EaseMyTrip reports eight-fold increase in Q4 profit1 min read . Updated: 15 Jun 2021, 08:20 PM IST
- For the quarter ending on 31 March, the company's revenue increased 72% to Rs69.29 crore
Online travel company EaseMyTrip (Easy Trip Planned Limited), which recently launched an Initial Public Offering (IPO), on
Tuesday reported a eight-fold increase in March quarter profit to ₹30.47 crore on an annual basis driven by increase in margin and commissions, and reduction in operational expenses.
For the quarter ending on 31 March, the company's revenue increased 72% to Rs69.29 crore. Expenses fell to ₹26.18 crore during the quarter from ₹35.06 during the corresponding period of the previous year.
On an annual basis, the company reported a 86% rise in yearly profits for FY2021 at ₹61.01 crore, despite a 17% fall in revenue to ₹150.76 core.
The increase in profitability despite lower income was driven by increase in margin and commissions, reduction in operational expenses including reduction in discounts, marketing and sales promotion and employee expenses as well as gains from cutbacks in payment charges, the company said in a statement.
The net impact was a reduction in total expenditure from ₹135 crore in fiscal year (FY) 2019-20 to ₹67 crore in FY 2020-21, it added.
“We have battled the headwinds of the Covid-19 pandemic and returned with strong profitability due to our lean cost structure and our ability to economize further without losing out on the revenue pie. FY20-21 was a year where the first two quarters were basically a washout for the industry due to the lockdown," co-founder and executive director Prashant Pitti said.
"We anticipate a huge pent up demand for the travel and tourism sector post the vaccination drive across India, giving us strong revenue visibility for years to come," Pitti added.
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