Travel stock crosses Rs 100 mark, stuck in 20% upper circuit today; here’s why

Travel-related stock Yatra Online Ltd was stuck in the upper circuit of 20% on Monday after the tour operator firm reported a stellar set of Q1 earnings. Yatra Online reported a 297.5% rise in profit reaching ₹15.9 crore in the June quarter against ₹4 crore in the previous year. The company reported a revenue increase of 108.1% to ₹209.8 crore compared to ₹100.8 crore in the same period last fiscal year.

Reacting to the stellar earnings, the Yatra Online stock hit an upper circuit of 20% at Rs 115.04 today against the previous close of Rs 95.87 on BSE. Market cap of the firm  rose to Rs 1,805 crore. Despite the impressive financial performance, the company’s shares, trading at ₹115.04, remain below their initial public offering (IPO) price of ₹143.

Contributing to Yatra Online’s growth in the recent quarter were improved gross margins for both air travel and hotel segments, which rose to 4.6% and 9.05% respectively. Additionally, the company’s EBITDA saw a substantial rise of 410.7% to ₹22.98 crore, with margins expanding to 11% from 4.5% year-over-year.

The growth was driven by the hotel and packages business, as well as the meetings, incentives, conferences, and exhibitions (MICE) segment. The company also added 34 new corporate accounts during the quarter and reported a significant reduction in gross debt from ₹54.6 crore to ₹2.9 crore.

The company’s gross bookings increased by 9% compared to the previous year, reflecting a positive trajectory, yet challenges remain in pushing share prices to their initial IPO value. This performance contrasts with the broader market trends, as the company continues to make strategic improvements in its operations and financial health.