Go Air bankruptcy leads EaseMyTrip’s ₹15 crore loss in Q4 FY24

EaseMyTrip, Indian online travel booking competitor to Nasdaq listed MakeMyTrip, recently released its financial results for the fourth quarter (Q4) of FY24 (fiscal year ending March 2024). The Indian firm reported a net loss of ₹15 crore for the fourth quarter of the fiscal year 2024 (Q4 FY24). This marks a significant shift from the ₹31 crore profit recorded in the same period the previous year. The financial downturn is primarily attributed to substantial write-offs related to the now bankrupt Indian Airline, Go Airlines (India) Limited, also known as Go First.

The financial results for Q4 FY24 reveal a stark contrast to the same quarter last year. EaseMyTrip’s revenue for the quarter rose significantly by 43% year-on-year, reaching ₹173 crore, up from ₹121 crore in Q4 FY23. Despite this robust revenue growth, the company’s total expenses also saw a sharp increase, escalating from ₹76.36 crore in the previous year to ₹117.48 crore in Q4 FY24. The primary factor contributing to this spike in expenses was the write-off of dues from Go First, which amounted to ₹74 crore. After accounting for taxes, the net write-off stood at ₹54 crore.

For the full fiscal year 2024 (FY24), EaseMyTrip reported a revenue of ₹609 crore, reflecting a 31% increase from ₹464 crore in FY23. This growth underscores the company’s ability to expand its market share and diversify its revenue streams. However, the profit after tax (PAT) for FY24 declined by 23%, falling to ₹103 crore from ₹134 crore in the previous fiscal year. The decline in PAT can be attributed to the increased operational expenses and the significant write-off associated with Go First.

Despite the quarterly loss, EaseMyTrip’s non-air segments demonstrated strong growth for the period. The company reported a 39% increase in hotel night bookings in Q4 FY24, and other bookings, including buses and activities, surged by 53%. In FY24, EaseMyTrip also undertook several strategic initiatives aimed at driving future growth. Notably, the company acquired a 50% stake in Jeewani Hospitality to develop a 150-room Radisson Blu hotel in Ayodhya. This investment is expected to cater to approximately 1.5 lakh daily visitors, enhancing EaseMyTrip’s presence in the hospitality sector.

Additionally, EaseMyTrip launched a new subsidiary, EaseMyTrip Insurance Broker Private Limited, marking its entry into the ₹7.9 trillion insurance industry. “These results underscore our commitment to customer satisfaction and service expansion. We remain devoted to delivering excellence and addressing the ever-changing needs of the market,” Rikant Pittie, co-founder of Easemytrip, wrote in a post on LinkedIn.

Beyond the focus on profitability, EaseMyTrip is also pursuing strategic diversification. It has already acquired a 50% stake in Jeewani Hospitality, which paves the way for the development of a luxurious 150-room Radisson Blu hotel in Ayodhya. Furthermore, the startup recently launched EaseMyTrip Insurance Broker Private Limited, a subsidiary that marks the company’s entry into the vast Indian insurance industry, valued at a staggering ₹7.9 trillion. By venturing into the insurance domain, EaseMyTrip aims to provide a more comprehensive suite of services to its customers, potentially encompassing travel insurance alongside other insurance products.