Ixigo reports net loss in Q2 on a one-time ESOP hit, despite a 37% jump in revenue
Profit before share of loss of an associate, exceptional items, and tax turned to a loss of Rs 2.49 crore from a profit of Rs 19.45 crore a year earlier, including a one-time ESOP expense of Rs 26.93 crore in the quarter.
Le Travenues Technology, the parent company of Ixigo, on Wednesday reported a quarterly loss of Rs 3.46 crore, as operating expenses surged outpacing brisk revenue growth and undercutting margins even as demand for flights and buses stayed strong.
The online travel agency’s revenue from operations rose 36.9% to Rs 282.7 crore in the quarter ended September 30, compared with Rs 206.4 crore in the previous year.
Profit before share of loss of an associate, exceptional items, and tax turned to a loss of Rs 2.49 crore from a profit of Rs 19.45 crore a year earlier, including a one-time ESOP expense of Rs 26.93 crore in the quarter.
Excluding the unusual items in both periods, Ixigo said profit before tax would have risen 26% YoY to Rs 24.44 crore.
Employee benefits expense nearly doubled, up 91.9% YoY to Rs 74.18 crore, while other expenses climbed 41.7% to Rs 212.29 crore. Total expenses climbed 51.7% YoY to Rs 290.40 crore in the September quarter, compared with Rs 191.47 crore a year earlier, tipping the company into the red.
The company’s gross transaction value (GTV) grew 23% to Rs 4,347.5 crore year-on-year.
Meanwhile, flight booking revenue rose 60.2% YoY to Rs 893.92 crore, with segment result up 44.9% to Rs 395.55 crore. Management said international tickets and attachment of “peace of mind” ancillaries helped take rates, even as the broader domestic market faced constraints.
Revenue for the buses segment jumped 64.2% to Rs 654.32 crore, and the segment result rose 31.1% to Rs 340.70 crore, aided by new private capacity, seven additional state transport corporations, and pilgrimage travel demand.
Revenue for trains edged up 11.3% to Rs 1,228.63 crore, while the segment result fell 9.2% to Rs 341.80 crore after Indian Railways’ policy changes altered booking patterns and required algorithm realignment for assurance products. The company said volumes stabilised later in the quarter.
Ixigo is raising Rs 1,296 crore via a preferential issue to strengthen its balance sheet, accelerate AI-led product development, expand hotels, and keep optionality for acquisitions.
Prosus (MIH Investments One B.V.) is the incoming investor. The company reiterated that it doesn’t plan to spark a discounting war and will focus investments where payback is visible.
Edited by Suman Singh