

Especially as they may not be glazed didn't decided that.

It's also view as Dave has an employee retention too.

What else would then I suppose front, we recently announced a partnership with Amazon, India. The wider hospitality block was it the way they enjoy product using today they need.

Because it goes without any block most can leverage the undergone business marketplace has a one stop destination to access the way we ended up but across studies to cater to their needs and if it goes well that's in a safe and efficient.

No quick update on the litigation against Ebix as well, so while I'm not at Liberty to give any do you feel that the litigation I would just like to point out here that a large part of what we do close to this litigation is linked to the outcome of the case.

And it's not about it gosh I look also at the boat I.

Additionally needed ought to be dependent nor have we do you start up basis, I mean honestly, if there's an outcome.

The litigation.

Coming to US is still close what are the ones.

This quarter, reflecting the bulk of the back of the nations like So would love done in India, as Simon will likely shocks and shutting the bonds of Eastland late and they will need gradually be guys. You open up in June.

In the June quarter, adjusted revenue decreased by 86%.

Do I have 236.2 million or U.S., we find work.

Our adjusted EBITDA loss increase due I don't see under then nice like Portland, which is approximately $4.1 billion in that see month and good that'd be a dual from adjusted EBITDA loss of 200 in Fyfourteen de shielded or about $2.7 billion in that see month ended June last year.

It was also that goes in fact, the thought of it in 68.4 million I know well Usdten point do believe it or not already wireless in the current quarter due to legal and professional fees related to the merger transaction that either.

So these are onetime in nature.

And we'll be Normedix, excluding this hotel adjusted EBITDA loss would that be nine.

141 million, Oh, U.S.C. 1.9 billion for the quarter well. This is an adjusted loss by another 285.8, Mullineaux U.S.C. 2.7 billion for the same quarter last year. So despite what we've been able to on an ongoing basis drive improvement so cost and total you noted.

Yes.

Talking a bit more on the cost side during the quarter, we focused our efforts on restructuring costs and significantly brought down Opex last Sunday summit, approximately 2.7 million a month.

In the month of much Fenqi crazy to approximately 1.2 million the month well the month of May 2020 through a combination of companywide salary cuts ranging from 25% to 70 basis. It [noise].

And renegotiation of contracts innovative service providers.

We believe our current liquidity position and optimize cost talk chipped away that's good enough capital.

With the standard for loans slowdown if it wasn't on slide into travel industry.

As of June Thirtyth, Twentytwenty, the balance balance of cash cash equivalents and dumb deposits on the balance sheet, what I know.

So you 0.67 play.

Funded on approximately U.S., we 48.7 limited.

Since then however will be has settled out ATP litigation in the pilots except for the sake I sort of guide a flavor payment was made for the earn out of the acquisition up approximately 11 million.

And our current cash balances as up 31st oldest 2020 is approximately $34 million.

Even though the newest funded we believe we have adequate liquidity on our balance sheet to return to profitability.

With that optimize saw structure newly launched high margin initiatives. We believe we can now a days they feel that approximately 60% of all people with 2000 in December 2019 quarters on mute of 22.2 million.

We're excited about up partnerships a drag along the expense management side because we.

We view expense management doesn't integrity part about this locally as we've gotten to they do diversified beyond our core portfolio of travel to become an end to end business solutions platform what else.

Joining had.

So to drive efficiency will outline by automating the expense management process.

Technology platforms complement each other and we look forward to growing with either to blade lasting business impact for our clients.

A third party report by MRT I thought it would be in good expense management software market has to foster slowing market globally at U.S.C. 593.3 million by the end up going to be pretty by growing at a time grew 14.1%.

Lastly, I would like to remind everyone that India southern market and it's also tried market in particular was the fastest growing travel market globally piece I limit going up to 12% gather and expected to these 32 billion by Twentytwenty.

A large part of the corporate travel market was all play the pandemic and we expect the shift from offline to online to accelerate as a result of the pandemic benefiting on late last like the also in the longer term.

This concludes our prepared remarks, let me now open the call well Q anyway, Let me show with you.

Thanks, Charles Holley can you. Please open up the call for acuity.

[noise] certainly if you would like to ask your question. Please signal by pressing star one on your telephone keypad.

If you are using a speaker phone. Please make sure. Your mute function is turned off to allow your signals have each our equipment.

Star wanted to ask a question.

For just a moment to allow.

Just signal for questions.

And again, just as a reminder that is star one on your telephone keypad. If you wish to ask a question.

It appears there are currently no telephone questions. So I'd like to hand, the call back to our host.

Additional.

Thanks, a lot it. Thank you everyone for joining us today.

We look forward to speak to you in the near future.

Any closing remarks.

Dislike would like to thank everyone again for taking out the dialogue.

I know it's been a was since he's also indicated now going forward. We will end up obviously interacting with a 40 basis and that off any follow up questions that any of you have you seen please reach out to me shuttle type of Silicon stay safe.

Thank you ladies and gentlemen. This concludes today's call. Thank you for your participation you may now disconnect.

[music].

[music].