Easy Trip Planners

Industry rebound supports strong booking performance

14 November 2022

Easy Trip Planners (EMT) saw a strong 19%sequential/121% YoY improvement in Gross Bookings
Revenues benefitting from the revenge travel at play through recent quarters notwithstanding the
usual weak seasonality and thereby being slightly ahead of JMF estimates. However increased
promotional expenses which included onetime spend of INR 130 Mn(0.6% of GBR) resulted in
EBITDA/PAT being lower than estimates. Company suggested that it was seeing strong traction in its
recently launched Dubai operations as well as called out for higher share of B2B2C business which
has resulting in higher net working capital ( ex-cash) in 1HFY23. We tweak our FY22-25E lower by 3-
5% given 2Q miss despite raising our GBR estimates by 3-4%. Maintain HOLD with an unchanged TP
of INR 400, based on unchanged 40x PER with roll forward to Sep’23(V/s June’23 earlier) neutralising
the impact of earnings cut.

 Revenge travel continues to support strong revenue performance: EMT reported a 19%
QoQ /121% YoY increase in Gross booking revenues at INR 19.8 bn, slightly ahead of JMF
estimates. Take rates improved by 70 bps sequentially to 8.6% (V/ 7.9% QoQ) in line with
trend seen at US listed peers as well. However higher A&P expenses(1.5% of GBR) which
included onetime promotions expenses of INR 130 mn during Asia Cup resulted in EBITDA
and net profits coming in much lower than our expectations. We note that EBITDA margins
came in at 34.1%, down 1340 bps QoQ/2550 bps YoY. Net profits at INR 285 mn, up 5% YoY
despite the 121%/148% growth in GBR and revenues from operations and thereby missed
expectations.
 Company remains confident of industry rebound; B2B2C mix may stabilise ahead: EMT
remains confident of overall industry rebound as also confirmed by strong sales momentum
seen during the promotional activity undertaken by the company in Oct’22. Further the
company noted that while the share of B2B2C has increased in 1HFY23 which has also
resulted in increase in net working capital(ex cash), it expects the mix to stabilise ahead. We
note that EMT has seen a negative CFO in 1HFY23 despite strong growth in revenues and
operating profits with CFO of INR (91) mn.
 Tweak FY22-25E marginally; HOLD stays with an unchanged TP of INR 400: We tweak
FY22-25E earnings lower by 3-5% on account of 2Q Miss on EBITDA and net profits even as
we raise our GBR estimates by 3-4%. We retain HOLD with an unchanged TP of INR 400,
based on 40x PER on Sep’23 as rol forward to Sep’23 neutralised the impact of cuts to
earnings estimates.. While EMT stands out for it’s frugal and lean structure, recharged
competition and limited non airline portfolio is likely to chip into the ‘market share gains/ No
2 Indian OTA ’ thesis for the name even as valuations remain at par or premium to other
profitable Internet plays in India which enjoy a dominant share in their respective segments.