Ixigo parent's shares plunge 20% after Q2 losses
What's the story
Shares of Le Travenues Technologies Ltd., the parent company of travel services aggregator Ixigo, have crashed 20%. The decline came after it reported losses at both EBITDA and net levels for the September quarter. Despite a year-on-year (YoY) revenue increase of 37% to ₹282.7 crore, compared to ₹206.4 crore in the same quarter last year, the company still posted an EBITDA loss of ₹3.6 crore against a profit of ₹17.87 crore last year.
Financial performance
Net loss compared to profit last year
The company's net loss stood at ₹3.46 crore, compared to a profit of ₹13.08 crore in the corresponding quarter last year. However, when adjusted for ESOP expenses, Ixigo's EBITDA rose to ₹28.5 crore, marking a 36% increase YoY. The company's gross transaction value (GTV) also grew by 23% to ₹4,347.5 crore, with flight GTV increasing by 29%, bus GTV rising by 51%, and train GTV up by 12% YoY.
Operational metrics
Prosus invests ₹1,295 crore for 10% stake in Ixigo
Ixigo also reported a 20% improvement in its contribution margin and a 30% rise in operating cash flow to ₹91.5 crore. The company expects a stronger second half, driven by the seasonal uptick in travel demand. Recently, Prosus invested ₹1,295 crore in the company for a 10% stake at ₹280 per share and plans to increase its holding to 16%.