Traveltech platform EaseMyTrip is anticipating a positive net cash flow from operations this fiscal year, according to CEO and Co-founder Nishant Pitti, despite reporting its first-ever loss in the March quarter since going public in 2021.
Nishant stated, “We've always prioritized profitability, and we'll be doing so this year as well. We expect both sales and profitability for the upcoming quarter to be good. Pitti stated to Business Standard, "We have noticed that our profit after tax has improved significantly, despite the fact that our overall business has shown comparatively slower growth."
According to Pitti, the loss resulted from a write-off of recoverable dues from Go Air totaling Rs 54 crore net.Pitti stated that the loss was the consequence of a write-off of Rs 54 crore in recoverable dues from Go Air, net of taxes.
"We assessed the scenario and came to the conclusion that the chances of recovering the finances were slim amid GoAir's ongoing dispute resolution process at the National Company Law Tribunal," he told reporters. Notably, the company's non-air sectors and rising hotel reservations have been the most significant revenue drivers in recent quarters.
In the fourth quarter (Q4) of fiscal year 2023-24 (FY24), the firm's hotel night reservations increased by 39 percent, while other bookings, including trains and buses, increased by 53 percent. Hotel night reservations surged by 49% during the course of the fiscal year, while other bookings rose by 67%. "At the start of this year, we established goals for expanding our non-air parts. We believe we are on the right road, since our non-air segments are expanding rapidly," Pitti remarked.
The corporation is also investing in artificial intelligence. "Last year, we launched our AI-powered Smart Voice Recognition Technology, which transformed travel booking by enabling consumers to make bookings using simple voice commands in numerous Indian languages. Furthermore, the company bought CheQin.ai to upgrade its hotel booking platform with AI-powered features that boost bargaining power and booking efficiency.
"It is too early to start discussing and defining figures at this point. However, our efforts in an AI-powered platform capable of streamlining trip reservations to give unprecedented ease will continue," Pitti added.
EaseMyTrip is preparing for offline growth this year, with the objective of adding 100 outlets by the end of FY25. "These outlets will allow us to reach a larger audience and create more personalized client experiences, especially in smaller cities where personal connections are valued highly. We're also exploring future acquisitions, focusing on asset-light and technology-based businesses, to expand our services and match the growing demand for premium travel experiences," he added.
