The company records a profit of INR 61.4 Cr for the fiscal year 2020-21, a jump of more than 86% from the profit of INR 33 Cr for the fiscal year 2019-20.
Ease Trip Planners runs online travel portal Easemytrip.com and successfully went public in March this year
The company, however, saw a 50% drop in gross booking revenue from INR 4,204 crore in the 2019-20 financial year to INR 2,128 crore in the 2020-21 financial year.
As the pandemic has hit the travel and tourism industry and most travel tech companies, New Delhi-based Easy Trip Planners reported a profit of INR 61.4 Cr for the 2020-21 financial year. This is a jump of over 86% from the INR 33 Cr profit for the 2019-20 financial year.
Half of the profits were recorded in the fourth quarter when the first wave of the pandemic subsided and the rise of the second wave was not noticed until March. The company recorded a net profit of INR 30.5 crore in the fourth quarter of the financial year, compared to a profit of INR 3.6 crore in the previous financial year.
Ease Trip Planners runs online travel portal easymytrip.com and successfully went public with an IPO earlier this year. Launched at INR 212 per share on March 8 on the National Stock Exchange, shares of Easy Trip Planners are now trading at INR 421.
The company named higher margin and commission and lower operational trading as the main drivers of its highest ever profit. Total expenditure has been halved from INR 135 Cr in FY 2019-20 to INR 67 Cr in FY 2020-21.
“This has been possible thanks to increased airline commissions, increased operational efficiency and our lean operating cost working model. We have fought the headwinds of the Covid pandemic -19 and came back with strong profitability thanks to our lean cost structure and our ability to save more without losing the revenue pie.Fiscal 20-21 was a year in which the first two quarters were fundamentally catastrophic for the industry due to the lockdown,” said Easy Trip Planners co-founder Prashant Pitti.
Another travel technology company MakeMyTrip also managed to reduce its adjusted net loss to $9.2 million in fiscal 2021 from $86.5 million in the fiscal year ended March 31, 2020. The company reported revenue of $163 million in fiscal year 2021 (FY21), ending March 30, 2021, a massive 68% drop from the prior year. MakeMyTrip posted revenue of $79 million in the fourth quarter of the fiscal year, compared to $56.8 million in the third quarter.
Easy Trip Planners saw a 50% drop in gross booking revenue from INR 4,204 crore in FY 2019-20 to INR 2,128 crore in FY 2020-21. Total revenue for the financial year 2020-2021 was INR 151 Cr compared to INR 181 Cr in the previous financial year.
As the second wave of the pandemic is slowly waning, the company foresees huge pent-up demand for the travel and tourism sector after the vaccination campaign across India.
“With new avenues for growth in the hospitality and vacation industry and leveraging our existing customer base for cross-selling, we anticipate an increase in our customer wallet share, thereby improving revenue and profitability in the future. Going forward, we also reiterate our confidence in our ability to maintain the company’s exceptional shareholder value,” Pitti said.