This was despite halving of Gross Booking Revenue in a pandemic struck year. The company recorded a net profit of Rs30.5cr in the fourth quarter of the fiscal as opposed to a profit of Rs3.6cr in the previous fiscal.
Gross Booking Revenue, however, fell from Rs4,204cr in FY2019-20 to Rs2,128cr in FY2020-21 as a result of a national lockdown and pandemic dictated travel domestic and international travel.
In the fourth quarter of the year, however, EaseMyTrip witnessed a V-shaped recovery as it made almost 89% of the gross booking revenue of the corresponding quarter in the previous fiscal, clocking in gross revenue of Rs907.6cr in the Q4 of FY20-21 as opposed to Rs1024.9cr in Q4 of FY20-21.
Total income for fiscal 20-21 stood at Rs151cr as against Rs181cr in the previous fiscal. In the fourth quarter of fiscal 20-21, total income jumped to Rs69.2cr as against Rs40.3cr in the Q4 of FY19-20.
The increase in profitability despite lower income was driven by increase in margin & commissions, and 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 net impact was a reduction in total expenditure from Rs135cr in fiscal 2019-20 to Rs67cr in fiscal 2020-21.
According to Prashant Pitti, Co-Founder and Executive Director, “Despite the challenges faced due to the pandemic, EaseMyTrip recorded its highest ever profitability in FY2021. This was possible due to increased commission from airlines, increase in operational efficiencies and our model of working on lean cost of operations.
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 quarteRswere basically a washout for the industry due to the lockdown. The fact that we could bounce back in the last two quarteRsshows the resilience of the company.
We anticipate a huge pent up demand for travel & tourism sector post the vaccination drive across India, giving us strong revenue visibility for yeaRsto come. With new avenues for growth from hotels & holiday sector and leveraging our existing base of customeRsfor cross selling we anticipate increased wallet share from the our customeRsenhancing the revenues & profitability going forward. Moving forward, we also reiterate our confidence in our ability to sustain Company’s delivery of outstanding shareowner value.”
At around 2:30 PM, Easy Trip Planners was trading at Rs424 per piece higher by 0.46% on Sensex.