Ixigo back in black, posts ₹8 cr Q1 profit

Online travel platform Ixigo returned to profitability in the June quarter, ahead of its proposed initial public offering (IPO), the company informed the markets regulator.

According to Ixigo’s addendum filed with the Securities and Exchange Board of India (Sebi), the Le Travenues Technology Ltd-owned travel portal posted ₹8.2 crore net profit in April-June, against a loss of ₹3.4 crore in the year ago.

For the year ended March 2022, its loss was at ₹21.2 crore against a profit of ₹7.5 crore in FY21, primarily due to covid-led disruptions and employee stock ownership plan allotted to employees.

In the June quarter, Ixigo’s operating revenue doubled to ₹118.8 crore, as against ₹56.4 crore in year-ago quarter.

Income from ticketing constitutes 94% of its operating revenue. It also booked other income of ₹10 crore primarily on a write-back of a liability.

Its operating revenue witnessed 3.4x growth between FY20 and FY22—from ₹111.6 crore in FY20 to ₹135.5 crore in FY21 and ₹379.5 crore in the year ended March 2022.

Ixigo claimed to emerge as the fastest growing online travel agent among 30 Indian peers, as well as the second biggest OTA in terms of operating revenues in FY22, behind MakeMyTrip.

Ixigo’s employee costs doubled to ₹30 crore during the quarter from ₹15.2 crore in the June quarter of FY22.

With travel bouncing back, marketing expenses for OTAs increased in FY22 compared to FY21. In the last financial year, its advertising and sales expenses were at ₹57.5 crore, it added.